Got $5,000? 2 Top Growth Stocks to Buy That Could Double Your Money.

By Investor Empires On Dec 12, 2024

If you have money you don’t need to pay bills or reduce debt, there are excellent opportunities in the technology sector. Artificial intelligence (AI) and cloud computing are generational investment opportunities that can deliver significant returns for investors who invest in the right stocks. Here are two that could double your money over the next five years.

Nvidia He is the pioneer in Graphics processing unit (GPU) The market is far ahead, but it cannot control 100% of the market. Its top GPU competitor is Advanced micro devices (NASDAQ:AMD)Which sells chips in many markets. The stock has returned 237% over the past five years and could double again by 2030.

AMD’s revenue grew 18% year over year in the third quarter, driven by strong demand for the company’s data center graphics processing units and central processing units (CPUs). It was a strong quarter, considering that both business segments continue to suffer from weak revenue performance.

The company’s gaming and embedded segments, including sales of chips used in industrial markets, posted a sharp decline in revenue this year. However, the headwinds affecting these sectors will turn into tailwinds.

AMD is preparing to launch new Radeon gaming GPUs as early as 2025, which could boost the gaming sector. Embedded segment revenues increased 8% sequentially, indicating that a recovery is underway. Management sees design successes gaining momentum, indicating long-term growth potential.

Right now, the data center business is providing enough growth to be a major catalyst for the stock price through 2025. By the time the entire AMD business is firing on all cylinders, the stock could be trading much higher than it is now.

Increasing demand for advanced data center chips used in artificial intelligence It’s very high margins. That’s why the current Wall Street consensus has AMD’s earnings per share growing at an annual rate of 42%. The stock is currently trading at a high price-to-earnings (P/E) ratio of 40, so even allowing for a decline in the P/E multiple, the stock could double by 2030, if not sooner.

alphabet‘s (Nasdaq: Google) (NASDAQ:GOG) Google is one of the most powerful brands in the world. The company has seven online services with more than 2 billion users, a strong advantage in the $740 billion digital advertising market. Alphabet shares have more than doubled over the past five years, and opportunities in artificial intelligence and cloud computing could boost earnings growth enough to double again by 2030.

Alphabet is seeing strong momentum across the business, including search, as new AI features improve the usefulness of this everyday tool for users. Management says it sees AI features improving user engagement and satisfaction, which bodes well for long-term growth in ad revenue. Alphabet reported a 15% increase in revenue in the third quarter, with advertising revenue up 10%.

Meanwhile, Google Cloud benefits from Alphabet’s heavy investments in AI infrastructure, including Gemini AI models and data centers. Google is the No. 3 cloud provider behind Amazon Web services and Microsoft Azure, according to Synergy Research, but it is gaining market share in a growing $313 billion cloud market. In line with this opportunity, Google Cloud revenue increased 35% year-over-year in the latest quarter.

More importantly, management’s focus on operating efficiency and improving profitability at Google Cloud resulted in its profits rising 36% compared to the same quarter last year. This is significant growth for a stock that recently traded at a forward P/E of just 22.

The stock’s conservative valuation reflects uncertainty over the antitrust ruling against Google in August. As a remedy, the Justice Department wants Google to divest its Chrome web browser among other measures to prevent Google from gaining an unfair advantage over the competition in online search.

Regardless of the outcome, Alphabet still has a wide competitive moat, based on the millions, if not billions, of people who use products like Gmail, Search, and YouTube every day. It is this large user base that provides the means to generate billions in advertising revenue and positions Google well for long-term growth.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Susan Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Ballard He has positions at Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has Disclosure policy.

Got $5000? 2 of the best growth stocks you can buy that can double your money. Originally published by The Motley Fool