2 Growth Stocks With Sky-High Potential to Hold for Decades

Core Insights - Intuitive Surgical and Amazon are highlighted as leading companies with strong growth potential and robust business models that support long-term investment strategies [1][10] - Both companies exhibit strong financial performance, with Intuitive Surgical showing significant revenue growth and Amazon demonstrating a diversified revenue stream across multiple segments [2][7] Intuitive Surgical - Intuitive Surgical reported Q2 revenue of $2.44 billion, a 21% increase year over year, with non-GAAP diluted EPS of $2.19, up 23% [4] - The company anticipates a worldwide da Vinci procedure growth of approximately 15.5% to 17% for 2025, maintaining momentum from the previous year [5] - Intuitive placed 395 da Vinci systems in Q2, including 180 da Vinci 5 units, enhancing its installed base and supporting high-margin recurring revenue [5][6] - The company expects a non-GAAP gross margin of 66% to 67% for 2025, despite tariff impacts, and continues to generate substantial cash for investments [6] Amazon - Amazon's Q2 net sales increased by 13% year over year to $167.7 billion, with operating income rising to $19.2 billion [7] - The online stores segment grew by 11% year over year, while the advertising business saw a 19% increase, and AWS revenue rose by 17% to $30.9 billion [7][8] - Amazon's capital expenditures reached $31.4 billion in Q2, primarily for building data centers and investing in AI, but the company has a history of generating long-term returns from such investments [9] - The combination of AWS, advertising, and retail operations creates multiple growth avenues for Amazon, enhancing its earnings potential over time [9][10]