It's hard to imagine that any tech investor doesn't know what Nvidia does. Still, for those who are late to the party or new to investing in general, the technologies giant is a rapidly growing and ingenious company that's primary focus is on Artificial Intelligence. Though that hardly scratches the surface of what Nvidia does. The short version of a long and complicated story is that they have the most advanced data centers in the world, and are helping to create autonomous vehicles among a laundry list of technological advances that make Nvidia a solid buy. We think it's a near-future blue-chip stock and we're not alone. For those who already have this dynamic stock and are looking to expand their portfolio, we have ten stocks to consider that are similar to Nvidia in terms of growth potential.
10. Kratos Defense & Security - KTOS
Kratos Defense and Security is a company that is taking the drone market by storm. It's latest XQ-58A Valkyrie completed test three with one-hundred percent of the test points. While KTOS began working on smaller defense contracts, they've grown exponentially. Known for its satellite technology and target drones, its jet-powered combat drones are a thing of beauty from a financial perspective. Kratos has seen its share of highs and lows over the last year. Yet, their overall growth has been positive in spite of a downward trend at the end of last year.
9. Salesforce - CRM
Salesforce is currently on a slight downward trend, which makes it a great time to buy. This company is providing business solutions based on bringing customer needs and business development teams together to create mutually beneficial information exchanges. Like Kratos, CRM has been on a generally upward trend for the last year. We think their innovative and logical approach to helping businesses meet customer needs is a long term sustainable goal that will only increase the company's value over time.
8. Rapid7 - RPD
Though they're not exactly a household name just yet, RPD acquired Kombat in 2017, and they've been doing great things in the ever-expanding field of cyber securities. As the IoT and the cyber universe in general expand, the threats and risks require constant vigilance, and RPD aids their customers in risk assessment and negation. According to rivertonroll, "A number of institutional investors have recently bought and sold shares of RPD."
7. Splunk - SPLK
As software companies go, Splunk has hit on a winning formula. Its goal is to take data and translate it into useful answers for consumers. This ingenious San Francisco company is taking big data and turning it into functional solutions. Machine-generated data is growing at breakneck speed, but it doesn't do businesses or consumers any good if it can't be translated into useful solutions. That's why we think Splunk is a long term winner.
6. Monolithic Power Systems, Inc. - MPWR
When it comes to solutions for businesses that are only going to expand over time, MPWR is making great strides. This company provides power circuits for everyday technology companies that deal in industries such as automotive, telecommunications, and cloud computing. Since their target client base isn't going anywhere, and they'll never stop needing power circuits, MPWR is a safe bet when you're seeking a company that will only continue to gain value and customers over time.
5. PayPal - PYPL
You see this companies' logo when shopping online, and increasingly they're accepted at brick and mortar stores as well. PayPal is one of those solid investments that isn't going anywhere. However, they're also the first international company that was ever approved to process payments in China, which is a massive market. In our opinion, PYPL is a great growth stock to purchase for 2020.
4. Microchip Technology Inc. - MCHP
At the time of this publication, MCHP has been on a downward trend. They've recently laid-off employees, and things might seem a little bit grim. The truth of the matter is that microchips are a huge market in China, to the tune of twenty billion dollars last year. American companies produce the majority of the microchips in the world, and the current trade issues are causing a downtrend for microchip companies like MCHP. However, the stock market isn't for the faint of heart, and in the long run, we think MCHP will bounce back and even expand. In fact, given the current trade issues with China, they've done remarkably well. Our advice, buy when the prices are low and hold on for a bumpy ride before things get back to their upward trend.
3. Five Below - FIVE
There's no question. Amazon is crushing many of the brick and mortar stores into mortar-dust. However, while other retailers are dying in the digital economy, FIVE is prospering because of their incredibly low prices. Most of this list is made up of digital businesses. There are a couple that we feel are a great choice to diversify out your stock profile with companies that are staying solid in spite of the internet revolution. Though it's a very different type of business than anything else on this list, we feel that Five Below is a fantastic growth stock for 2020 and beyond since consumers are seeking out deals IRL and finding them at FIVE.
2. Sunnova Energy - NOVA
Like Five Below, Sunnova isn't a digital company. However, the Houston based solar energy company has been around for seven years now, and they've only grown. Though NOVA only went public last year, they're continuing to prosper and expand at an exponential rate that isn't likely to stop anytime soon. With the trend toward sustainable energy and the need for more power worldwide, solar companies like NOVA are uniquely poised to take over more of the market. Kiplinger projects as much as a 25% increase in the residential solar market this year and a lot of that profit will go to Sunnova.
1. Amazon.com - AMZN
There's no question that this trillion-dollar company is here to stay. However, if you think of it as primarily a shopping application, then you're selling AMZN short. It invests heavily in AI and technologies because it's an internet business, which is a huge part of how Amazon stays on top. AMZN is buying and even funding new technology creation. With constant expansions and plans to start delivering via drones, you certainly can't buy-in for $3.19 anymore, but the value of Amazon stocks isn't likely to go down over time.
Final Thoughts
Technologies investors who are holding on to Nvidia stocks are likely to see significant returns in the long run. However, a well rounded 2020 stock portfolio should have plenty of variation and growth potential, which you'll likely find in our top ten picks. There's always a risk in the market. Still, these stable properties are all set to do great things over the next year or the long run offering savvy investors the opportunity to increase their portfolio with confidence.
