Can a stock convert $1,000 into $5,000 by 2030? This kind of return needs a stock that can grow your money by 38% annually for the next five years. It is difficult to find a stock that can sustain this kind of growth, but a cheap growth stock can give you such returns.
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Three stocks that could turn $1,000 into $5,000 by 2030
You could consider buying these stocks at a dip and selling them at a set target and then moving on to pursue the next growth target.
AMD stock
Advanced Micro Devices (NASDAQ:AMD) stock is the underdog in the artificial intelligence (AI) chip space. While Nvidia grew by leaps and bounds, AMD stock fell 12% this year as it entered the AI race late. Many analysts expect the data center AI chip demand to slow in 2025 as companies absorb the current capacity. However, buying and holding AMD stock at its low of US$127 creates an opportunity to enter early in the next growth cycle that could bring 100% return in less than a year.
This growth cycle could be as early as 2025, driven by AI personal computer and networking chip demand. You could buy the current dip and consider selling the stock once the price crosses $260. You can reinvest the profits from AMD to pursue the next growth trend.
Magna International
Magna International (TSX:MG) has been awaiting recovery for four years. The automotive component supplier was badly hit by the decline in electric vehicle (EV) sales as well as overall passenger vehicle sales. One of its clients, Fisker, even filed for bankruptcy as high inflation and rising interest rates dampened consumer spending. Magna even wrote off losses from Fisker.
However, automotive demand could recover in the United States in the coming three years under Donald Trump’s presidency, which favours gasoline cars over EVs. Whether it be gasoline cars or EVs, Magna will benefit from the recovery in passenger vehicle demand.
Now is a good time to buy Magna while it trades near the 2020 level of $61. A recovery could bring a significant jump in Magna’s share price and send it above $100 in 2025. Magna is not a stock worth holding for the long term as it operates in a cyclical market. You could consider selling the share above $100 and lock in 60% capital appreciation.
BCE stock
BCE (TSX:BCE) could also help you in your five-times growth journey as the telecom stock is closer to turning its downtrend into an uptrend. The industry challenges, high debt, and a company-wide restructuring pulled the stock price to its 14-year low of $33. The stock price could recover to $60, an 80% upside, as restructuring benefits unfold and profits return. In the meantime, you can enjoy a 12% dividend yield.
However, closely monitor the stock as it could fall further before it jumps. The recovery may be delayed, but it will come as 5G adoption drives AI at the edge and creates a world of self-driving cars and drone deliveries by 2030.
Investor takeaway
The above three stocks have strong growth potential in the next two years. You could grab the buy-the-dip opportunity and strive to convert $1,000 to $5,000.
