TFSA Investors: Stocks That Could Turn $6,500 Into $60,000 by 2030

TFSA investors looking to outpace the broader markets can buy and hold growth stocks such as Snowflake right now.

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Investors are constantly on the lookout for “multi-bagger” stocks that generate outsized gains over time. Here, it’s imperative to identify stocks that are growing at a fast clip, and expanding revenue and profit margins at a consistent pace.

Moreover, if Canadians can hold these growth stocks in a TFSA (Tax-Free Savings Account), any returns in the form of dividends and capital gains will be sheltered from Canada Revenue Agency taxes.

The TFSA contribution room for 2023 has increased to $6,500, which can be deployed to create a diversified portfolio of growth stocks. These two tech stocks can help you turn $6,500 into $60,000 by 2030.

Snowflake stock

Snowflake (NYSE:SNOW) offers enterprises a platform called the Data Cloud to mobilize data at scale. Here, companies can unite their siloed data to execute diverse analytic workloads.

Snowflake ended fiscal Q1 of 2024 with a net revenue retention rate of 151%, suggesting that customers increased spending by 51% in the last 12 months. A high customer engagement rate has allowed Snowflake to increase revenue from US$265 million in fiscal 2020 (ended in January) to US$2.1 billion in fiscal 2023.

Analysts tracking the stock expect its sales to rise to US$2.8 billion in fiscal 2024 and US$3.6 billion in fiscal 2025. Snowflake expects its total addressable market to grow more than double from US$140 billion in CY 2022 to US$290 billion in CY 2027, providing the company with enough room to expand its top line.

Around 330 organizations now spend at least US$1 million annually on the Snowflake platform, up from 185 in fiscal 2022 and just 80 in fiscal 2021.

Due to its asset-light model, Snowflake is on track to improve profit margins in the upcoming years. For instance, its free cash flow margin is forecast to widen from 12% in 2022 to 30% in 2029. Its non-GAAP (generally accepted accounting principles) product gross margins have also improved from 69% to 75% in the last two years.

Hut 8 Mining stock

Investors bullish on Bitcoin and Ethereum can consider investing in Hut 8 Mining (TSX:HUT). Valued at a market cap of $1 billion, Hut 8 stock is trading 77% below all-time highs, allowing you to buy the dip.

Hut 8 mines Bitcoin, which means its share price is tied to the performance of the digital asset. During the last crypto bull run, Hut 8 stock rose from $1 in December 2019 to $19 in November 2021.

Hut 8 Mining also acquired a high-performance computing business in early 2022, further diversifying its revenue base.

In Q1 of 2023, Hut 8 reported revenue of $19 million, compared to $53.3 million in the year-ago period. It mined 475 BTC in the March quarter earning $14.5 million. In Q1 of 2022, the company mined 942 BTC to earn $49.3 million.

The next BTC bull run is forecast to begin in mid-2024, and the digital asset might surge past US$150,000 by November 2025, according to the stock-to-flow model. In the case these predictions are correct, you can expect Hut 8 stock to reclaim record highs and easily surge over 500% in the next two years.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Aditya Raghunath has positions in Bitcoin and Ethereum. The Motley Fool recommends Bitcoin, Ethereum, and Snowflake. The Motley Fool has a disclosure policy.

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