Nvidia's business has been scorching hot over the past year as the rapid growth in artificial intelligence (AI) resulted in escalated demand for the company's chips. Enthusiasm over that demand helped generate life-changing returns for investors totaling more than 28,000% over the past decade. Given that its valuation has already climbed over $3 trillion, replicating this growth going forward is exponentially tougher. Luckily, for new investors, there are plenty of other good growth stocks to consider for the future beyond just Nvidia.
Three stocks with promising growth prospects that have generated 10x returns in the past 10 years include Microsoft (NASDAQ: MSFT), Palo Alto Networks (NASDAQ: PANW), and Advanced Micro Devices (NASDAQ: AMD). Here's why these stocks can still be good buys in the years ahead.
1. Microsoft
For years, Microsoft has been one of the top tech stocks to own. It maintained that status by continuing to evolve over the years, branching into different industries. From computers to gaming to cloud computing and now AI, the company always seeks out new opportunities to get larger and more diverse. That's a quality investors should look for when choosing a growth stock.
That focus on growth enabled this already large business to further expand. When the company last reported earnings in April, its revenue rose by 17% year over year to $61.9 billion for the first three months of the year. Many of its segments generated double-digit growth during the period. And not only did its top line grow, but Microsoft's net income also rose by 20% year over year during the quarter to $21.9 billion.
Microsoft is still in the early innings of its AI-powered growth, with Copilot+ computers and AI-fueled office software potentially being future growth catalysts for the business for years to come. With solid financials and many growth opportunities, Microsoft still looks like a phenomenal stock to own for the long haul. Its 10-year returns, including dividends, total 1,160%. And on this list of impressive growth stocks, that's the lowest return.
2. Palo Alto Networks
One stock that has outperformed Microsoft is Palo Alto Networks. It doesn't pay a dividend, so its gains are strictly due to its rising share price. In 10 years, it has risen by more than 1,250%. Palo Alto is a leading cybersecurity company and as big tech has grown in size, it benefited from a growing need to keep data safe.
Since fiscal 2020, the company has more than doubled its revenue to $6.9 billion in fiscal 2023 (which ended on July 31, 2023). This fiscal year, Palo Alto projects its revenue will grow by approximately 16%.
And there are still more opportunities ahead for the company, especially as AI threats create new challenges for businesses. Palo Alto has its own AI capabilities that can help fight these new threats and identify them in real time.
For investors looking to get in on the enthusiasm for AI, it's not just all about chatbots, AI chips, and data centers. Cybersecurity is a huge growth opportunity as well, and with Palo Alto being a big name in the industry, it can be a top AI stock to own for the foreseeable future.
3. Advanced Micro Devices
Advanced Micro Devices, also known as AMD, is in the chipmaking business along with Nvidia. Although it hasn't generated nearly as impressive growth or even returns, it's still a top growth stock to own when it comes to AI. Customers will need alternatives to Nvidia's high-priced chips, and AMD could fill that need.
The stock has generated some impressive returns for investors, totaling 3,870% in 10 years, thanks to some explosive growth; AMD's sales have skyrocketed from $4 billion in 2015 to $22.7 billion this past year. And that's without AMD's sales taking off due to AI yet. During the first three months of the year, AMD's revenue only rose by 2% year over year, coming in at just under $5.5 billion.
The company is working on developing new AI chips to try to take some market share from Nvidia in the future, but it's a multiyear plan for AMD. CEO Lisa Su says, "AI is clearly our No. 1 priority as a company, and we have really harnessed all of the development capability within the company to do that."
Although AMD's chips may be a little late to the game, they could provide the company with a huge growth catalyst if they can accelerate its growth rate, which is why it may not be too late to buy the stock today.
Should you invest $1,000 in Microsoft right now?
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Microsoft, Nvidia, and Palo Alto Networks. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
