From nuclear energy to robotaxis to digital banking, big opportunities lay ahead.
The three stocks below are each positioned to benefit from these major trends.
In every bull market, there are stocks that underperform. In every bear market as well, there are certain companies that grow immensely. No matter where markets head over the next decade or two, the three stocks we'll discuss here have such exciting growth potential that they're a buy in any market environment.
There's a nuclear renaissance going on right now, and some experts believe that's creating a $10 trillion opportunity.
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"[N]uclear energy has, in many ways, been recently 'rediscovered' amid surging electricity demand," observes a recent report from Bank of America. Surging electricity demand, of course, is a result of a massive data center build-out to support the rapidly growing needs of the AI industry. Nuclear is an ideal choice to meet this challenge. "Compared with other energy sources, [n]uclear offers reliable baseload power, a smaller carbon footprint, and a higher energy return on investment," concludes Bank of America's report.
The biggest issue with nuclear is that it can take a decade or more to get larger conventional plants online. NuScale Power's (NYSE: SMR) small modular reactors (SMRs), meanwhile, are quicker and cheaper to deploy, with the option to expand the system over time as needs grow. There are only two SMRs operating globally right now, and it's not clear how SMR adoption will ultimately pan out. But with a market capitalization of just $4.2 billion, NuScale Power is a very attractive high-risk, high-reward option.
Much of Tesla's $1.3 trillion valuation is tied up in its exposure to autonomous vehicles. More specifically, investors are increasingly bullish on the company's robotaxi division, which some experts believe is targeting a $10 trillion global opportunity.
Rivian Automotive (NASDAQ: RIVN), meanwhile, has a market value of only $18 billion. Sure, the electric vehicle maker doesn't have nearly as much production capacity as Tesla, nor nearly the same brand awareness. But the company recently launched its first affordable vehicle: the R2, with a base price under $50,000. Shortly after the R2 went into production, Uber Technologies placed an order for up to 50,000 R2s to power its robotaxi division.
Rivian is no Tesla. But its robotaxi exposure warrants a much higher valuation.
Image source: Rivian.
Many investors have yet to hear of Nu Holdings (NYSE: NU). That's because the company primarily does business internationally in markets that include Brazil, Mexico, and Colombia.
While most of Latin America's banks operate physical branches, Nu entered the market by storm in 2013 as a purely digital bank. Since then, the company has grown like a weed. In 2024, the company reached 99 million users. today, it has 135 million users. The company turned profitable in 2023. And since that point, earnings have grown substantially every year. After a brief correction, shares now trade at just 19.6 times earnings, a discount to the market overall despite its attractive long-term growth runway.
There are some issues with Nu stock right now. The company has already deeply penetrated its most valuable markets. More than half of all Brazilian adults, for example, are already Nu customers. Competition for its core services is also heating up. Still, Nu shares don't deserve to trade at a discount to the overall market. This is easily a stock you can buy and forget about for a decade or two.
Bank of America is an advertising partner of Motley Fool Money. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nu Holdings, Tesla, and Uber Technologies. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.
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