Fortunes have been made in recent years with these soaring stocks.
Get rich quickly. Many investors want to accomplish this goal. However, it’s easier said than done.
What’s the key to achieving a fortune in a relatively short time? Finding the right stocks.
While it’s difficult to predict which ones will be the biggest winners of the future, hindsight is 20/20. These three stocks turned $10,000 into more than $250,000 over the last five years.
1. Celsius Holdings
Celsius Holdings (CELH -4.74%) markets a line of fitness and energy drinks. Although it faces stiff competition, Celsius has executed its growth strategy superbly since entering the market in 2005.
An initial investment of $10,000 in Celsius five years ago would be worth more than $316,000 today. At one point in May 2024, the investment topped $889,000. The company doesn’t pay a dividend, so all of these impressive gains stemmed from share-price appreciation.
There are several factors behind Celsius’ remarkable success. Perhaps the most important one is the strong overall growth in the U.S. energy drink market. However, the company has driven much of this growth. In particular, health and wellness trends have contributed to customers desiring zero-sugar energy drinks with proven performance, and that’s exactly what Celsius has delivered.
Don’t be fooled by the company’s big sell-off in 2024. The steep decline resulted largely from lower growth due to the company’s distribution partner and minority owner PepsiCo building up its inventories too much last year. This will only be a temporary issue, though. I predict Celsius will continue to be a winner for investors over the long run.
2. Nvidia
You probably aren’t surprised to see Nvidia (NVDA 0.89%) on the list. Nvidia has grown into the second-largest company, based on market cap, thanks to surging demand for its graphics processing units (GPUs).
If you invested $10,000 in Nvidia five years ago and didn’t sell any shares, you would have over $284,000 today. Most of that total (nearly $283,000) stemmed from share-price appreciation, with the rest generated by the company’s small dividend.
There’s no secret as to why Nvidia’s shares have taken off. The company’s GPUs have enjoyed strong demand in gaming systems and data centers for years. However, OpenAI’s launch of ChatGPT in late 2022 ignited a generative artificial intelligence (AI) boom that’s still ongoing. Nvidia’s chips are the gold standard in powering AI models.
I don’t think this boom will be over anytime soon. It could even accelerate with Nvidia’s launch of the new Blackwell GPU platform. CEO Jensen Huang recently told CNBC that the demand for Blackwell chips has been “insane.” Look for Nvidia to keep delivering crazy good returns.
3. Super Micro Computer
Super Micro Computer (SMCI -2.39%), commonly referred to as Supermicro, was a small-cap maker of servers and storage systems five years ago. Today, the company’s market cap hovers around $28 billion.
How much would an investment of $10,000 in Supermicro five years ago be worth now? Nearly $255,000. Investors would have had a much greater nest egg earlier in 2024 — over $618,000 by March 7. However, the stock has fallen roughly 58% below its high, wiping out much of the enormous gains.
Margin pressure and allegations of accounting manipulation by a short-seller have taken a toll on Supermicro’s share price. But the same AI tailwind propelling Nvidia continues to blow for Supermicro, too.
I’m not as bullish about Supermicro as I was in 2023 and earlier this year. Will I be surprised if the stock rebounds? Not at all. However, I wouldn’t bet on Supermicro turning an investment of $10,000 into anywhere close to $255,000 over the next five years again.