2 Monster Stocks to Hold for the Next 20 Years

Choosing the right growth stocks can significantly impact your retirement savings. It's essential to focus on companies that are taking advantage of major economic trends. This article highlights two remarkable firms that are poised to deliver exceptional returns for investors willing to be patient over the next couple of decades.

1. Tesla

Tesla (TSLA) has been one of the standout stocks, achieving incredible performance over the last ten years. For instance, if you had bought shares when Tesla launched the Model S in 2012, your investment would have skyrocketed by an astonishing 16,900% as of now. While Tesla continues to have room for growth in car sales, its advancements in artificial intelligence (AI) might become its most valuable asset in the long term.

Some investors mistakenly believe that a stock cannot keep rising after substantial gains. Tesla's recent share price increases are driven by optimism about a rebound in electric vehicle (EV) sales and the upcoming robotaxi service. Additionally, Tesla is involved in various innovative projects that could provide significant value in the future.

A prime example is the development of Tesla's humanoid robot. The company has invested extensively in training its AI systems, facilitating the creation of products like Optimus. CEO Elon Musk has even stated, "I think the long-term value of Optimus will exceed that of everything else at Tesla combined." This sentiment is noteworthy considering Tesla generated $12 billion in profit on $97 billion in revenue last year, mostly from vehicle and energy sales. With many companies integrating robots into their operations annually, the demand for Optimus could be substantial over time.

Looking ahead, there's also the anticipated release of the Cybercab, officially announced in October. Tesla's management is optimistic about launching this robotaxi service in Texas and California as soon as 2025, pending regulatory permissions. This endeavor could further enhance Tesla's production capacity and profitability.

Investors are already factoring in a recovery in EV sales and the potential Cybercab launch, with automotive revenue growth returning last quarter. Analysts predict Tesla's revenue growth will accelerate to 16% by 2025. Strong companies often exceed expectations, which is why holding onto this remarkable stock could yield significant returns over the next 20 years.

2. Archer Aviation

Another innovative company to consider is Archer Aviation (ACHR), which is positioning itself as a leader in the urban air mobility sector. This market opportunity is expected to exceed $1 trillion by 2040, as per Morgan Stanley. Archer has established partnerships with major airlines to introduce its services in key U.S. cities.

The need for urban air transportation is rising, driven by efforts to alleviate air pollution and reduce traffic congestion. In late October, the Federal Aviation Administration announced its Special Federal Aviation Regulation (SFAR) for powered-lift aircraft, paving the way for pilot training in electric aircraft capable of vertical take-off and landing.

CEO Adam Goldstein noted during the company's Q3 earnings call, "We see genuine commitment from our airline partners to this electric air taxi vision, investing both capital and leadership resources with us as we lay the groundwork for future air taxi services across America."

Archer is developing production facilities and working with Southwest Airlines and United to launch air taxi services. In September, the company signed a new agreement with Japan Airlines and Soracle (a joint venture of Sumitomo) to explore similar services in major Japanese cities.

Currently, Archer has an impressive order book valued at over $6 billion, based on fulfilling specific conditions from each client, with an indicative cost of $5 million per aircraft. The company's financial health remains solid, ending Q3 with $502 million in cash. Archer anticipates commencing commercial air taxi operations in the UAE as soon as late 2025.

While the stock has experienced volatility in recent years, it's crucial to maintain a long-term outlook. With a market capitalization of just $3.4 billion at the time of this writing, the potential upside over the next two decades could be substantial.

Investing, Stocks, Technology