When the market is raging bull, growth stocks are usually the most rewarding. They are simply the stocks for good times and in the United States of America there are way more good times than bad. Hence the famous Warren Buffett quote “never bet against America”.
Investors looking for stocks with the potential to return insane (over a 1000%) ROIs, mostly do so in the basket of growth stocks. For in the words of Michael Dell, “Innovation is the lifeblood of a thriving business.”
At the heart of every rewarding growth stock is innovation. It is this innovation that build thriving businesses which in turn produces insane ROIs for investors.
The challenge, however, is that with the promise of high rewards comes high risks and that is why growth investors undertake extensive due diligence before investing.
Not every innovation produces a thriving business.
In today’s and tomorrow’s market, artificial intelligence is one of the leading force of innovation. It’s no doubt unlocking new opportunities, opening new markets and driving growth across various industries.
According to Next Move Strategy Consulting, “the global Artificial Intelligence (AI) Market size was valued at USD 95.60 billion in 2021 and is predicted to reach USD 1,847.58 billion by 2030, registering a CAGR of 32.9% from 2022 to 2030”
If you are interested in investing in growth stocks with strong AI exposure, you should obviously have NVIDIA, Tesla, AMD, Apple and Microsoft in your portfolio. Those need no mention.
Going beyond the obvious, here are two growth stocks you should not miss out on:
1. Salesforce (NYSE: CRM)
Salesforce has always been a darling among technology stocks. The Consumer Relationship Management (CRM) market leader has continued to pursue growth through innovation and acquisitions.
CRM business is steadily growing, it is expected to grow from $71.06 billion in 2023 to $157.53 billion by 2030, at a cumulative average growth rate of 12%: that’s doubling its market size in 7 years.
Salesforce is a expanding its already thriving business through its strong artificial intelligence innovation and positioning, giving it a foothold in the AI market.
In 2016, the company released Einstein, which embedded AI directly into the Salesforce platform, giving customers access to AI-powered predictive apps in its sales, service, and marketing clouds.
And recently in 2023, the company took its AI offering to another level with the launch of Einstein GPT, a generative AI CRM technology designs to deliver AI-created content for sales agents, marketers and developers.
Salesforce AI expansion has enabled it raise prices (something it has not done for the past seven years) an average of 9% on its cloud services. A move that should boost revenue and increase its already impressive profit margin.
The company’s stock has equally been rewarded as it’s up almost 70% YTD.
Salesforce is a relatively low risk growth stock with a lot of room for steady growth.
2. Crowdstrike (NASDAQ: CRWD)
Crowdstrike is a fast-growing cloud-based cyber security company. It offers Endpoint Protection Platform solutions to enterprises, helping protect their internet-connected devices from cyber attacks.
Conventionally, enterprises rely on on-premise solutions to protect their connected devices, however, there is an ongoing market shift to cloud-based solutions power by artificial intelligence.
Crowdstrike has establish itself as a leading force with its AI-powered Cloud-based cyber security architecture design to deliver advanced detection and remediation capabilities.
According to Market.us, the cloud security market is expected to grow from $20.54 billion in 2022 to $148.3 billion by 2032, registering a CAGR of 22.5% over the next 10 years (between 2023-2032).
And Crowdstrike currently has a $35 billion market cap and a 12 months-trailing revenue of roughly 2.4 billion.
The company recently launch a generative AI cybersecurity platform, Charlotte AI. Charlotte AI is designed to automate threat detection and prevention tasks.
Over the next decade, the company is well positioned for a massive leap in revenue and earnings, given the enormous $150 billion total addressable market (TAM), and its market standing supported by AI.
Despite the challenging macro economic environment faced by the company since 2022, it managed to increase its client base by 41% and revenue growth by 54% in its 2023 fiscal year.
With AI at the core of CRWD cloud security offering, the company has a lot of room for explosive growth over the next decade.
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I’m a Technology Stock Analyst, with focus on companies developing cutting-edge techs. Keeping track of cutting-edge techs, companies and stocks is what I do almost everyday. And I love it. Whether it’s artificial intelligence, 5g, or autonomous vehicles; I’m all in.
