2 Incredible Growth Stocks I'm Buying Hand Over Fist | The Motley ...
Key Points:
These tech giants can be exceptional picks for long-term investors. The U.S. equity market has struggled in the past few weeks, with the tech-heavy Nasdaq Composite index down by some 14% at one point from the recent high in December 2024. While the index has recently recovered, it's still in the correction zone (lower than 10% from the previous high). Not surprisingly, many high-flying stocks have been negatively affected in this broad market sell-off.
Nvidia (NVDA)
Semiconductor giant Nvidia is a top-notch pick now, especially after the stock has corrected over 20% from its 52-week high in January. Nvidia is well-positioned to benefit from the rapid artificial intelligence (AI) infrastructure build-out. Many of Nvidia's prominent technology clients have already committed capital expenditures (capex) of over $300 billion for AI technologies in 2025.
Demand for AI computing is rapidly increasing as enterprises focus on training large language models with multiple types of data (text, audio, video, images), fine-tuning these models with various types of AI-generated and human feedback, and running them in a real-time environment.
Nvidia's software ecosystem is also a major strength. The broad adoption of the Compute Unified Device Architecture (CUDA) parallel programming platform by developers and enterprises has made it difficult to switch to competitor hardware offerings. Nvidia's networking offerings are also in high demand, especially for networking in large AI clusters.
The company is also betting big on other key markets such as agentic AI, robotics, autonomous vehicles, and Sovereign AI. These can become huge growth catalysts in the coming years.
Meta Platforms (META)
Social media and digital advertising giant Meta Platforms still has much room to grow in the coming years. With over 3.3 billion people, or almost 40% of the global population, using one of Meta's apps daily, Meta's scale is already a significant competitive advantage. Meta can access real-time and proprietary data about user preferences, shopping patterns, opinions, connections, and behaviors.
The company is leveraging its AI systems to analyze this data and derive insights, which help advertisers improve their advertising performance. Meta is aggressively making its presence felt in the AI space, be it in consumer-facing personalized Meta AI assistant or AI infrastructure development.
Despite the many pros, Meta trades at around 25.9 times earnings, slightly above its five-year average of 25.6. However, compared to other technology giants, Meta offers robust growth potential at a much more reasonable valuation -- making it a smart buy now.
