Picking the latest hot growth stocks is smart, but only if they’re priced right. Following the crowd after a stock has made a big jump may not work, so there are some considerations to keep in mind before making a price move.
But I’ve found three hot growth stocks that are worth buying now, and whose valuations aren’t too high to turn a profit.
After Nvidia (NASDAQ:NVDA) The recent selloff has seen it drop more than 10% from its 2024 high, making it an interesting stock to sell. Nvidia’s growth has been incredible, with revenue up 94% year-over-year in its most recent quarter. This rapid growth is due to top-of-the-line graphics processing units (GPUs) used to train artificial intelligence (AI) models.
Demand for this hardware is expected to begin in 2023 and continue to grow into 2025. Nvidia will continue to be in the spotlight, as Wall Street analysts predict a 51% increase in revenue for fiscal year 2026 (ending January 2026).
However, the price investors have to pay for Nvidia stock is significantly lower, as it trades at a price-to-earnings ratio (P/E) of only 51 times as of this writing. Nvidia’s stock price compared to Apple’s and Microsoft’s price-to-earnings multiples of 41x and 36x, respectively, especially considering that Apple and Microsoft only expect revenue growth of 6% and 14%, respectively, in 2025. doesn’t seem that expensive. .
Nvidia’s stock price has skyrocketed and is now much cheaper than before. I think it’s a great stock to pick up before 2025 arrives.
If Nvidia is a hot growth stock, what about the chip company that makes most of Nvidia’s chips that go into GPUs?Taiwan Semiconductor (NYSE:TSM) is a leading company in this field, and also makes chips for giants like Apple. The company’s chip foundry has established itself as the best in the industry, and its advantages have a direct impact on financial results.
TSMC’s revenue in the third quarter rose 36% year over year in USD terms, thanks to a strong AI business that is expected to triple this year. Wall Street analysts expect this advantage to continue through 2025, with sales increasing by about 25% in new Taiwan dollars.
Taiwan Semiconductor’s stock trades at a multiple of 31 times earnings, far cheaper than Apple and Microsoft, to which it has been compared, despite growing much faster. As a result, Taiwanese cicadas still appear to be a great buy, and we can expect plenty of growth going forward.
mercadolibre (NASDAQ:Meri) is a significant shift from the previous two companies. It has nothing to do with AI or technology. Rather, it is a Latin American e-commerce giant with a large presence in the fintech space. Basically, it’s Amazon if it also includes PayPal.
story continues
