If you are looking to deploy capital heading into the new year or have fallen behind with our current holdings, keep reading. The good news is that the compounding magic of investing works, whether off of a large base or one that’s been cut in half. For those looking to invest for a brighter future and regain the wealth declinefrom bad investments, here are three stocks to consider investing in for the long-haul.
Key Points About This Article:
- Here are three top options long-term investors look for stable and consistent long-term returns may want to consider to grow one’s wealth over time.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Phillip Morris (PM)
Philip Morris International (NYSE:PM) may not be a stock every investor will want to hold, for various reasons. The cigarette maker may be considered a more defensive stock in this market, and it is, relative to other high-growth plays. However, the company’s 4.2% dividend yield and its relative consistency may provide portfolios with the kind of stable base to build off of for the long-term. And over the past five years, this stock is up more than 50%, not including dividends paid over this time frame.
I think that given the company’s relatively attractive valuation and its shift toward smoke-free products like Iqos and Zyn could entice more investors to consider this stock on the merits of its fundamentals. Certain billionaire investors like Stanley Druckenmiller’s Duquesne Family Office have been attracted to this name, with this particular fund loading up on nearly 250,000 shares of PM stock this past quarter. Additionally, Ken Griffin’s Citadel Advisors bought 1.79 million shares, now holding 2.9 million shares worth $352.4 million at the time of the fund’s last filing. So, there’s big money chasing the returns Philip Morris has to offer, and that makes sense.
Philip Morris’ Q3 organic revenue rose 11.6% to $9.9 billion, largely driven by an 8.9% increase in smoke-free products like Zyn. While the company’s cigarette shipments only rose 1.3%, it’s clear that investors are pricing in he company’s future growth coming from a “better” product mix, for society and the company as a whole.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) is a leader in the AI server market, and is one that’s certainly been hit hard by a range of allegations this year spurred by a short-seller report from Hindenburg research. Allegations of accounting impropriety led the stock to decline from a peak of around $120 per share in Q1 to less than $20 per share last month.
However, Super Micro’s recent climb toward the $45 per share level suggests this server company, which has utilized its direct liquid cooling systems to dominate this portion of the market, could be in for another nice ride higher. The company’s server storage systems allow for up to 40% energy savings and 80% more efficiency in terms of space. And notably, these DLC server farms are projected to grow at a rate of around 30% annually for the next decade. In a sense, Super Micro is a company in the right place at the right time. That is, if you believe the hype around AI right now.
The company’s accounting issues may be nearing an end, and Super Micro’s incredible growth driven by continued adoption of Nvidia and AMD chips should bolster the company’s bull case over the long-term.
Nvidia (NVDA)
Speaking of Nvidia (NASDAQ:NVDA), the high-performance chip maker remains one of the top growth stocks in the market, and is quite a divergent pick from Philip Morris on this list. That said, I think a well-diversified portfolio should hold a mix of defensive and high-growth stocks, so here we are.
Nvidia’s incredible performance has continued this past quarter, with the company exceeding fiscal Q3 2025 expectations with diluted EPS of $0.81 and record revenue surpassing $35 billion. Indeed, with Nvidia’s quarterly earnings now approaching the $1 per share level, and expectations that these earnings could rise to around $5 per share next year, calls for NVDA stock to hit $200 per share next year remain intact.
I continue to be impressed by Nvidia’s performance, which has continued despite much tougher year-over-year comparisons. If demand for the company’s new suite of chips, including its Blackwell GPUs, remains intact into 2025, this is a stock that could certainly see much more upside ahead. Nvidia’s long-term outlook remains strong as the company leads the AI revolution forward.
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