3 Stocks to Catapult Your $100K Into a Cool Million: June 2024


  • Explore three millionaire-maker stocks that could turn $100K into $1 million by 2034 through massive growth potential.
  • Apple (AAPL): Dominant in multiple massive markets with immense brand value and fast-growing services business.
  • ASML Holding (ASML): Over 90% market share in key chipmaking equipment, critical for advanced semiconductor manufacturing.
  • Alphabet (GOOG, GOOGL): AI and infrastructure leadership position it to benefit tremendously from the next wave of innovation.
Millionaire-Maker Stocks - 3 Stocks to Catapult Your $100K Into a Cool Million: June 2024

Source: Faces Portrait / Shutterstock.com

These so-called “millionaire-maker” stocks have the potential to turn a $100,000 investment into $1 million over the next decade. As legendary Fidelity fund manager Peter Lynch explained, a “tenbagger” stock appreciates 10 times its original purchase price, generating a 1,000% return for early investors.

Lynch made a fortune for mutual fund investors by spotting tenbaggers early. Today’s forward-thinking stock pickers aim to identify the next stocks poised for +1,000% upside over the next 10 years.

The key is finding reasonably valued stocks tapping into massive market opportunities. According to value investor Mohnish Pabrai, the “magic” compound growth rate is 26% annually. At that rate, money doubles every 3 years. So a stock growing earnings at 26% for a decade can easily become a tenbagger.

The 3 stocks in this article exhibit strong growth drivers that could potentially catapult a $100K investment to over $1 million by 2034. With vision and rigorous analysis, ordinary investors may uncover millionaire-maker stocks in everyday observations. The next tenbagger could be under the radar right now.

Apple (AAPL)

Apple logo on a pink and purple background. AAPL stock.
Source: Moab Republic / Shutterstock

Apple (NASDAQ:AAPL) has a reputation that engenders great expectations, and this is a confidence that is not misplaced. This tech titan just keeps growing — both its top and bottom lines. Thanks to the incredible loyalty of its customers and its ecosystem of products and services, Apple’s earnings per share shot up 280% over the past decade.

And this growth seems far from over. For example, Apple continues to expand into new areas like financial services, augmented reality, artificial intelligence, streaming entertainment and more. These initiatives have already started bearing fruit — Apple hit over $23 billion in fiscal Q2 2024 from services alone. As a result, service-generated revenues accounted for slightly over 20% of the $90.8 billion total revenue.

Shareholders are also benefiting from Apple’s massive buyback program. The company just approved another $110 billion of share repurchases, an impressive increase over the previous $90 billion. By reducing the total share count, buybacks boost earnings per share. So as Apple keeps raking in profits, a shrinking share base will help EPS climb even more steeply. With leadership in multiple massive markets, immense brand value, and a fast-growing services business, Apple is clearly among the top millionaire-maker stocks.

ASML Holding (ASML)

Closeup of mobile phone screen with ASML logo on computer keyboard
Source: Ralf Liebhold / Shutterstock

ASML Holding (NASDAQ:ASML) has already seen a significant surge, but it still has plenty of room to grow. As a result, it easily makes the list of the top millionaire-maker stocks, allowing investors to at least get close to 10Xing their investment.

ASML is the world’s leading supplier of chip-making equipment, holding over 90% market share in lithography systems for advanced nodes below 10nm. Its extreme ultraviolet (EUV) lithography tools are critical for cutting-edge semiconductor manufacturing, enabling smaller and more powerful chips.

In Q1 2024, ASML generated €5.3 billion in total net sales and €1.2 billion in net income. For the full year 2023, sales grew 30% to €27.6 billion with 51.3% gross margins. ASML also returned €3.3 billion to shareholders via dividends and buybacks, with an additional €12 billion slated for additional repurchases by the close of 2025. Importantly, ASML ended 2023 with a massive €39 billion order backlog.

While 2024 will be a transition year amidst the semiconductor downcycle, secular growth drivers and expanding applications for chips bode well for multi-year growth. ASML expects the industry to double over the next decade. To capitalize, ASML is investing to expand capacity and prepare for the strong ramp expected in 2025-2026.

With advanced lithography technology driving the bleeding edge of Moore’s Law, no company is better positioned than ASML to be among the top millionaire-maker stocks.

Alphabet (GOOG, GOOGL)

Alphabet (GOOGL) - Quantum Computing Stocks to Buy

Despite recent mishaps, such as AI overviews in Google search bombing, Alphabet (NASDAQ:GOOG, GOOGL) is still among the top millionaire-maker stocks. The tech giant delivered strong first-quarter 2024 results, with revenues of $80.5 billion, up 15% year-over-year. Operating margins also expanded, highlighting Alphabet’s ability to reengineer costs amid growth.

Driving gains is Alphabet’s leadership in AI research and infrastructure. As the company enters the “Gemini era” over the next decade, its global product footprint positions it to benefit tremendously from the next wave of AI innovation. Already, Alphabet is integrating its Gemini AI models into advertising and enterprise products, creating new revenue streams.

Equally promising, Alphabet recently announced a $0.20 per share quarterly dividend, its first ever. The Board also authorized a sizable $70 billion increase to the company’s share repurchase program. These shareholder-friendly moves confirm Alphabet’s consistent cash generation and intent to return capital when possible.

Lastly, Alphabet onboarded a top-tier CFO in Anat Ashkenazi, poached from pharma giant Eli Lilly (NYSE:LLY). With Eli Lilly shares up over 50% annually over the past three years amid blockbuster obesity drugs, Ashkenazi joins Alphabet at an ideal time to optimize investments into groundbreaking growth engines like generative AI. With strong growth and profits already in motion, shareholder returns improving, and top talent leading the financially disciplined charge into the AI era, Alphabet checks all the boxes as one of the attractive millionaire-maker stocks over the next decade.

On the date of publication, Andrea van Schalkwyk held long positions in AAPL and GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Andrea van Schalkwyk is a value investor who adheres to the principles of the renowned Warren Buffett and his mentor Benjamin Graham. He holds a Master of Engineering (MEng) from the University of Padua and an Executive MBA from the CUOA Business School.

Article printed from InvestorPlace Media, https://investorplace.com/2024/06/3-stocks-to-catapult-your-100k-into-a-cool-million-june-2024/.

©2024 InvestorPlace Media, LLC