10 Best Growth Stocks to Buy for the Next Decade

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4. Amazon (NASDAQ:AMZN)

Number of Hedge Fund Holders: 369

Market Cap: $2.90 trillion

Bill Ackman’s Pershing Square says Amazon “operates two of the world’s great, category-defining franchises,” online retail and Amazon Web Services, and has argued that AWS growth is speeding up on AI demand. Cathie Wood’s Ark Invest believes AWS can grow into a business with a trillion dollars a year in revenue, and points to shoppers who use Alexa spending noticeably more per order.

The latest quarter gave both something to cite. Sales at Amazon Web Services rose 39%, the cloud unit’s fastest growth in nearly five years, and the unit earned a wider profit margin than it did a year earlier. That helped lift Amazon’s operating margin to 13.9%, the highest in the company’s history. Amazon said the timing of Prime Day, which moved into the second quarter this year, held back its third-quarter sales growth.

The margin matters because Amazon is spending heavily to add computing capacity, and higher profit on the cloud side helps pay for that build-out. Chief Executive Officer Andy Jassy said AWS is projecting revenue growth above 40% in both 2027 and 2028, which would mean the speed-up is meant to last rather than fade after one good quarter.

Read our analysis on Amazon (AMZN) here: Amazon (AMZN) Trades at 24 Times Forward Earnings. Can Its Cash Engines Fund the Robotaxi Bet?

3. Alphabet (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 275

Market Cap: $3.54 trillion

Berkshire Hathaway, a firm known for holding stocks for years, has made Alphabet one of its largest holdings. Bill Ackman’s Pershing Square sold its entire stake in what he called a tactical reallocation into other holdings, but wrote, “We are very bullish long term on Alphabet.” The latest quarter gives both views something concrete.

Google Cloud revenue rose 103% to $30.7 billion, and Alphabet said sales of its own TPU computing systems were also a meaningful contributor. Chief Executive Officer Sundar Pichai said the cloud’s growth was powered by huge demand for the company’s AI infrastructure and AI solutions. The cloud backlog, which is revenue customers have contracted for but Alphabet has not yet recognized, stood at $561 billion. Operating income at the cloud unit more than tripled, and Alphabet expects TPU system sales to scale further in the fourth quarter.

The rest of the company is moving too. Pichai said the Gemini app has passed one billion monthly users. Search, the older business, kept growing too, with query growth at its highest in five years. To the bulls, chips, models and a huge user base together make the story hold.

You can read our analysis on Alphabet (GOOGL) here: Alphabet (GOOGL): Does Its Valuation Account for Waymo’s Potential?

2. Microsoft (NASDAQ:MSFT)

Number of Hedge Fund Holders: 273

Market Cap: $4.04 trillion

Bill Ackman’s Pershing Square disclosed a new Microsoft position, saying Microsoft 365 and Azure are two of the most valuable franchises in enterprise technology and together produce most of its profit. Pershing said it was able to buy near the market’s average valuation, and described such holdings as “some of the most dominant long-term compounding franchises.” Wedbush analyst Dan Ives calls Microsoft one of his favorite large-cap tech names to own over the coming years.

The cloud numbers give that view something solid to rest on. In the fiscal first quarter, Azure revenue rose 48%, and for the first time Microsoft reported the unit’s sales in dollars rather than only as a growth rate. Total revenue grew 19%, and operating income rose 21%, and the company said results exceeded its own expectations.

Chief Executive Officer Satya Nadella said customers are getting more capability, choice, control and cost efficiency across the whole stack. The bulls read that as proof Microsoft can sell AI to customers it already has, using the same relationships that built its software business. It also returned cash to shareholders through dividends and buybacks.

Our latest analysis on Microsoft (MSFT) is available here: Microsoft (MSFT): Can Security Bundles Generate More Profit per Customer?

1. Nvidia (NASDAQ:NVDA)

Number of Hedge Fund Holders: 285

Market Cap: $4.27 trillion

Gavin Baker, who runs Atreides Management, has owned Nvidia for about two decades and argues that its sales are limited by how many chips can be built, not by demand. Brad Gerstner, whose Altimeter Capital holds Nvidia as its largest position, has pointed to data center spending forecasts, saying “that’s not speculative, that’s purchase orders.” Cathie Wood’s Ark Invest keeps buying on dips, calling the stock a bargain given how fast earnings are growing.

The company’s last report may explain why. Revenue in the fiscal second quarter reached $96.2 billion, up 106% from a year earlier, with data center sales making up the vast majority. Nvidia guided the current quarter to about $108 billion, and said the outlook assumes no data center compute sales to China. Nvidia says it already holds purchase orders from every major hyperscaler, AI cloud and system maker.

The bulls care most about what comes after. Management gave a preliminary view that revenue for fiscal 2028 will grow about 70%, and described that outlook as limited by supply rather than demand. It also expects Vera Rubin, its next generation of systems, to start contributing meaningfully to data center sales this quarter.

Read our analysis on Nvidia (NVDA) here: NVIDIA (NVDA) Leverages AI Growth to Expand Its Autonomous Driving Opportunity

READ NEXT: Nvidia Is Becoming More Than a Chipmaker. Can it Sustain Its Exceptional Margins? and Nvidia vs. Microsoft: Is NVDA’s Explosive Growth Being Undervalued?

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