NVIDIA has been one of the hottest stocks on the market in recent years, as shares of the semiconductor giant have soared noticeably thanks to impressive demand for artificial intelligence (AI) chips deployed in data centers. However, a closer look at its returns over the last decade tells us that it may have made some investors millionaires during this period.
For example, an investment of just $3,700 made in Nvidia stock a decade ago is now worth just over $1 million. So investors smart enough to put that kind of money into Nvidia stock at that time and continue to hold it all these years are probably millionaires now.
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NVDA data by YCharts
The good thing is that the company has now found a solid catalyst in the form of AI and may be able to maintain its impressive growth in the future as well.
However, Nvidia is now the largest company in the world, with a market capitalization of nearly $3.6 trillion at the time of writing. Therefore, it now seems difficult to expect the astonishing returns it has posted over the last decade to be replicated in the future. That’s why investors looking for the next big growth stock that could contribute to a million-dollar portfolio may want to look at other companies that are currently in their early growth phases and are on track to take advantage of lucrative market opportunities. final market.
Here’s a closer look at two of those potential candidates.
The demand for AI software is expected to grow rapidly in the future. According to ABI Research, the AI software market could record 30% annual growth through 2030, generating annual revenue of $391 billion by the end of the forecast period. Invest in C3.ai(NYSE:AI) can help investors make the most of this huge opportunity.
C3.ai offers enterprise artificial intelligence software solutions to its clients and the good thing is that its business has been gaining strength in recent quarters. The company’s revenue in the first quarter of fiscal 2025 (ended July 31) increased 21% year over year to $87 million. That was an improvement over the 11% revenue growth it posted in the same period last year, indicating it is gaining more customers and landing more business.
It turns out that C3.ai struck 71 deals during the quarter, an impressive 122% increase from the prior-year quarter. Meanwhile, the company also improved its revenue potential by participating in 52 new pilot projects, an increase of 117% from the previous year. It’s worth noting that most of the business C3.ai gets is done through its partnerships with major cloud computing providers, such as AlphabetIt’s Google, Amazonand microsoft.
More specifically, 51 of its deals last quarter came through its partners, an increase of 155% from the same period last year. Closed 40 deals through Google Cloud alone. C3.ai offers its enterprise AI toolset through its partners, enabling customers to build, deploy and scale generative AI applications that can be used to improve business processes across multiple industries.
The success that C3.ai is having through its partner model explains why the company is focused on further strengthening this channel. It recently announced an extension to its partnership with Microsoft, through which C3.ai’s entire suite of enterprise AI applications will be available in the Azure Marketplace. What’s more, both companies will work together on product development and marketing, which should help enhance C3.ai’s reach in the enterprise AI software space.
C3.ai’s press release also says the deal “establishes C3 AI as the preferred AI application software provider on Microsoft Azure.” Therefore, it was not surprising to see investors react positively to this development as it could help C3.ai record faster growth in the future.
The company expects $382.5 million in revenue in fiscal 2025 at the midpoint of its guidance range, which would represent a 23% increase over fiscal 2024. Analysts expect the company to maintain a healthy double-digit revenue growth over the next two years. years too.
AI Revenue Estimates for Next Fiscal Year Data According to YCharts
However, the possibility of C3.ai seeing faster revenue growth cannot be ruled out, considering the pilot projects it is involved in, its presence on major cloud computing platforms, and the growing demand for cloud computing software. artificial intelligence. That is why investors may consider buying C3.ai stock and holding it for the long term as it appears to have the potential to generate healthy profits and even help them achieve their goal of building a million-dollar portfolio.
The digital advertising market is already quite large, generating an estimated $680 billion in revenue last year. By 2028, the size of this market is expected to exceed $965 billion, with further growth expected in the following years. Alphabet of the technological giants, Metaplatformsand Amazon are the dominant players in this huge industry, accounting for more than 60% of global digital advertising revenue last year.
However, there is a company that is giving these big boys a chance. The commercial table(NASDAQ:TTD) provides a programmatic advertising platform that allows marketers and brands to automate their ad inventory purchases, optimize campaigns, and improve audience targeting in real-time with the help of data.
The company’s revenue in the first nine months of 2024 increased 27% to $1.7 billion. Its earnings during the same period saw an identical jump to $1.07 per share. Meta Platforms, on the other hand, has seen a 22% increase in revenue in the first three quarters of 2024. Meanwhile, Google’s advertising revenue has increased 11% in the first nine months of the year.
Trade Desk is therefore taking share away from its biggest rivals in the digital advertising market. This is not surprising, as the adoption of programmatic advertising within the digital advertising space is growing rapidly. Market research firm TechNavio estimates that the programmatic advertising market could generate incremental revenue of $725 billion between 2024 and 2028, at an annual growth rate of more than 38%.
The Trade Desk is therefore at the beginning of a strong growth curve that could help it maintain healthy growth levels for a long time. The company’s gross revenue is expected to increase more than 26% in 2024 to $2.46 billion, also followed by solid growth in the coming years.
TTD Revenue Estimates for Next Fiscal Year Data by YCharts
The stock has generated outstanding returns since going public just over eight years ago, turning a $100 investment into more than $4,100 during this period.
We’ve already seen how big the digital advertising market is and the potential revenue opportunities available in programmatic advertising. As a result, The Trade Desk’s strong growth is likely to continue beyond the next two years and could also repeat its multi-bagger performance in the long term. That’s why it seems like an ideal option for a million-dollar portfolio.
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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. Alphabet executive Suzanne Frey is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool ranks and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and The Trade Desk. The Motley Fool recommends C3.ai and recommends the following options: long $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has a disclosure policy.
Should you forget about Nvidia and buy these 2 shares of millionaire manufacturers? was originally published by The Motley Fool
