Turning $10,000 into $100,000 is the kind of goal that sparks the imagination of investors everywhere.
While it is important to be clear that this level of return is far from guaranteed and would likely take many years to achieve, some ASX shares have the potential to deliver explosive growth over time.
With that in mind, let's take a look at two Australian stocks with the right ingredients to materially grow in value over the coming decade.
Image source: Getty Images
DroneShield Ltd (ASX: DRO)
DroneShield is a leading Australian defence technology company focused on counter-drone and electronic warfare systems. As the use of unmanned aerial systems expands, the need to protect critical infrastructure, military assets, and public spaces from malicious drones has become a top priority for governments worldwide.
In recent months, DroneShield has secured major contracts from military customers, with its most recent $61.6 million order marking the largest in its history. These deals not only validate its technology but also demonstrate increasing global demand for its solutions.
Looking ahead, DroneShield appears well-positioned to benefit from a long-term tailwind in defence spending. Just this week, NATO nations committed to boosting defence outlays to as much as 5% of GDP by 2035. With global security concerns on the rise and an increasing focus on modern warfare capabilities, companies like DroneShield could be key beneficiaries.
While the company is still in the early stages of commercial scale, its strong product offering, growing order book, and strategic relevance to the defence sector make it a compelling high-growth prospect.
Megaport Ltd (ASX: MP1)
Another Australian stock that could be destined for big things is Megaport. It is a homegrown tech company with serious global ambitions. It operates a global network-as-a-service (NaaS) platform that allows businesses to quickly and securely connect to cloud services, data centres, and other digital infrastructure without the need for traditional physical hardware.
As cloud computing continues to take over the world, Megaport is helping enterprises scale faster, reduce complexity, and manage costs. The company has been steadily growing its reach and customer base, with a focus on innovation and network expansion.
With a lean and scalable model, high gross margins, and a growing footprint across North America, Europe, and Asia-Pacific, Megaport appears well-placed to tap into the ongoing digital transformation and artificial intelligence boom.
If management continues to execute and the broader digital infrastructure trend continues, Megaport could be significantly more valuable in the years ahead.
Foolish takeaway
Unfortunately, no one can say for sure that $10,000 invested in these shares will turn into $100,000. But what we can say is that both DroneShield and Megaport are operating in fast-growing, high-potential markets, and are executing strategies that could drive outsized returns over time. This could make them worth a closer look.
