The growth promise of certain companies in the AI sector might be seriously overlooked.
Investing in firms that are positioned for rapid growth could yield remarkable returns in the stock market. If you can get in on these stocks at reasonable prices relative to their potential earnings growth, that’s even better.
With this in mind, here are two stocks that might offer excellent returns over the next five years.
1. Advanced Micro Devices
Shares of Advanced Micro Devices (AMD) have risen 49% in the last six months and are approaching new highs. Investors might witness further gains as AMD aims for a slice of the $1 trillion AI computing market.
While AMD isn’t growing as swiftly as Nvidia, which is leading in the graphics processing unit (GPU) market, you don’t need to worry about competing with rivals to see success with this stock. There’s growing demand for AMD’s Instinct data center GPUs, leading to a 22% year-over-year increase in the data center segment last quarter.
AMD projects revenue growth to keep accelerating in coming years. The upcoming Helios rack system, which aims to compete with Nvidia’s data center solutions, is seen as a potential catalyst. It’s hefty at 7,000 pounds and consists of multiple chips, including AMD’s MI455 GPU and EPYC CPU. This setup is tailored for AI inference tasks, enabling models to make predictions from new data autonomously.
The MI350 GPUs have been pivotal for growth in 2025, but significant clients like OpenAI and Oracle provide visibility for short-term revenue boosts for AMD.
Yet, for AMD to really elevate its stock price, it has to establish itself as the go-to AI computing supplier for major clients. The company has revealed plans to launch the MI500 GPU in 2027, promising a 1,000x improvement in AI performance. This signals to investors that AMD has a pipeline of products designed for long-term growth.
Analysts expect AMD’s earnings to grow at an annual rate of 45% over the next few years, aligning with management’s long-term goal of 35% annual revenue growth. Strong demand for data center chips is anticipated to enhance margins and drive revenue growth.
Currently, AMD stock trades at 33 times this year’s earnings estimates, suggesting that investors are getting a good deal, which could lead to impressive returns in the coming years.
2. CleanSpark
The newer chips from Nvidia and AMD are going to require more power, and data centers are already experiencing power shortages—a situation forecasted to worsen. This scenario creates an opportunity for CleanSpark (CLSK), a major Bitcoin miner, which owns over 1.3 gigawatts in power and data center assets.
CleanSpark’s mining operations are generating solid results. The company has mined more than 13,000 Bitcoins, and it’s projected that its earnings per share will reach $1.25 by fiscal year 2025. This positions CleanSpark well to tackle emerging AI needs.
Management is working to adjust its data center portfolio to meet demands for higher-performance computing. While it may have been slow to the punch compared to competitors, the acute shortage of power in data centers offers CleanSpark a significant opportunity.
They’ve secured a site in Texas for a 285-megawatt AI data center aimed at serving major clients. Additionally, they have facilities in Sandersville, GA, and around Atlanta, amounting to over 100 megawatts of capacity in total.
These megawatts are immensely valuable. For instance, CoreWeave recently signed a $11 billion contract with Applied Digital, which covers 400 megawatts of capacity. And last December, Hut 8 entered a 15-year, $7 billion contract with Anthropic for an initial 245 megawatts.
The primary risk for CleanSpark lies in meeting construction schedules, which is critical for timely operations of these facilities. However, the profitability of their Bitcoin mining operations coupled with a low stock price and a P/E ratio of just 12x offsets some of this risk.
Investors are essentially paying a fair value for mining, while benefiting from potential AI infrastructure opportunities without much of a premium. If management can finalize multiple deals with major clients regarding their data center projects, substantial returns over the next five years could be on the horizon.
