Here are the 2 ‘moonshot’ growth stocks in my retirement portfolio as we start 2026

These growth stocks are high up on the risk spectrum. However, Edward Sheldon sees the potential for huge returns in the years ahead.

| More on:

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I invest most of my retirement savings in high-quality assets (eg index funds and blue-chip growth stocks such as Alphabet, Amazon, and Apple). However, I do allocate a small amount of capital to what I call ‘moonshot’ growth stocks. These are stocks that are high up on the risk spectrum but have a chance of generating exceptionally large returns over the next decade.

Here’s a look at the two moonshots I own right now.

A play on self-driving vehicles and humanoid robotics

First up, we have Hesai (NASDAQ: HSAI). It’s a Chinese company that specialises in LiDAR (Light Detection and Ranging) technology and is listed on both the Nasdaq and the Hong Kong Stock Exchange.

The reason I’ve invested in this company is that I expect demand for LiDAR solutions to soar over the next decade. Not only should demand come from automotive companies deploying advanced driver assistance systems (ADAS) and driverless vehicles, but it should also come from the humanoid robotic space (many robots use LiDAR for perception).

It’s worth noting that revenues here are growing at a spectacular rate. In the third quarter of 2025, for example, they were up 47% year on year to $112m.

Meanwhile, profits are starting to emerge as well. For Q3, non-GAAP net income was about $40m versus a net loss a year earlier.

Now, despite the impressive level of growth (and a valuation that looks very reasonable), this stock’s extremely risky. Some risks to consider include US/China relations, a delisting from the US, competition from rivals, and new technologies that could make LiDAR obsolete.

Given the risks, I’ve kept my position really small. That way, if the stock blows up, my retirement portfolio won’t be badly impacted.

I see a lot of potential though. I think this stock could be worth a closer look if an investor’s looking for high-growth opportunities.

A growth stock for the quantum computing boom

The other stock in my portfolio I consider to be a moonshot is SkyWater Technology (NASDAQ: SKYT). It’s a small US chip manufacturer that’s increasingly focusing on the quantum computing market.

Looking ahead, SkyWater plans to be the chip manufacturing ‘partner of choice’ for quantum computing businesses. So with this stock I get exposure to the quantum computing industry without having to make a bet on an individual company’s technology.

Of course, quantum computing’s an emerging technology and it may never take off – that’s a key risk here.

The good news however, is that this chip company also serves customers in the defence, aerospace, automotive, consumer, healthcare, and industrial markets. So it’s relatively diversified.

As for the valuation, this looks attractive. If we take the revenue forecast of $609m for next year and the current market-cap of $800m, we get a price-to-sales ratio of just 1.6.

I’ll be keeping my position small though. With this one, share price swings of 10%-20% a day are the norm so I don’t want to have a large position that might tank my portfolio if things go wrong.

Taking a five-year view however, I see a lot of potential. I think this growth stock’s worthy of further research.

Edward Sheldon has positions in Hesai, SkyWater Technology, Alphabet, Amazon, Apple, and Nasdaq. The Motley Fool UK has recommended Alphabet, Amazon, Apple, and Nasdaq. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Playful senior couple in aprons dancing and smiling while preparing healthy dinner at home
US Stock

Prediction: this S&P 500 sector could produce the best returns in 2026

Jon Smith puts big tech to one side and talks about why he sees another sector from the S&P 500…

Read more »

Investing Articles

Up 80% with a P/E of 15 and 4% yield – can the Lloyds share price smash it again in 2026?

Harvey Jones is blown away by how well the Lloyds share price has done in recent years. Can the FTSE…

Read more »

Investing Articles

I’m taking a risky bet on these 3 bombed-out FTSE 100 growth shares in 2026

Harvey Jones is excited by the prospects for these troubled UK growth shares, but he's also a little concerned that…

Read more »

DIVIDEND YIELD text written on a notebook with chart
Investing Articles

Demand for these high-yielding FTSE 100 dividend shares could soar in 2026

As interest rates continue to fall, Paul Summers wonders if these top-tier dividend shares could be on many investors' radars…

Read more »

Female student sitting at the steps and using laptop
Dividend Shares

How much do you need in income stocks to save £10k a year from dividends

Jon Smith points out how income stocks can act to build an investor more savings, and points out an investment…

Read more »

Female student sitting at the steps and using laptop
Investing Articles

What if the stock market crashes in 2026?

The stock market is great when it’s going up, but what if it crashes? It’s a good question – but…

Read more »

Close-up image depicting a woman in her 70s taking British bank notes from her colourful leather wallet.
Investing Articles

How much do you need in an ISA to target £1,800 a month of passive income?

How can an investor aim for £1,800 a month in passive income? Muhammad Cheema explains how this could be possible…

Read more »

Businessman hand stacking money coins with virtual percentage icons
Investing Articles

Dividend shares could offer consistent income as interest rates fall in 2026

Lower interest rates usually mean higher share prices. So investors might want to think about buying dividend shares now before…

Read more »