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CRISPR Therapeutics has found a way to successfully repair the genetic code. The next step is to monetize these technologies.
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Artificial intelligence (AI) data center interconnect giant Broadcom hasn’t had much competition so far.
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Most of China’s artificial intelligence industry develops in its own island. One company is expected to dominate.
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10 stocks we like better than CRISPR Therapeutics ›
All investors want to get rich overnight. However, as anyone who’s been in the market for a while can attest, that’s not what happens. Wealth growth takes time. And the more time you’re willing and able to make your choices, the better your returns tend to be.
With this as a backdrop, we take a closer look at three stocks that have more than just solid long-term prospects. Granted, they require lengthy holding periods to realize their full potential and pay off in full. Of course, that means running the risk of entering into a name whose future is still a bit murky and far from guaranteed. Still, if things go the way they seem, the risk will be worth it.
The premise of repairing damaged or defective DNA has long been a focus of the healthcare industry. However, it will not become a commercial reality until the end of 2023. CRISPR therapy‘ (NASDAQ:CRSP) Casgevy becomes the first gene therapy approved by the FDA. Although it is only approved to treat sickle cell disease, it is a tacit but important validation of basic science.
The science uses clustered regularly interspaced short palindromic repeats, or CRISPR, found in human DNA, to delete damaged genetic code and then replace it with the correct genetic code. Or, more specifically, removing a defective piece of DNA forces the body to use its own self-repair processes to make a permanent, healthy repair.
This idea promises to be the basis for treatments for diabetes, autoimmune diseases, and cardiovascular disease—all of which CRISPR Therapeutics is conducting clinical trials currently underway. In the future, though, this approach could be refined to treat cancer, Alzheimer’s disease, muscular dystrophy, and more. This is why Precedence Research believes that the global CRISPR treatment market will grow at an average annual rate of nearly 17% through 2034.
Given that one of the company’s co-founders (Dr. Emmanuelle Charpentier) won the 2020 Nobel Prize for discovering and creating this CRISPR-based gene editing method, it’s no exaggeration to say that CRISPR Therapeutics itself is very well-positioned to capture at least its fair share of the future growth of medical science.
Remember, medical science moves extremely slowly and requires long-term thinking from investors.
This might put things into perspective and help you keep at it: Although Casgevy was approved to treat sickle cell disease more than two years ago, its revenue isn’t expected to really explode until next year, rising from a forecast of a few million dollars this year to more than $100 million next year and nearly $300 million after that. At that point, developments outside of sickle cell disease should start to drive the stock higher more consistently.
So far, Broadcom Has always been one of the big names NVIDIA It is developing rapidly due to the emergence of artificial intelligence (AI). Nvidia makes the computing processors used in most AI data centers. Broadcom then provides the technology to connect them, turning them into true neural networks.
However, as is often the case, smaller, newer competitors saw Broadcom’s efforts to become the dominant name in this area of the artificial intelligence business and found a way to do it better.
Astra Labs (NASDAQ: ALAB) is one of those smaller, newer competitors. It creates a series of interconnect solutions specifically for artificial intelligence data centers. For example, its Aries series of PCIe smart gearboxes allow data center owners/operators to interface next-generation processors with previous-generation motherboards, extending the life of the latter while allowing use of the former.
Meanwhile, Astera’s Leo CXL smart memory controller is the “industry’s first purpose-built solution to support memory expansion and memory pooling,” according to the company’s website, providing access to memory to take full advantage of artificial intelligence platforms, particularly inference platforms.
At nearly 90 times this year’s expected profit of $1.78, Astera Labs’ stock price isn’t cheap. This is the main reason why the stock has fallen sharply from its September highs, outweighing the overall market weakness during this time.
Take a step back and look at the bigger picture. After more than doubling this year, analysts expect revenue to grow more than 40% next year, pushing earnings per share to $2.37 from $1.78. This may just be the tip of the iceberg of what we will need for professional AI connected solutions over a long period of time.
last added Alibaba Group (NYSE: BABA) Add to your list of great growth stocks to buy and hold for the long term.
The addition may surprise some investors who have kept a loose eye on the company. While no one denies its dominance of the Chinese e-commerce market, it is a market that is both saturated and mature. It also encountered economic headwinds.
Overall, China’s total retail sales of consumer goods increased by only 1.3% in November, which was slower than the 2.9% growth in October and lower than the 2.8% growth forecast. The concern is not entirely unwarranted.
But in the foreseeable future, e-commerce will not be Alibaba’s main growth engine. This will be artificial intelligence. In August, the company launched an AI processor chip that is surprisingly competitive with Nvidia’s powerful H2O processor designed for overseas customers. Less than a month later, it already had its first customer: telecom giant China Unicom. There are definitely more projects in the works.
This isn’t just a powerful AI processor, though. Unlike many Western Hemisphere hardware makers and software companies, Alibaba combines the two, offering a range of open source software products that work well with its traditional cloud computing services and its homegrown artificial intelligence model called Qwen. In fact, just last month, the company launched Qwen App, a chat-based AI assistant for consumers. It’s another way Alibaba is expanding its network of digital ecosystems, although it doesn’t yet know how to monetize every aspect of this deep reach.
This is important because China’s AI industry can easily develop there, just as other AI platforms have developed elsewhere. Morgan Stanley It is estimated that by 2030, the value of China’s artificial intelligence industry will reach US$140 billion, and Goldman Sachs It is believed that by the end of the same time period, more than 30% of Chinese companies will be using some kind of artificial intelligence technology. Alibaba, more than any other company, is committed to helping make this happen.
Before buying CRISPR Therapeutics stock, consider the following factors:
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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions and recommendations at CRISPR Therapeutics, Goldman Sachs Group Inc. and Nvidia. The Motley Fool recommends Alibaba Group, Astera Labs and Broadcom. The Motley Fool has a disclosure policy.
3 Great Growth Stocks to Buy Now and Hold for the Long Term Originally published by The Motley Fool