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Growth stocks abound in a wide range of sectors, although they tend to fall in and out of favor with investors, depending on the macro and/or market environment. Quality growth stocks can augment your portfolio returns with time and offset the more value-oriented businesses in your basket of buys.
If you are looking for top growth stocks to buy and hold well into the 2030s, here are three no-brainer names to consider right now.
Amazon (NASDAQ: AMZN) continues to underscore the strength of its business and deliver fantastic growth for long-term shareholders. Over the three-year trailing period alone, the stock has delivered a total return of close to 173% for investors. Pull that time frame back 10 years, and you’re looking at a total return of more than 600%.
Even though past performance isn’t a promise of future returns, Amazon has proven its ability to thrive in a wide range of macroenvironments and capitalize on new growth waves. Amazon Web Services (AWS) remains Amazon’s primary profit engine and currently accounts for approximately 30% of the global cloud infrastructure market.
That said, advertising is Amazon’s fastest-growing segment, with annualized revenue for the segment set to exceed $60 billion in 2025. By leveraging its unique first-party data and expanding into upper-funnel ads via Prime Video and streaming partnerships, Amazon’s ad business could easily approach $100 billion annually within a few years.
Amazon is investing heavily in AI across its entire ecosystem, and its planned capital expenditures are projected at $125 billion in 2025. Amazon’s growing AI ecosystem includes its custom silicon chips, Trainium for AI model training, and Inferentia for running models. These chips aim to provide high performance at a lower cost compared to competitors like Nvidia and are used to power internal services such as the Rufus shopping assistant.
To sustain its e-commerce moat, Amazon has deployed over 1 million robots in its warehouses, and management projects this will save up to $4 billion annually in fulfillment costs. These efficiencies, alongside a shift to regionalized warehouse models, are expected to significantly lift operating margins for the retail segment by 2030.