2 Unstoppable Stocks That Could Turn $100,000 Into $500,000 by 2030

The beginning of 2022 might feel like a great opportunity to shuffle your portfolio, but it's important you only purchase stocks that you're prepared to hold for the next five years (or longer). While everyone is focused on getting a fresh start in the new year, as investors we shouldn't lose sight of our long-term goals.

High-quality technology stocks have been great vehicles for growth in recent years even accounting for the pandemic, and with the rapid advancement of new innovations, that probably won't change anytime soon. These two companies could even deliver fourfold returns by 2030. Here's why. 

Image source: Getty Images.

1. The case for Nvidia

Semiconductors are the advanced computer chips that power the devices and technologies we use every day. They've become increasingly critical as more goods and services enter the digital realm, and Nvidia (NVDA 0.76%) has become one of the most sought-after producers in the world. 

The company is best known for its graphics cards, which are wildly popular among consumers for gaming applications. Gaming is Nvidia's largest segment, and in the recent third quarter of 2021, it accounted for $3.2 billion of the company's $7.1 billion in revenue. Additionally, over 14 million players are now on the company's cloud-based gaming system GeForce Now -- twice as many as the same time last year -- where they can stream over 1,000 of their favorite games without ever needing to install updates or patches.

But Nvidia also builds high-powered chips for data centers and, based on its growth rate, that segment could be on track to overtake gaming as the company's largest revenue source in 2022. Still, it gets even more exciting for long-term investors. Nvidia is making strides in futuristic industries like self-driving vehicle technologies and professional visualization, the latter of which will be key to the new virtual world known as the metaverse. 

Math dictates that if Nvidia's price-to-sales ratio remained constant, then it would need to grow its revenue at a compound annual rate of 23% each year until 2030 for its stock to increase in value by 400%. Right now, it's crushing that target.

Data source: Nvidia, Yahoo! Finance. CAGR = Compound Annual Growth Rate.

Historically, the semiconductor industry is cyclical, which means Nvidia's strong growth rate might taper off in the future. But even if it's cut in half, it'll still be well above the 23% level. Plus, the blistering pace of global innovation means Nvidia's chips are in more demand than ever before. 

Image source: Getty Images.

2. The case for Meta Platforms

Meta Platforms (META 1.54%) is the next iteration of Facebook as a company, with the change in branding reflecting its shift in focus to the metaverse. The company views this new virtual reality as the future of social networking -- and it's well-positioned to lead the way with 2.9 billion monthly active users on its platforms globally already.

Meta's flagship brands will retain their existing names, including Facebook, Instagram, and WhatsApp. But the company envisions a shift in the way we interact with these technologies; rather than viewing them onscreen, we could be inside them, each of us represented by digital avatars of ourselves that facilitate an existence beyond the physical realm. 

Meta's goal is to construct the foundations of the metaverse and potentially own the general ecosystem. However, the company acknowledges the project will take a broad collaborative effort from countless technology companies, especially those in the hardware space. While Meta owns the Oculus line of virtual reality devices, it's semiconductor companies like Nvidia or Advanced Micro Devices that build the technology to power them. 

Nonetheless, if Meta is able to generate a metaverse that is central to most users' experience (like Facebook is), the company could have immeasurable pricing power. It could potentially earn revenue from all of the activity that happens within it, especially if it has a self-sustaining digital economy where users can purchase goods and services. 

As a company, Meta has an impeccable track record of producing annual revenue growth far above the 23% it needs for its stock to grow fourfold by 2030.

Data source: Meta Platforms, Yahoo! Finance. CAGR = Compound Annual Growth Rate.

Meta is also extremely profitable, with $13.94 in estimated earnings per share for the full-year 2021, pending its fourth-quarter result. That places the stock at a price-to-earnings multiple of just 24, far cheaper than the broad Nasdaq 100 technology index which trades at a multiple of 39. 

Put simply, the stock is attractive right now, and the potential of the metaverse makes it a great bet for long-term growth.