The professionals who manage Wall Street funds and cater to wealthy investors live and die by their quarterly performance. However, the individual investor can win the long game by focusing on what will matter the most years into the future.
You can't look too far ahead, but there are already early signs of what could be the most impactful investing themes over the next decade. High-potential growth industries in their early innings include artificial intelligence (AI), quantum computing, and genetic engineering, to name a few.
As these opportunities play out, you'll want to consider owning these five monster stocks for the next decade. They carry some risk, but four have outperformed the market and could continue to do so, while the sole laggard might have the highest ceiling of the group.
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1. Nvidia
Nvidia (NVDA -1.34%) is central to the AI revolution. The company's AI chips are the dominant hardware powering the vast data centers in which AI models train and operate. The company and stock have ridden an intense investment cycle across the technology sector to massive growth. Data center buildouts continue to show strength, and more intelligent AI will likely require continuous hardware upgrades to more advanced and efficient chips.
Nvidia's opportunities don't necessarily end there. The company has created a hardware and software ecosystem for developing new technologies, such as autonomous driving and robotics. Nvidia is also rolling out new form factors, including AI computers that can fit on a desk. Nvidia has cemented itself as a central force in AI innovation, and investors should ride that for the next decade.
2. CrowdStrike
Cybersecurity has become mission-critical among enterprises, which potentially face millions of dollars in damages if there is a successful breach. CrowdStrike (CRWD -1.32%) has become a juggernaut with its cloud-based Falcon Platform, which uses AI to deliver cutting-edge security performance. The company generated roughly $4 billion in highly profitable revenue last year, and continues to grow at a nearly 30% rate.
Data by YCharts.
Last summer, CrowdStrike suffered embarrassment when a faulty update caused a massive outage on Microsoft devices. Despite the bad press and ruthlessly competitive dynamics in the security field, the incident has had a minimal impact on its business, which, if anything, shows just how sticky its security platform is. Investors will want to enjoy the ride as CrowdStrike grows its share of an addressable market that could increase to $250 billion by 2030.
3. Alphabet
Google's parent company, Alphabet (GOOG -0.07%) (GOOGL -0.02%), has grown beyond its Google search engine to become a diverse technology behemoth. The appeal of Alphabet stock is that it has short-term and long-term growth opportunities. Today, digital ad revenue from Google Search and YouTube carries the water, while profits from cloud computing are soaring as that segment grows.
That won't change overnight, and, looking further out, there are smaller businesses within Alphabet that could blossom and start making a difference. Alphabet is developing quantum computers, and its Waymo autonomous ride-hailing business is rapidly expanding. These two businesses could eventually help drive the company's next era of growth. The stock has slipped due to regulatory and competitive threats toward its search engine business, but this is more likely a buying opportunity that should pay off well over the next 10 years.
4. Taiwan Semiconductor Manufacturing (TSMC)
Self-driving vehicles, robotics, and almost every new electronic technology require chips. That's why you may want to own Taiwan Semiconductor Manufacturing (TSM -0.99%), the world's leading chip foundry (commonly known as TSMC). The company's revenue share of the global foundry (chip production) market has increased from 58% in Q2 2023 to 67% in Q4 2024. Why? No company has the technology and capacity to produce large quantities of advanced chips like TSMC can.
Data by YCharts
The global semiconductor market is poised to more than double to nearly $1.2 trillion by 2035, and TSMC should directly benefit. The company has some risk due to its proximity to China, which claims Taiwan as its territory. Still, TSMC's dominance and key role in the broader technology sector make it difficult to pass on.
5. CRISPR Therapeutics
Thanks to CRISPR gene editing, healthcare is on the cusp of creating new treatments and even potential cures for conditions. CRISPR Therapeutics (CRSP 1.32%) is a leading player in the technology, which involves targeting and modifying specific genes within DNA. The company has just begun generating revenue on its first product, a joint venture with Vertex Pharmaceuticals, and has a pipeline with several therapies in clinical trials.
These therapies could treat certain cancers, cardiovascular disease, and Type 1 diabetes. These are massive markets; any approval could be a game changer for a company worth just $3.3 billion today. However, these therapies could fail their trials and are still several years away from the market. Therefore, CRISPR Therapeutics is a high-risk, high-reward stock that has lagged the broader market, but could deliver life-changing returns over the next decade if things work out.
