2 Unstoppable Growth Stocks I'd Buy With $1,000 and Hold for a Decade

If you have $1,000 to invest, you can choose between index funds, thematic exchange-traded funds, or single stocks. However, with the rise of artificial intelligence (AI) and the companies leveraging the technology, growth stocks in the AI space are particularly attractive. Two companies leading the way are ASML and Taiwan Semiconductor Manufacturing (TSMC).

ASML, a Dutch company, doesn't design AI processors or manufacture semiconductors. Instead, it builds sophisticated machines that semiconductor manufacturers need to produce advanced chips. Its EUV lithography technology is the world's only commercial supplier of such systems. ASML's position in the semiconductor supply chain is invaluable, regardless of which chip designer gains market share. The company's financial performance has been impressive, with record revenue, net income, and gross margin in Q3.

On the other hand, TSMC is the world's largest dedicated semiconductor foundry, manufacturing chips for companies like Nvidia, AMD, Apple, and Broadcom. As these companies compete for increasingly powerful processors, TSMC stands to benefit. High-performance computing accounted for 68% of TSMC's revenue in Q3, and advanced manufacturing technologies contributed to 79% of wafer revenue.

TSMC's manufacturing expertise, relationships with leading chip designers, and expanding technological capabilities give it a competitive advantage that will likely reward long-term investors.

Although both ASML and TSMC are susceptible to downturns in the semiconductor industry, they have qualities that make them interesting for long-term investment. Therefore, splitting $1,000 between these two stocks using fractional shares and holding them for a decade seems like a prudent decision.