At some point in life, all of us have dreamt of getting rich. While this dream might seem too good to be true, it is possible with the right investment avenues.
Building wealth requires patience, which allows for investors to benefit from the miracle of compounding. By investing in stable companies, and holding high-return stocks for the long-term, investors can take home massive gains as one’s portfolio companies see revenue and earnings grow over time. Yes, it is possible to get rich with stocks.
Artificial Intelligence is a top trend right now, and is the latest place many are searching for wealth. Now, nobody gets rich overnight. However, if you choose the right stocks to invest in, the idea is that you can become rich in the future.
The stock market has finally started to show signs of recovery, with many investors in high-upside areas seeing big gains. So, for those looking for high return stocks that can make you rich, here are three stocks to buy right now.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) is the biggest competitor of Nvidia (NASDAQ:NVDA) in the semiconductors space. Accordingly, AMD has remained somewhat under the radar for some time.
Nvidia’s shadow is big, and it’s one of the biggest companies in the world, recently surpassing the trillion-dollar valuation mark. Accordingly, with NVDA stock valued at such high levels, I think AMD stock provides relative upside worth considering.
With Artificial Intelligence taking center stage across multiple industries, AMD is set to gain. The company offers a wide range of chips and also produces powerful central processing units and data processing units. Its chips are powering the cloud platforms of Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL). This clearly means that the company has the potential to meet the changing needs of top tech companies in the world today. Notably, AMD has a partnership with Microsoft which I think can lead to market share gains over time.
AMD revealed its advanced GPU, MI300X this month, looking to compete directly with Nvidia’s hardware. Notably, Amazon Web Services will also be testing it for potential use. If there a partnership with Amazon (NASDAQ:AMZN) materializes, investors will certainly see a boost in the company’s valuation. That said, AMD’s upside is not limited to AI. Its chips also help run some of the top gaming consoles in the industry today.
AMD stock is trading around $116 per share today and is up roughly 80% year to date. It is inching closer to its 52-week high of $132, but has the potential to hit a new high anytime in the coming months.
Amazon (AMZN)
You can’t talk about wealth-building stocks without mentioning the e-commerce giant Amazon. It has been around got a long time now, becoming one of the largest companies in the world today. Amazon is certainly one of the high-return stocks that have already generated significant returns for investors over the past five years, and while many are worried that its growth has slowed, I believe there is plenty of untapped potential left with this tech behemoth.
Currently, AMZN stock is trading around $130 per share, up 51% on a year-to-date basis. However, it is still down from its 52-week high of $146, and even more from its all-time high. Notably, AMZN stock was trading for $12 in 2013, meaning it has provided massive growth for investors over the past decade. With the online sales market estimated to grow by 50%, Amazon still has plenty of room to run. The company reported strong first-quarter earnings and an increase in profit margins. It saw earnings of $15.79 per share and revenue of $108.5 billion.
AI isn’t new for this e-commerce giant, as Amazon has already widely implemented this technology to handle customer service, logistics and offer product suggestions. It has also expanded generative AI services in AWS, and launched CodeWhisperer recently. This technology allows developers to determine the kind of code they need and the service can produce it.
Amazon has the necessary capital, infrastructure as well as talent that can help the company gain on its competition in terms of AI. Despite slower growth, AWS is leading the market today, meaning as the company continues to add new services to the platform, it could gain even greater dominance over its peers in the industry.
Tesla (TSLA)
With EVs set to become the future, Tesla (NASDAQ:TSLA) is poised to continue to provide big gains for investors.
The EV giant already enjoys an early-mover advantage in the industry, but has proven it’s also very good at making EVs. The company is a leader in the battery electric vehicle segment, posting impressive margins relative to its peers. This margin advantage allowed the company to take on price cuts during the recent period of high inflation, taking market share from its peers (as seen by impressive numbers).
Additionally, Tesla is now expanding its charging network, and has some of the top automakers including General Motors (NYSE:GM) and Ford (NYSE:F) as customers. GM and Ford will pay Tesla for its charging network, and other incumbent auto makers are expected to follow suit.
By adding more companies to its EV charging network, Tesla will be able to continue to dominate this sector. Tesla has already produced 920,500 vehicles in 2023, which is a sign that it is on the right trajectory to produce 1.8 million cars this year. It also shows that the demand for its cars is rising, and we could see even better numbers in coming quarters. Tesla remains one of the high-potential stock investments to consider.
Notably, ARK Invest has a price target of $2,000 in 2027 for this stock. Thus, even if TSLA stock reaches the halfway point of this target, investors stand to gain plenty from holding this investment for the next four years.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.