Today, I provide five growth stocks that I think will perform well in 2022 and beyond. These stock picks cover enormous secular growth trends that should flourish over the long term.
Nvidia is the first stock on the list. It's easy to see why some investors would shy away from Nvidia at these levels. The stock price has delivered over 67,000% returns since going public in 1999. A $10,000 investment would be worth approximately $6.7 million today. But the company is firing on all cylinders, and when you look under the hood, you will find that its future looks very bright, which can arguably justify the premium share price. Nvidia has its hands in nearly every secular tailwind imaginable:
- Data centers
- Cloud computing
- Cybersecurity
- Space exploration
- Video gaming
- Online gambling
- Augmented reality (AR)
- Virtual reality (VR)
- Mixed reality (MR)
- Autonomous driving
- Electric vehicles
- Genomics
- Esports
- 5G
- E-commerce
- Cryptocurrency
- Artificial intelligence (AI)
- Metaverse
- Big data
Tesla has made a historic run over the past couple of years, but with Elon Musk at the helm, the future still looks very bright. The company continues to grow rapidly while improving net profit margins and cash flows. The EV super cycle is just getting started, and Tesla is poised to be top dog. Not only is Tesla a top autonomous and electric vehicle manufacturer, it is, in my opinion, also the best artificial intelligence company in the world.
Snowflake offers what it calls a "data warehouse-as-a-service" (DaaS), a cloud-based data storage and analytics solution. Think "big data." Interestingly, Snowflake is not a SaaS company since its revenue is over 90% consumption based. Snowflake reduces cost and improves agility. Its data platform is unique in that it is not built on an existing big data platform. In addition to big data and analytics, I believe Snowflake is positioned well to create a unique digital advertising moat, which I discuss in detail here. I have been a fan of this stock since pre-IPO, and I have high conviction long term.
Unity Software is best known for gaming. It provides tools and software to assist developers in game creation and marketing. In 2019, over 50% of the top 1,000 mobile games were created using Unity. Unity has players in 195 countries, so it's literally a global company. Unity powers billon-dollar mobile games like Pokémon Go and Angry Birds.
But augmented reality (AR) and virtual reality (VR) are why I personally own the stock. Think metaverse! However, Unity is actually quite diverse in terms of its offerings and industry segments. Here are some other areas Unity works in outside of gaming:
- Automotive, transportation, and manufacturing
- Film, animation, and cinematics
- Architecture, engineering, and construction
- Government and aerospace
- Gambling
UiPath (NYSE:PATH) is a global software company focused on robotic process automation, also called RPA. The company's software enables organizations to automate data entry and repetitive tasks. RPA technology makes it simple for businesses to build, deploy, and manage bots. These software robots emulate human actions and provide many benefits. Examples include:
- Increased production times
- Reduction of costs
- Increased employee creativity and innovation
- Improved efficiency
- Increased employee happiness and retention
- Improved process quality
- Higher employee productivity
- Improved customer service
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