In my view, some of the best stocks are the ones that have strong underlying companies and exceptional growth possibilities. They are the kinds of stocks that you could comfortably invest a large amount of money in with confidence that you will likely make market-beating returns in the future.
Here are two of my picks for the best stocks you can invest $10,000 in right now.
Find the strongest players in the quickest-growing areas. That is usually a great way to find the best stocks to purchase. There is no question Nvidia should be in this group.
One of those fast-growing areas is gaming. The company’s GPUs are the gold standard for powering gaming computers. The business seems likely to have a very big winner with its new RTX350 entry-level graphics card that will soon be released. Nvidia is also going to release a monster graphics card for the higher-end market segment.
The company’s GPUs are also more suited for AI apps running on servers located in data centers. This is actually an even faster expanding market for Nvidia than gaming is.
Then there is the metaverse. Nvidia already released Omniverse, its platform for 3D design and collaboration. CEO Jensen Huang believes that Omniverse Avatars has an addressable market of around $40 billion. The opportunities out there for Nvidia’s GPUs in the metaverse are even better.
Those are not Nvidia’s only potential drivers of growth, though. Its self-driving car tech might make the company a lot more cash over the next ten years and beyond.
Unlike Nvidia, MercadoLibre did not deliver great gains in 2021. Its shares dropped nearly 20%. But that helps make the stock’s valuation a much more attractive one considering its high growth prospects.
MercadoLibre’s terrible performance this last year was not due to underlying issues with its company. The company’s net earnings soared 72.9% on a constant-currency basis in Q3 of 2021. Earnings increased more than sixfold. And Q3 was a difficult quarter for year-over-year comparisons.
The future seems to be a bright one for the company. MercadoLibre’s e-commerce platform has been attracting new buyers. Retention levels are rising. The e-commerce penetration level in Latin America might double by 2025.
Don’t think of MercadoLibre as just an e-commerce business, though. Its Mercado Pago fintech and Mercado Envios logistics companies are rocking as well. The fintech opportunity should be highly attractive in light of the large amount of people in Latin America without any banking services.