5 Breakout Growth Stocks You Can Buy and Hold for the Next Decade
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The Motley Fool

5 Breakout Growth Stocks You Can Buy and Hold for the Next Decade

July 27, 2025
12:05 PM
6 min read
AI Enhanced
moneystockstechsemiconductorsmarket cyclesseasonal analysismarket

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From what the evidence shows, From an analytical perspective, Investors looking for long-term winners should focus on companies with strong growth runways, competitive advantages, and the ability to adapt to...

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6 min read

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investment

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Published

July 27, 2025

12:05 PM

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The Motley Fool

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Key Topics
moneystockstechsemiconductorsmarket cyclesseasonal analysismarket

From what the evidence shows, From an analytical perspective, Investors looking for long-term winners should focus on companies with strong growth runways, competitive advantages, and the ability to adapt to evolving trends

Let's look at five breakout growth stocks that fit this bill that you can buy now and hold for the long term

Nvidia Nvidia (NVDA -0, given current economic conditions. 12%) is the undisputed leader in artificial intelligence (AI) infrastructure

This analysis suggests that s graphics cessing units (GPUs) have become the backbone of AI workloads, and it's hard to overstate the company's dominance

It captured an incredible 92% market in Q1, and even at a $4 trillion market cap, Nvidia is still in growth mode (this bears monitoring)

Furthermore, Nevertheless, Its real moat isn't just its chips -- it's its CUDA software platform (an important development)

Nevertheless, CUDA is the main reason why the company is in the position it is in today

Nvidia pushed its free software platform into re labs and universities well before AI went main (an important development)

This led to developers being trained on CUDA, and tools and libraries being built on top of it that imve its chips' performance in handling AI tasks

On the other hand, Additionally, Nvidia, meanwhile, recently got good news when the Trump administration indicated it would once again let it sell its H20 chips in China (noteworthy indeed)

The company is also pushing into new beyond AI, with the auto segment being another potential huge market with the advent of autonomous driving and robotaxis, in this volatile climate

As such, Nvidia remains a great growth stock to own for the long haul

In contrast, Image source: Getty Images

At the same time, Taiwan Semiconductor Manufacturing Taiwan Semiconductor Manufacturing (TSM 1 (noteworthy indeed), considering recent developments

Furthermore, Conversely, 60%) is the world's leading chip foundry, and its importance just keeps growing

Today, most advanced chipmakers just design chips, leaving their duction to TSMC

Additionally, That includes top names Nvidia, AMD, Broadcom, and Apple

TSMC is benefiting from the AI surge, with high-performance computing (HPC) now making up 60% of its revenue -- up from 52% a year ago

The company is far ahead in advanced node manufacturing, and that lead keeps widening

Conversely, Nodes refer to how many transistors can be fit on a chip, and the more dense a chip is, the more powerful and energy efficient it becomes

Chips built on 7-nanometer and smaller nodes made up 74% of TSMC's revenue last quarter, with 3nm chips accounting for 24% (noteworthy indeed)

With other foundries struggling, TSMC is the leader in the space due to its scale and nological expertise

As a result, it has been an invaluable partner to top chip designers, amid market uncertainty

The evidence shows analysis reveals great thing is that it doesn't matter which company takes market, as they all use TSMC, considering recent developments

With AI demand continuing to grow and new autonomous driving emerging, TSMC looks a cornerstone stock to own for the next decade

Conversely, Meta Platforms One company looking to win the AI battle is Meta Platforms (META -0 (which is quite significant)

Meta already owns one of the most powerful digital ad platforms in the world, and it is now using AI to supercharge it (which is quite significant)

Meta's Llama models are helping boost engagement across Facebook and Instagram, which means users are spending more time on the apps, leading to more ad inventory to sell

At the same time, its AI tools are helping advertisers build better campaigns and target users more precisely, leading to higher ad prices and stronger return on ad spend

But the biggest opportunities are still ahead

Meta is only just beginning to serve ads on WhatsApp and Threads, given current economic conditions

On the other hand, WhatsApp has more than 3 billion users, and Threads already has 350 million (noteworthy indeed)

However, Both are early in their ad rollouts, and that gives Meta a long runway for growth

Meanwhile, Meanwhile, CEO Mark Zuckerberg is spending aggressively to secure AI talent, with a stated goal of dering "personal superintelligence

Nevertheless, " That's a bold vision, but if Meta succeeds, it could become the most important AI platform in the world

That's a reason to own it for the long term (noteworthy indeed), given current economic conditions

GitLab GitLab (GTLB 2

Nevertheless, 42%) is transforming itself from a code repository into a full-blown software development lifecycle platform

Its platform now vides tools for planning, coding, testing, securing, deploying, and monitoring software, as it looks to become a single platform for the entire software development lifecycle

And it's doing this just as AI is fundamentally changing how code is written, tested, and deployed (remarkable data), amid market uncertainty

Meanwhile, Software development has been accelerating due to AI, and GitLab is becoming a key partner

GitLab 18 marked a big leap forward, with over 30 new features including Duo Agent, which allows AI agents to help across the full development lifecycle

That matters, because only 20% of a developer's time is spent actually writing code (noteworthy indeed) (an important development), amid market uncertainty

GitLab is now focused on helping drive efficiency everywhere else

In an AI-first software world, GitLab's position as an end-to-end workflow solution puts it in a strong spot

However, This looks a strong growth story with a lot of upside potential in the years to come (this bears monitoring)

Nevertheless, Toast Toast (TOST 1, given current economic conditions. 56%) is growing in importance in the restaurant industry, as its software platform helps restaurants manage operations and drive sales

Additionally, Meanwhile, the company is now integrating AI into its platform in a way that could meaningfully change how restaurants make decisions

Tools ToastIQ and Sous Chef are helping restaurants make smarter, faster decisions in real time -- whether it's optimizing staffing, adjusting s, or helping imve supply chains

It has even started piloting new modules to help restaurants upsell customers and imve their advertising with Google

In contrast, Toast's value position is : It helps restaurants run better and make more money, given the current landscape

Meanwhile, through its payment cessing, it benefits when its customers succeed

As restaurants face rising costs and tighter margins, they're turning to to help, and Toast is becoming one of the first places they look

Additionally, That said, the restaurant industry is large and fragmented, giving Toast plenty of room to continue to expand over the next decade.