There’s no disputing that Meta Platforms (META -6.43%) — formerly known as Facebook — has been an excellent company. Even with its near-50% drop in stock value just since September of last year, shares are still about 1,000 percent above their IPO low set in 2012.
However, past success does not guarantee future performance. The next ten years may be significantly different than the previous ten. Given that Facebook’s main social networking site is beginning to show indications of slowing growth, it’s likely the next ten years for Meta will be unspectacular. It’s probably time to look for names with more verifiable growth potentials rather than continuing to invest in companies on the defensive.
With that in mind, here’s a closer look at two stocks that can truly respond to the question “What have you done for me lately?” They could all be worth more than Meta in 2032.
1. Nvidia
Nvidia is a name that most gamers are familiar with, and it’s often used to market computer graphics cards appreciated by video gamers. Its technology may be found in conventional PCs and laptops as well, although you’ll recognize it more as a brand name for computer graphics cards loved by video gamers. And its grasp on the sector is quite solid. The larger growth engine you might be overlooking with Nvidia, however, is its data center processing sector. Nvidia’s data center revenue for the past quarter was just over $8.3 billion, with around $3.7 billion coming from data center operators seeking for more advanced technology. In reality, data centers are Nvidia’s most lucrative sector, with year-over-year growth of 83%.
This is only the beginning. In fact, the same technology architecture that helps power graphics cards may also be utilized in artificial intelligence (AI) apps, which is an ever-growing market. Polaris forecasts that the AI infrastructure market will expand at a compound annual growth rate of more than 27% between now and 2030.
Nvidia is well-positioned to take advantage of this expansion. Its DGX A100 systems, for example, are created and tailored specifically for the AI market. Enterprises like what it could do for their AI development efforts, ranging from medical imaging to energy management to preventing future epidemics, just to name a few.
2. Adobe
Adobe (ADBE -0.56%) is another technology firm that’s much more than it used to be, despite the fact that few investors are aware of it.
Adobe is a brand that many people are familiar with, since it’s the software that allows web users to manage PDFs (portables document files). Adobe’s Photoshop program arguably created the digital image and creation software industry, while others may be aware of Adobe as the company behind Photoshop. And both are still in operation.
Adobe has expanded its expertise considerably beyond online document management and graphics software in recent years. It’s now involved in businesses that assist companies with web presence optimization on every level. The company’s Experience Cloud, which is based on the cloud, provides tools for customizing a website specifically for each individual visitor. Adobe’s platform manages content creation, e-commerce, and marketing efforts. This technology provides a wide range of services, including site construction and management as well as creative planning and design. In fact, it’s likely you’ve visited a website that was subsequently modified using Adobe’s technologies without even realizing it.
Creative Cloud and Experience Cloud are both subscription services, which is notably interesting. While their monthly charge may appear modest, Adobe doesn’t have to come up with new versions of its software, rebox them, and then hope that consumers pay for an update because of its recurring income model. This changing business paradigm is one of the key reasons why revenue is continuously growing at double-digit rates. The top line is anticipated to improve by around 13% this year before it accelerates to early 15% growth in the next year, illustrating the fact that there’s still a lot of money left to be made.
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