There are exciting trends happening in the world of technology these days. Artificial intelligence (AI) promises to create tremendous wealth for investors who hold the right stocks. The following companies are growing their revenues at high rates that could easily support a doubling in their share price in the next five years, if not sooner.
If you have $500 to commit to a long-term investment strategy, here's why Reddit (RDDT 2.22%) and Snowflake (SNOW -1.83%) could be smart buys today.
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1. Reddit
The social media advertising market is currently valued at about $234 billion, according to Statista, and growing. Reddit is benefiting from this tailwind, but what makes the stock a particularly compelling growth stock to buy is the company's data from user discussions, which is valuable for AI model makers. The stock is up more than 40% year to date, putting it on course to rise substantially over the next five years from continued growth of the platform.
With more than 110 million daily active users, Reddit is generating enormous amounts of authentic, human-generated texts, which can be used for training large language models (LLMs) It signed a deal with Google in 2024 to provide data for training the search giant's AI models. Reddit's "other" revenue, including data licensing, has increased from $14 million in 2022 to $135 million on a trailing-12-month basis.
Reddit generates most of its revenue from advertising. Ad revenue jumped 84% year over year in the second quarter of 2025, driven by higher engagement as the company improves search and discovery through AI tools like Reddit Answers.
The stock has a fairly clear path to double in value within the next five years. The shares trade at a price-to-sales (P/S) ratio of 25, which is reasonable for a high-growth digital advertising business. The Wall Street consensus estimate has revenue growing at an annualized rate of 33% over the next five years.
As Reddit continues to report high revenue growth and higher earnings as margins expand, the stock could easily double by 2030 and perhaps sooner depending on what P/S multiple investors are paying for the stock down the road. Investors will likely continue to reward the stock with a premium valuation due to the company's momentum in attracting users and monetizing its data, creating the potential for diversified revenue streams beyond advertising.
2. Snowflake
The amount of data being created is growing fast, expected to reach 175 zettabytes this year, according to the IDC. This is an opportunity for Snowflake's data cloud platform as demand for AI-powered analytics continues to grow.
Snowflake is a leader in data warehouses that companies use to analyze, store, and even share data with other companies. Its trailing-12-month revenue has more than doubled over the last three years, and the company reported a 32% year-over-year growth rate in product revenue in the most recent quarter.
There were concerns about where Snowflake would competitively fit in a world that is seeing growing competition from Microsoft, Databricks, and others in the data analytics software market. But Snowflake continues to execute and launch new products that drive solid growth.
Snowflake's Cortex AI helps reduce AI errors, also known as AI hallucinations, which can be attributed to its focus on high-quality data. The company says that 40% of its customers share data with other companies. This is a key feature of using Snowflake that also helps companies get access to better data for use with AI.
Investors are undervaluing Snowflake's innovation; it launched about 250 new capabilities in the first half of 2025. This is driving momentum. Management estimates its addressable market will double from $170 billion in 2024 to $355 billion by 2029, which should support a much higher share price.
Wall Street analysts expect Snowflake's revenue to grow at an annualized rate of 23% over the next five years, which is more than enough to support a doubling in the stock's value. The stock trades at a P/S multiple of 17.9 -- below its previous three-year average of 19.8. With Snowflake also improving free cash flow as the business scales, investors are likely going to double their money by 2030.
