Is 10 years enough time to make you rich? It depends on the amount you are investing and how much you expect to earn. If you want to convert $50,000 into $500,000, you need a Canadian stock that can provide a 26% compounded annual growth rate (CAGR). And if you want $250,000, you need a stock that can provide a 17.5% CAGR. For 26% CAGR returns, you need high-growth tech stocks that are shaping the future, such as those involved in artificial intelligence (AI). For a 17.5% CAGR, a resilient tech stock is what you need.
The Canadian stock that could give you a 26% CAGR in 10 years
If you are looking for a single stock that can give a 10 times return in 10 years, you need to invest in a futuristic Canadian stock with a competitive advantage. Tech stocks worth considering are Topicus.com (TSXV:TOI) for risk-averse investors or HIVE Digital Technologies (TSXV:HIVE) for risk-taking investors.
A stock for risk-averse investors
Topicus.com acquires European software companies that operate in mission-critical applications and enjoy recurring cash flows. Its competitive advantage is an acquisition model that helps it earn a desired return on investment (ROI) from acquired companies. Topicus.com reinvests the cash from the acquired companies to acquire new companies. This gives it the benefit of compounding, which can grow its ROI in the long term.
Topicus.com’s growth is not dependent on a tech trend but on consistent cash flows from its diversified portfolio of companies operating across various verticals. It could earn a 20%–25% CAGR in the next 10 years, even if sustaining its 12%–42% free cash flow (FCF) growth.
A Canadian stock for risk-taking investors
If you are willing to take risks, Hive Digital Technologies can give you exponential growth in one or two growth cycles over the next decade. The Bitcoin mining company is making some bold moves. It is expanding its mining capacity to 25 Exahash/second (EH/s) by November 2025 from 14 EH/s in July 2025. Once the 300 MW Paraguay expansion comes online, it will mine more Bitcoin.
Hive is also expanding its high-performance computing (HPC) capabilities to support the sovereign Canadian artificial intelligence ecosystem. These expansions are being funded from internal cash flow accruals and could grow its revenue fourfold.
So far, the stock is trading at a price-to-sales ratio of 2.4 times, hinting that the market has not yet priced in revenue growth. Now is a good time to buy and hold this stock while it trades below $3. The stock could see exponential growth once the contribution of HPC revenue comes closer to that of Bitcoin mining. At present, HPC accounts for only 10% of its revenue but is growing at 300% annually. Another growth trigger could come in a strong economy where the Bitcoin value surges and creates another crypto bubble.
The Canadian stock that could grow at a 17.5% CAGR over 10 years
Descartes Systems (TSX:DSG) has a robust business model that caters to an age-old business operation of supply chain and logistics. Multiple businesses with heavy logistics requirements, like airlines, oil and gas exporters, and e-commerce companies, need solutions that can help them execute trade efficiently.
Descartes’s unique model allows clients to choose from end-to-end solutions and selective services, or use solutions for a single consignment. For instance, the tariff war is driving demand for its Global Trade Intelligence and compliance solutions. The holiday season sees a surge in e-commerce solutions.
The company keeps adding new services, organically and through acquisitions, giving clients more reasons to come back. It has grown its revenue at 13.4% CAGR in the last 10 years and can continue doing so for the next decade. DSG stock could grow between a 17–20% CAGR and convert $50,000 into $250,000 in 10 years.
