Who wouldn’t want to retire with a substantial nest egg? A recent CNBC survey revealed that only 16% of retirees reported having a $1 million portfolio, but it is achievable by making smart investment choices and consistently setting aside money for the future. While investing in index funds tracking the S&P 500 is a safer long-term strategy, selecting individual stocks can potentially yield higher returns, though at a higher risk. For those willing to embrace that risk, here are three innovative tech stocks to consider that could significantly increase your wealth over the next decade.
ASML
ASML (NASDAQ: ASML) stands out in the technology landscape with an unparalleled competitive edge. It manufactures the essential lithography equipment used in semiconductor production, including the highly sought-after extreme ultraviolet (EUV) lithography systems. ASML’s technological advancements put it in a class of its own, making it extremely difficult for competitors to catch up. With increasing demand for sophisticated chips fueled by AI, ASML is poised to thrive, potentially elevating its market capitalization from $332 billion to over $1 trillion in the next ten years as global semiconductor production experiences a boom. Additionally, ASML offers a modest dividend, currently yielding about 0.8%, which can be reinvested for enhanced growth.
ARM Holdings
ARM Holdings (NASDAQ: ARM) presents another exciting investment opportunity, especially for those keen to capitalize on the artificial intelligence revolution. Unlike many of its competitors, ARM doesn’t produce its chips; instead, it licenses its innovative technology to major companies like Apple and Nvidia. ARM’s architectures are particularly favored in smartphones for their energy efficiency and are increasingly sought after in data centers to save on power costs. With a strong business model and a promising outlook fueled by AI developments, ARM could deliver consistent profit growth of at least 15% annually, which positions it well for a prosperous future.
The Trade Desk
The shift from traditional advertising to digital channels represents a tremendous growth opportunity, and The Trade Desk (NASDAQ: TTD) is ideally situated to harness this trend. As a leading independent demand-side platform for digital advertising, The Trade Desk has consistently outperformed its peers and is likely to maintain its momentum with the launch of its new AI-powered platform, Kokai. This innovative tool helps advertisers optimize their campaigns more effectively, adapting to consumer behavior in real-time—an essential feature as digital marketing continues to evolve. Given its robust history of growth, The Trade Desk is well-positioned to quadruple its earnings per share over the next decade, making it an attractive addition to any investor’s portfolio.
Investing $250,000 across these three stocks could effectively set you on a path to a $1 million portfolio by 2034, provided they achieve their projected growth. While investing in individual stocks carries inherent risks, the potential for impressive returns makes these tech stocks standout options for anyone looking to build wealth for retirement.
Keen on taking your investment strategy to the next level? Consider diversifying your portfolio with these promising stocks, and you might just find yourself on the road to financial independence.