There are some stocks you can buy that are almost guaranteed to grow over the long term thanks to the innovative nature of their businesses. The tech market is an excellent place to find such stocks, as the industry is in a near-constant state of development. As a result, investing in tech companies active in high-growth sectors can be an effective way to ensure you're well off by retirement.
In 2023, that means investing in companies pushing markets like virtual/augmented reality (VR/AR), artificial intelligence (AI), and cloud computing forward. These technologies are likely to affect the designs and innovation of countless devices going forward, suggesting their industries are nowhere near hitting their ceilings. Consequently, investing in the companies responsible for their future growth could offer substantial gains over the long term.
Here are three top stocks that could help make you rich by retirement.
1. Apple
Apple (AAPL 0.09%) shares have long been a haven for investors looking for a reliable long-term buy. The company's stock climbed about 269% in the last five years and over 1,000% in the last decade, offering consistent growth thanks to its priority on delivering quality products. The iPhone maker's strategy has attained immense brand loyalty from consumers, which boosted its ventures into new markets over the years.
As a result, Apple's expected launch of a new VR/AR headset has vast potential. According to a report from Bloomberg last month, the device will debut in June and use an iPad-like 3D interface to display a long list of features, such as gaming, fitness, sports, entertainment, reading, and more. Anticipation for the device is steadily growing, with Oculus VR (now owned by Meta) founder Palmer Luckey praising Apple's coming headset and calling it "so good" in a recent tweet.
The VR/AR market is currently dominated by tech giants Meta and Sony with their respective headsets. However, Apple's history of entering new markets and quickly rising to dominance could see it trounce the competition and lead the $31 billion industry in the coming years.
Alongside a history of consistent growth, Apple stock is an excellent option to boost your portfolio in time for retirement.
2. Advanced Micro Devices
As a leading chipmaker, Advanced Micro Devices (AMD 2.85%) gives investors a chance to back several high-growth markets. The company's hardware powers platforms and devices across the tech industry, such as game consoles and cloud services. Meanwhile, the tech giant is making moves to grow its position in artificial intelligence.
AMD's data center chips have seen it partner with companies like Microsoft and Alphabet, powering their respective cloud platforms. According to Grand View Research, the cloud market hit $484 billion in 2022 and is projected to continue expanding at a compound annual growth rate of 14% through 2030. The sector's development is great news for AMD, which could see demand for its chips soar in the coming years. Additionally, a boom in AI is likely to boost the cloud market as more companies use the technology to enhance their platforms.
Moreover, Microsoft is reportedly helping AMD bolster its AI chip expansion in an effort to create an alternative to the current market leader, Nvidia. If true, the partnership could help AMD gain a larger share in the booming sector.
AMD's stock has soared around 700% since 2018 and more than 2,000% since 2013. Steady growth and the company's ability to supply its chips across multiple areas of tech make its stock a no-brainer buy for those looking for long-term gains.
3. Amazon
As a leader in e-commerce and the cloud market, Amazon is another attractive stock that has the potential to skyrocket over the next decade.
Amazon holds a leading 38% market share in e-commerce in the U.S., with the second-largest share going to Walmart with 6.3%. The company's position at the top of the industry is encouraging, considering the online retail sector is projected to hit $4 trillion this year. Meanwhile, e-commerce sales only made up about 15% of all retail purchases last year, indicating the market still has plenty of room for growth.
The e-commerce market and Amazon's related segments were hit hard last year amid an economic downturn. However, easing inflation suggests the challenges won't last forever, with the company's dominance likely to see it flourish in the long term.
Along with a leading market share in cloud computing with its platform Amazon Web Services, Amazon's stock is an attractive buy for those looking for a solid investment to hold over the next decade or beyond.
