3 Growth Stocks That Could Be Huge Winners in the Next Decade and Beyond

The tech sell-off in 2022 highlighted the importance of focusing on a company's long-term stock performance. In the 12 months leading up to the new year, the Nasdaq-10 Technology Sector index plummeted 40% as an economically challenged market led to reduced consumer demand.

However, multiple stocks in the tech industry have posted solid growth over the long term. As seen in the chart below, Advanced Micro Devices (AMD -5.44%), Microsoft (MSFT -1.27%), and Alphabet (GOOG -1.10%) (GOOGL -1.23%) each enjoyed strong growth over the last five years despite a sell-off in 2022.

With solid positions in their respective industries, these companies' shares will likely continue soaring well into the future. 

Here are three growth stocks that could be huge winners in the next decade and beyond. 

Advanced Micro Devices

Following sharp declines in the PC market over the last 12 months, AMD shares were battered in 2022, falling 55%. However, that hasn't dampened its long-term outlook. In fact, over the last decade, AMD's stock skyrocketed by over 2,000%, primarily thanks to the success of its Ryzen series of processors launched in 2017.

Since that pivotal year, the company's revenue soared 280% to $16.4 billion, while operating income has risen 2,000% to $2.6 billion.

Multiple analysts project weak earnings throughout the next year for AMD as a potential recession continues to burden the PC market. However, economic challenges will not last forever, and the company's data center business will likely continue booming. 

AMD's new generation of data center chips, its Genoa series, launched in November and will serve Microsoft's Azure cloud division and Alphabet's Google Cloud. Meanwhile, benchmarks show the chips outperform Intel's recently launched data center chips, creating more anticipation for AMD's more powerful Genoa-X chips, which are due to release in late 2023.

According to Grand View Research, the cloud computing market was worth $368.97 billion in 2021 and will expand at a compound annual growth rate (CAGR) of 15.7% through 2030. Because data centers are crucial to that growth, AMD is well positioned to profit long into the future.

Microsoft 

As the home of brands such as Windows, Office, Xbox, Azure, and LinkedIn, Microsoft has a significant market share in a variety of lucrative sectors. The potency of these brands led its earnings to soar 767% over the last 10 years, and they will likely continue rising for the next decade and beyond.

Microsoft's primary strength and the reason for its consistent growth over the long term is its diversification, which safeguarded its business from short-term declines in specific markets. Strong positions in operating systems, productivity software, gaming, cloud computing, and even social media have led its revenue to climb 80% over the last five years to $198 billion. In the same time frame, operating income has increased by 153% to $83 billion.

In addition to impressive past growth, Microsoft consistently invests in burgeoning markets that tend to pay off over the long term. Most recently, the company was proven right with its 2019 investment of $1 billion in artificial intelligence (AI) start-up OpenAI. The AI company's chat program, ChatGPT, launched in November and wowed the tech world with its ability to engage in human-like dialogue based on prompts. As a result, Microsoft is reportedly considering investing another $10 billion in OpenAI.

The AI market was worth $93.5 billion in 2021 and is expected to expand at a CAGR of 45% through 2030 (per Grand View Research). Along with its position in other booming markets, AI is just another lucrative opportunity to increase Microsoft's likelihood of ongoing success. 

Alphabet 

Alphabet's stock took a beating in 2022, with its dependency on advertising pushing its stock down 39%. Rises in inflation and interest rates led many businesses to slash budgets, with advertising one of the first things to go. However, declines in ad spending are usually short-term in nature, with the market expected to be worth $786 billion by 2026, rising at a CAGR of 13.9%.

Increased demand for ad-supported services, such as streaming, over the last year will likely encourage other businesses to turn to ads to reduce subscription fees. Meanwhile, Alphabet's leading 27.5% market share in digital advertising puts it in a prime position to profit when the market inevitably rebounds.

Moreover, Google is diversifying with its growing position in cloud computing. Google Cloud revenue rose 37.6% in the company's latest quarter, profiting from having the third-largest market share in the booming industry. Comparatively, industry leaders Amazon and Microsoft saw cloud-computing revenue growth of 27% and 20%, respectively, in the same quarter.  

Alphabet shares have risen 252% over the last decade. And in the last five years, the company's revenue has increased 88% to $257.6 billion, with operating income rising 162% to $78 billion. The company has hit some roadblocks over the past year, but it's a growth stock that will likely continue its winning ways.