It's hard to beat the growth potential of cryptocurrencies. Ark Invest founder Cathie Wood, for instance, believes that Bitcoin has more than 2,000% in long-term upside. However, some stocks offer comparable, if not superior, room for growth. If you're in search of maximum upside, the following two stocks are worth your attention.
Nvidia (NVDA) is one such stock that has seen a meteoric rise in value. A $1,000 investment in Nvidia five years ago would now be worth over $26,000. Even so, Wall Street analysts predict that there's more than a 30% gain to come in the next year. With Nvidia's market capitalization currently around $2.6 trillion, it may seem hard to imagine the potential for further substantial gains. Nevertheless, there are multiple reasons for optimism about Nvidia's future.
The primary catalyst driving Nvidia's remarkable performance—the demand for high-end GPUs to power AI technologies—is not only expected to be sustained but also to grow stronger over the coming decades. Gone are the days when Nvidia's fortunes depended solely on gaming markets. Today's demand is driven by an arms race for AI-enabling components, and Nvidia’s GPUs are in high demand. BIS Research estimated that AI industry spending on semiconductors reached around $15 billion last year. This spending has surged in 2024, more than doubling Nvidia's revenues over the past 12 months.
BIS Research projects a 32% annual spending increase on AI semiconductors for the next several years. With an estimated 90% market share in AI GPUs, Nvidia is poised to capture most of this growth. Furthermore, Nvidia benefits from the rise of cryptocurrency mining, as many of its GPUs are designed for this purpose. If any sector could surpass the entire value of the crypto market, it would be AI—and Nvidia is well-positioned in this regard.
While Nvidia's market cap may limit another 1,000% rise in its stock, another company with massive potential is Nu Holdings (NU). This fintech firm, largely unknown to many investors, has a market cap nearing $70 billion. Nu operates exclusively in Latin America, with services accessible only via smartphones. A decade ago, Nu transformed Latin America's banking sector by offering services online, eliminating the need for costly physical branches. This strategy allowed Nu to lower costs and outcompete traditional banks on pricing and offerings, as well as innovate quickly.
For instance, when Nu launched its Nu Cripto platform, which allows users to buy, sell, and transact in various cryptocurrencies, it attracted 1 million users within months. Such innovations explain how Nu has grown from zero customers a decade ago to over 100 million today. And the company is still expanding. Latin America has a population of over 650 million, and Nu's penetration is remarkable; more than half of Brazilian adults are now Nu customers. Nu is replicating this success in Mexico and Colombia.
Analysts forecast a 44% sales growth this year, followed by 30% in 2025, and anticipate double-digit percentage growth rates for the next decade. This long-term growth potential makes Nu one of the most compelling stocks, with the capability to match or even surpass the performance of leading cryptocurrencies.
