Visa (V) Shows Promised to Deliver Mid-Teens Annualized Earnings Growth for Next Decade

Sands Capital, an investment management company, released its “Sands Capital Technology Innovators Fund” Q1 2025 investor letter. A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned -10.4% (net) in the first quarter compared to a 9.4% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. The choice of securities in the software sector was the primary factor negatively impacting relative performance. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its first-quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as Visa Inc. (NYSE:V). Headquartered in San Francisco, California, Visa Inc. (NYSE:V) is a payment technology company. The one-month return of Visa Inc. (NYSE:V) was 3.99%, and its shares gained 33.64% of their value over the last 52 weeks. On May 27, 2025, the stock of Visa Inc. (NYSE:V) closed at $359.30 per share, with a market capitalization of $688.3 billion.

Sands Capital Technology Innovators Fund stated the following regarding Visa Inc. (NYSE:V) in its Q1 2025 investor letter:

“Visa Inc. (NYSE:V) operates the world’s largest retail electronic-payment network by transaction volume. The business reported strong quarterly results in January, with earnings rising 14 percent, beating expectations, driven by lower incentives, higher cross border revenue, and a lower tax rate. At its investor day, our confidence was reinforced in the company’s potential to sustain mid-teens annualized earnings growth for at least the next decade, supported by expansion into commercial payments, money management, and value-added services. We also see capital structure optimization as a lever to extend growth, as the business has room to prudently expand leverage to enable additional buybacks and acquisitions.”

Is Visa Inc. (V) the Best Blue Chip Stock to Buy for 2025?

A close-up of a credit card being swiped on a payment terminal, reflecting the company’s payments technology.

Visa Inc. (NYSE:V) is in 6th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 165 hedge fund portfolios held Visa Inc. (NYSE:V) at the end of the first quarter, which was 181 in the previous quarter.  In Q1 2025, Visa Inc. (NYSE:V) reported $9.5 billion in net revenue, up 10% year-over-year. While we acknowledge the potential of Visa Inc. (NYSE:V) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Visa Inc. (NYSE:V) and shared billionaire Mason Morfit’s stock picks with highest upside potential. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.