Key Points
Nvidia continues to report impressive earnings as AI demand heats up.
Sandisk is growing faster than Nvidia and has secured multiyear deals with top customers.
Amazon is gaining market share in key industries like e-commerce, cloud computing, advertising, and AI.
Investors don't have to look for small, hidden growth stocks to beat the S&P 500 over long stretches. Some of the most well-known companies have been doing that for years, and some of those same picks look like they can extend their rallies.
Buying and holding solid companies with strengthening fundamentals has been a winning formula for long-term investors. These three stocks fit the bill and are worth holding for the next 10 years.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
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Nvidia
Nvidia's (NASDAQ: NVDA) GPUs have become the defining piece of the AI trade. Its chips are essential in data centers that want to keep up with hyperscalers' demands. The stock is up by more than 800% over the past five years, and while the past year hasn't been as fruitful, the stock is still delivering solid returns.
Its returns should accelerate, thanks to its recent earnings report. Nvidia continues to amaze with a 106% year-over-year revenue surge in its fiscal 2027 second quarter. That was an 18% sequential jump, and it's this type of growth that makes a stock a buy-and-hold candidate over many years.
Nvidia CEO Jensen Huang cited a "golden age of new AI labs and start-ups" that are accelerating demand for chips. He also touted physical AI coming online as another major catalyst.
All of this growth is also coming with better margins. Net income grew by 126% year over year, outpacing revenue growth in the process. Nvidia closed out the quarter with a 62% net profit margin as its chips continue to fly off the shelves.
Sandisk
Sandisk (NASDAQ: SNDK) has established itself as a key part of the memory boom. Its 3,000% return over the past year caught most investors by surprise. The positive Nvidia earnings suggest that Sandisk's rally isn't over, but the company's attractive valuation and underlying fundamentals also imply that higher returns are on the way.
The company is actually growing faster than Nvidia while crushing guidance by wide margins. Sandisk earned $8.97 billion in its fiscal 2026 fourth quarter and only guided for up to $8.25 billion in the previous quarter.
The 51% sequential growth rate comes as Sandisk secures multiyear partnerships with its customers. Those deals offer more revenue visibility, with Sandisk mentioning strong financial growth and shareholder returns are expected to carry through fiscal 2030 at a minimum.
Just like Nvidia, Sandisk is also achieving this growth while boosting net profit margins. Net income was up by 91% sequentially. It closed the quarter with a 77% net profit margin.
Amazon
Amazon (NASDAQ: AMZN) has been gaining market share in multiple key industries. Its online marketplace still brings in the majority of its sales, but the tech giant has also emerged as the largest cloud computing provider.
This positioning has helped it benefit from the rising demand for artificial intelligence. Amazon Web Services revenue has been accelerating for multiple quarters, including a 37% year-over-year jump in Q2. That was the highest growth rate for Amazon Web Services in more than four years.
The company has also been gaining market share in online advertising, which helps with net profit margins. Advertising revenue was up by 26% year-over-year, and operating income jumped by 43% year over year.
All of this impressive growth comes at a time when Amazon trades more like a value stock than a growth stock. It is only valued at a 21 P/E ratio, while it commanded a P/E ratio in the 30s earlier in the year. Solid fundamental growth and a sluggish start to the year explain the low valuation.
As Amazon gains market share in its key industries while expanding into AI through agentic AI and chips, the company has a good shot at outperforming the S&P 500 in the long run.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy.