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NVIDIA Just Became My First 200-Bagger. These 2 Stocks Could Be Next
I'm adding one of these stocks to the BLI Portfolio today.
Steve Symington
February 23, 2024
With NVIDIA’s (NASDAQ: NVDA) incredible 16% post-earnings pop yesterday, the GPU titan and AI leader just became my first 200-bagger.
Seriously. NVIDIA has returned more than 200X my initial cost basis — over 230X to be exact:
My first public outperform call on NVIDIA from 2013
Though I only started writing publicly about investing and the stock market back in 2012, I’ve personally owned shares of NVIDIA since 2010. I’ve been candid about my journey as a shareholder for more than a decade now; I singled out NVIDIA as a “Top Pick” on my Motley Fool CAPS profile in mid-2013, wrote over 100 articles over the years detailing my bullish views (including one on lessons learned when it became my first 100-bagger last summer), and even chronicled my epically “bad” decision to sell a few hundred shares back in 2015 to help cover the the down payment on my current home (seriously, no regrets!🥲).
But I’m not here to bore you with the details of NVIDIA’s latest quarterly blowout; you can find plenty of solid earnings takes dominating headlines right now.
Rather, I’m more interested in which stocks have the potential to become my next 200-baggers.
Below are two stocks I think have a reasonable chance to do just that. The first (SOFI) is already part of the BLI Premium Portfolio. And I’m adding an initial position in the second stock (named below) to the portfolio near the end of the trading day today (Feb. 23, 2024).
Stock #1: SoFi Technologies (NASDAQ: SOFI)
I’ve made no mystery of my fondness for banking and fintech leader SoFi Technologies (NASDAQ: SOFI) in recent months. Even here at BLI I’ve named it one of my top 5 stocks to start 2024, made it the single largest position in the BLI Premium Portfolio, then watched in delight as the stock roared higher on the heels of its strong fourth-quarter report.
But I’ve yet to truly detail my optimism for SoFi’s future here. And in my opinion, its partial pullback from those post-earnings highs presents yet another opportunity for patient, long-term investors to open or add to their positions.
However, it’s not as easy as simply saying SoFi can ultimately grow its current $8 billion market cap to be at least as large as banking giants like JPMorgan Chase ($530B) or Wells Fargo ($190B).
Why? Not only is SoFi steadily marching toward CEO Anthony Noto’s goal of making it one of the United States’ top 10 financial institutions — as measured by consolidated assets at the end of 2023, SoFi Bank has already climbed to become the 75th largest bank in the country, up from 449th at the start of 2022 — but it also enjoys a massive supplementary opportunity with its burgeoning banking-as-a-service platform offered through its Technology Solutions segment (resulting from the combination of its Galileo and Technisys subsidiaries).
Coupled with the fact that all three of SoFi’s operating segments — Technology Solutions, Financial Services, and Lending — are now individually generating positive contribution profits, and that SoFi just inflected toward positive GAAP profits on a consolidated basis last quarter, and I don’t think it won’t be long until the market can no longer ignore its consistent execution.
The second stock below — which I’m adding to the BLI Portfolio later today — is being revealed only to BLI Premium Members. If you’ve already joined our BLI Premium community, thanks for your support and read on!
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