2 Monster Stocks to Hold for the Next 5 Years

By John Ballard – Feb 21, 2026 at 12:00AM ESTKey PointsApplied Digital can help you profit off the growing demand for AI data centers.Reddit's authentic human discussions sets it apart amid the spread of AI-generated content.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: APLDApplied DigitalMarket Cap$8.1BToday's Changeangle-down(-7.90%) $2.49Current Price$29.04Price as of February 20, 2026 at 4:00 PM ETThese high-growth businesses could provide the spark your stock portfolio needs.Growth stocks are powerful ways to build wealth. But it's important to know what to buy. The best opportunities are usually businesses with a clear competitive edge and robust demand for their services. To help you find tomorrow's winners, here are two companies operating in the booming markets for data centers and digital advertising that could be rewarding investments over the next five years. Image source: Getty Images. 1.

Applied Digital Shares of Applied Digital (APLD 7.90%) have had a monster run over the past few years. The company is designing and building data centers to meet the growing demand for artificial intelligence (AI). Recent developments point to a significant opportunity, and the stock appears undervalued. Last year, it signed an $11 billion contract with CoreWeave and a second $5 billion deal with a second unnamed hyperscaler. Altogether, its data center campuses could generate upwards of $16 billion in lease revenue over the next 15 years. These deals validate the company's ability to build data centers on schedule and ease the concerns investors had a year ago, when the stock traded at a much lower valuation. ExpandNASDAQ: APLDApplied DigitalToday's Change(-7.90%) $-2.49Current Price$29.04Key Data PointsMarket Cap$8.1BDay's Range$28.36 - $31.2952wk Range$3.31 - $42.27Volume24MAvg Vol31MGross Margin16.40% Notably, these data centers are located in North Dakota's cool climate. This will be an enormous long-term gain for the company. North Dakota was strategically targeted by management for its low-cost, abundant energy and cooler climate, which provides natural cooling for powerful chips. This will reduce energy costs and improve operating efficiency. Applied Digital's revenue surged 250% year over year last quarter to $126 million, partly driven by the start of the CoreWeave lease. Management is targeting $1 billion in annual operating profit over the next five years, which could lift the stock substantially, given its relatively low market cap of $9.5 billion (share price times total shares outstanding). 2. Reddit Shares of Reddit (RDDT +2.81%) have climbed about 300% over the past three years. This has been supported by surging growth in daily active users, which were up 19% year over year in the recent quarter, reaching 121 million. Despite beating revenue estimates in the fourth quarter, the stock is trading 54% off its recent highs, but this could be a great buying opportunity. ExpandNYSE: RDDTRedditToday's Change(2.81%) $4.10Current Price$150.23Key Data PointsMarket Cap$29BDay's Range$143.91 - $151.0452wk Range$79.75 - $282.95Volume385KAvg Vol5.2MGross Margin90.46% Investors are concerned about competition from AI autonomously retrieving information, reducing the need for users to visit Reddit's platform, but this risk seems overblown. OpenAI partnered with Reddit to access its data and enhance the information accessible through ChatGPT. This underscores a valuable part of Reddit's business: control over billions of posts and comments made on its platform year-round by humans, not AI. Advertisers clearly see a vibrant platform. Revenue surged 70% year over year in Q4 2025, driven by increased ad impressions. Notably, it also drove revenue growth through higher ad pricing -- indicating that Reddit offers high returns on investment for ad buyers. Analysts' models are projecting 37% annualized earnings-per-share growth over the next several years. This makes the stock a steal at these prices, trading at a forward price-to-earnings ratio of 21.Read NextFeb 20, 2026 •By Harsh ChauhanAI Spending Is Poised to Hit $700 Billion in 2026. 2 Top Stocks to Buy to Capitalize on This Massive Number.Feb 9, 2026 •By Keithen DruryIs Applied Digital Your Ticket to Becoming a Millionaire?Feb 8, 2026 •By Johnny RiceShould You Buy Applied Digital Stock Right Now?Feb 8, 2026 •By Rick OrfordCould Applied Digital Be the Most Undervalued Stock Right Now?Feb 8, 2026 •By Dave KovaleskiIs Applied Digital Stock a Buy Now?Feb 7, 2026 •By Johnny RiceIs Applied Digital Stock Going to $0?About the AuthorJohn Ballard has been a contributing writer at The Motley Fool since 2016, covering consumer goods and technology stocks. He holds a bachelor’s degree in business administration with a focus in real estate finance from the University of Arkansas at Little Rock.TMFRazorbackStocks MentionedApplied DigitalNASDAQ: APLD$29.04 (7.90%) $2.49RedditNYSE: RDDT$150.23 (+2.81%) $+4.10*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.