Three Solid Investment Stocks with Potential for Long-Term Gain over the Next Ten Years
In the ever-evolving tech landscape, three companies — Meta Platforms, Taiwan Semiconductor Manufacturing Company (TSMC), and Netflix — are poised for long-term growth, each driven by distinct dynamics and challenges.
Meta Platforms: AI-Fueled Transformation
Meta Platforms, the parent company of Facebook, Instagram, Messenger, WhatsApp, and Threads, is witnessing promising growth. This growth is primarily fuelled by its aggressive investments in AI and expanding product offerings. The company's Q2 2025 revenue is projected to range between $42.5 billion and $45.5 billion, demonstrating a robust 22% year-over-year revenue growth.
Meta's AI-driven advertising business is already paying dividends, contributing to a $35 billion profit in the first half of 2025, marking a 36% increase. The Threads messaging platform is also growing rapidly, attracting more monthly active users. Meta's capital expenditure plans remain high, with a commitment to invest up to $65 billion in 2025, primarily towards AI and new products like AI-integrated Ray-Ban glasses. The company's stock trades at around 28 times earnings, indicating that investors see significant growth potential from its AI-driven transformation.
Taiwan Semiconductor Manufacturing Company (TSMC): Meeting Global Demand for AI Chips
TSMC, a major customer for tech giants such as Advanced Micro Devices, Qualcomm, and Nvidia, benefits from the growing global demand for AI chips and semiconductors. The company projects AI-related revenue to grow at a 45% compound annual growth rate (CAGR) over the next five years, while overall revenue is expected to grow at a 20% CAGR.
To meet this demand, TSMC is investing heavily. The company plans to spend between $66 and $72 billion in capital expenditures in 2025, and has announced a $165 billion plan to expand US manufacturing capacity. Despite a 220% stock price surge since 2023, TSMC trades at around 24.7 times forward earnings, close to the broader market’s valuation, suggesting it might still be undervalued relative to its fast growth.
Netflix: Navigating a Mature Streaming Market
Netflix's long-term growth depends on continued subscriber growth, content investment, and international expansion, especially in emerging markets. The streaming giant has shifted its business model to include ad-supported tiers and has invested in AI for content personalization. However, its growth rate has slowed compared to the earlier boom, and competition in the streaming industry remains intense. Strategic investments in content and technology are critical for sustaining growth, but Netflix faces a more mature market environment than Meta or TSMC.
In conclusion, Meta and TSMC exhibit strong long-term growth prospects, anchored by AI and large-scale capital investments that support continued growth. Meanwhile, Netflix faces a more mature streaming market, requiring strategic innovation to sustain growth.
- Meta Platforms' first-quarter revenue was $42.3 billion, up 16% from a year ago, and earnings per share were $6.43, up 37%.
- Meta Platforms increased ad impressions by 5% and the average price per ad by 10% in the first quarter of the year.
- Meta Platforms has a dominant share in social media, with over 3.4 billion daily users, a 6% increase from a year ago.
- Netflix began covering more live events and sports, including championship boxing matches, the popular weekly Monday Night Raw telecast, and selected NFL football games.
- Meta Platforms stock is up 22% so far in 2025.
- Netflix's ad-supported tier reached 94 million users this year, more than doubling from a year ago.
- Meta Platforms (META) is the owner of Facebook, Instagram, Messenger, Threads, and WhatsApp platforms.
- TSMC's revenue in the second quarter was $30.07 billion, up 44% from the same quarter a year ago.
- TSMC is responsible for fabricating most of the GPUs in the market, with a current 53% market share of the global foundry market.
- Netflix made a change to its business model by charging an extra fee for account holders who share their account outside their home, leading to a 41% increase in quarterly revenue since the change.
- TSMC stock is up nearly 20% in 2025.
- Meta Platforms is investing up to $65 billion in capital expenditures.
- Meta Platforms plans to buy 1.3 million graphics processing units (GPUs) this year to power its AI ambitions.
- TSMC is investing $165 billion to build manufacturing facilities in Arizona.
- Netflix's second-quarter revenue came in at $11.08 billion, up nearly 16% from a year ago.
- Netflix stock is up a whopping 36% this year.
Summary Table:
| Company | Key Growth Drivers | 2025 Growth Outlook | Strategic Investments | Valuation Perspective | |------------------|----------------------------------------------|-------------------------------------------------|-------------------------------------|----------------------------------| | Meta Platforms | AI-driven ads, Threads messaging, AR glasses | 17-24% YoY revenue growth, substantial profits | $66-72B capex on AI, new products | ~28x earnings, attractive given AI potential | | TSMC | AI chip demand, supply chain expansion | 45% AI revenue CAGR, 20% overall revenue CAGR | $66-72B capex (2025), $165B US expansion | ~24.7x forward earnings, possibly undervalued | | Netflix | Content investment, ad tiers, international | Slowed subscriber growth, competitive market | AI for personalization, content spend | Challenging growth, intense competition |
- Meta Platforms' investments in AI and new product offerings such as AI-integrated Ray-Ban glasses indicate an emphasis on technology and finance, aiming for robust revenue growth of 17-24% in 2025.
- Taiwan Semiconductor Manufacturing Company (TSMC) is capitalizing on the global demand for AI chips and semiconductors by investing heavily, with a projected 45% CAGR growth in AI-related revenue over the next five years.
- Netflix's long-term growth relies on subscriber growth, content investment, and international expansion, including marketing strategies like ad-supported tiers and AI for content personalization.
- The high valuation of Meta Platforms' stock, trading at around 28 times earnings, reflects investors' recognition of its significant growth potential derived from its AI-driven transformation. TSMC, on the other hand, trades at around 24.7 times forward earnings, suggesting potential undervaluation relative to its rapid growth.
