Investing in companies that are about to experience accelerated growth can set you up for monstrous stock market returns. It’s even better when you can buy these stocks at reasonable valuations relative to their earnings growth potential.
With that in mind, here are two stocks that could deliver exceptional returns over the next five years.
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Actions of Advanced microdevices(NASDAQ: AMD) it’s up 49% over the past six months and is near new highs. There could be other gains for investors as AMD targets a $1 trillion artificial intelligence (AI) computing market.
AMD didn’t grow as fast as Nvidia in the graphics processing unit (GPU) market, but it doesn’t need to catch its rival for investors to do well with the stock. Demand for AMD’s Instinct data center GPUs is accelerating, contributing to 22% year-over-year growth in its data center segment in the third quarter.
AMD expects its revenue growth to continue to accelerate over the next few years. A catalyst in 2026 is its Helios rack system. Helios aims to bridge the gap with Nvidia’s system solutions for data centers. It weighs 7,000 pounds and has multiple chips, including AMD MI455 GPUs and EPYC central processing units (CPUs). It provides robust memory bandwidth that is ideal for AI inference, where models learn to make predictions from fresh data without human intervention.
AMD’s MI350 GPUs drove much of its growth in 2025, while OpenAI and Oracle are lining up to deploy future MI450 GPUs in 2026. These top customers for AMD provide near-term revenue growth visibility.
However, AMD will need to demonstrate its ability to be a default AI compute provider for other hyperscalers to move the stock. In this regard, it has already revealed plans to launch its MI500 GPUs in 2027, offering a 1,000x increase in AI performance. This signals to investors that the company has a wide range of products that they expect to drive long-term growth.
Analysts’ consensus estimate calls for AMD’s earnings to grow at an annual rate of 45% over the next few years, which is in line with management’s long-term outlook for annual revenue growth of 35%. Strong demand for data center chips is expected to drive higher margins and generate stellar earnings growth.
With AMD stock trading at 33 times this year’s estimate, investors are getting solid value and could earn monstrous returns on their investment for years to come.
New chips from Nvidia and AMD will require an increase in power to run, but data centers are already experiencing a power shortage. This deficit is expected to widen in the coming years. This is an opportunity for CleanSpark(NASDAQ: CLSK)a leader Bitcoin miner holding a portfolio of over 1.3 gigawatts of power, land and data center assets to meet this demand.
CleanSpark’s mining business has a strong track record. The company holds more than 13,000 bitcoins generated from its mining operations. It’s a profitable business, generating earnings per share of $1.25 in fiscal 2025, which will prove valuable as it invests to address the AI opportunity.
Management wants to adapt its data center portfolio to meet the need for high-performance computing. Although it is late for this opportunity compared to other miners, the massive shortage of available data center power should leave ample opportunity for CleanSpark.
CleanSpark has secured a 285 megawatt site in Texas where it will build an AI data center for hyperscalers. It also has a 250-megawatt site in Sandersville, Georgia, and other locations around Atlanta, with a total capacity of more than 100 megawatts.
These megawatts are very valuable. For example, CoreWeave signed a 15-year contract worth 11 billion dollars Applied digital last year. This was for 400 megawatts of data center capacity. In December, Cabin 8 signed a 15-year, $7 billion deal with Anthropic for an initial capacity of 245 megawatts.
The main risk for CleanSpark is execution for construction timelines, where it is critical to stay on schedule in bringing these facilities online. Offsetting this risk is the lucrative Bitcoin mining business, not to mention the fact that the stock is cheap, trading at just 12 times earnings.
Investors are essentially paying a fair price for the mining business while getting the opportunity of AI infrastructure for almost no premium. Over the next five years, investors could see substantial returns if management successfully secures more deals with hyperscalers for its data center pipelines.
Before buying stock in Advanced Micro Devices, consider the following:
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John Ballard has positions in Advanced Micro Devices, Bitcoin and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Bitcoin, Nvidia and Oracle. The Motley Fool has a disclosure policy.
2 Monster Stocks in the Making to Buy and Hold was originally published by The Motley Fool
