Of Course Nvidia and One More: Two Market Powerhouses Worth Holding Through 2026

Not every investment opportunity commands lasting power, yet of course some stocks demonstrate resilience that sets them apart. When evaluating stocks for your portfolio, look for companies that possess durable competitive advantages—think strong brand recognition and customer switching costs—combined with strategic flexibility to pursue multiple growth avenues. Two companies exemplify this profile for long-term investors.

MercadoLibre: Unlocking Latin America’s Digital Commerce Potential

MercadoLibre (NASDAQ: MELI) stands out as a dominant force in Latin America with a current market capitalization near $116 billion. This platform operates as a hybrid powerhouse, blending Amazon-style e-commerce with PayPal-inspired financial services across 18 countries. The company’s dual-engine model offers users a comprehensive ecosystem spanning marketplace transactions, lending, insurance, payment processing, and savings products.

The growth metrics tell a compelling story. Recent quarters show 77 million active buyers and 72 million monthly fintech users, with both segments expanding by more than 25% year-over-year. Third-quarter financials reflected net revenue climbing 39% annually alongside a healthy 5.7% net profit margin. The stock carries an attractive forward price-to-earnings multiple of 31, markedly below its five-year average of 64.

What makes MercadoLibre particularly intriguing? E-commerce penetration in Latin America currently hovers around just 15%—a figure that suggests substantial runway ahead. As digital adoption accelerates across the region, this platform’s diversified service offerings position it to capture growing transaction volumes and financial services demand.

Nvidia: The Indispensable Engine of Artificial Intelligence

Nvidia (NASDAQ: NVDA) commands the semiconductor landscape with a market cap recently positioned at $4.6 trillion, making it the world’s largest chip company by valuation. Of course, its dominance extends well beyond traditional GPU markets—the company has evolved into the critical infrastructure provider for the artificial intelligence revolution, particularly through its data center processors that power the computational backbone of AI systems.

The company’s growth trajectory remains formidable. Third-quarter results showcased revenue surging 62% year-over-year with net income climbing 65%. Yet despite this explosive expansion, the stock maintains reasonable valuations at a forward P/E of 24, substantially below the five-year average of 37.

Looking ahead, Nvidia’s strategic vision encompasses vertical integration within the AI ecosystem, potentially expanding from chips alone into software and networking equipment through strategic partnerships. If your investment thesis hinges on continued artificial intelligence proliferation and the expansion of data center infrastructure globally, Nvidia’s long-term prospects deserve serious consideration.

Building a Portfolio Built to Last

The most successful long-term investors recognize that powerful market dominators with room for expansion deserve core portfolio positions. Both companies demonstrate this combination: proven growth track records, valuation levels that haven’t priced in all future potential, and market dynamics pointing toward decades of expansion.

Consider that historical analysis reveals the power of early conviction. Investors who backed Netflix at the right moment in December 2004 witnessed $1,000 become $450,256. Those who recognized Nvidia’s potential in April 2005 saw comparable gains, with the same $1,000 investment growing to $1,171,666. While past performance never guarantees future results, these examples underscore how long-term allocation to formidable businesses can compound dramatically.

Your investment strategy should evaluate whether these companies align with your thesis on global digitalization, artificial intelligence expansion, and emerging market development. Of course, thorough research and consideration of your personal financial situation remain essential before any commitment. Beyond these two, numerous other compelling growth opportunities merit exploration within your investment framework.