Growth stocks are companies that are expected to report above-average earnings and revenue growth. These companies continue to witness higher growth as they often reinvest profits into innovation, market expansion, and better technology. For investors who are looking for long-term gains, understanding the key drivers behind growth stocks is key amid the volatility from macroeconomic uncertainties and a high-interest rate environment.
Market valuations and future trends have been central to recent discussions, with investors prioritizing selectivity. Companies with durable competitive advantages and strong cash flows continue to attract interest.
In a CNBC interview on June 13, 2025, Dubravko Lakos, Head of Global Markets Strategy at JPMorgan, reaffirmed his year-end S&P 500 target of 6,000, noting that the market may remain range-bound at current levels following a strong rally. While tactically bullish since late April, he expects the short-term upside to continue but cautions that volatility could return in July, especially if payroll data disappoints or tariff risks intensify.
Despite these concerns, Lakos remains constructive over the longer term. He believes any growth scare is likely to be temporary and could lead to renewed upside if the Fed eases policy earlier than expected. His strongest conviction lies in the long/short momentum trade, particularly in AI, big tech, and data center-related equities, which he expects to outperform regardless of broader market movements.
In a separate CNBC interview on June 13, 2025, Stephanie Link characterized the recent market pullback as a natural and temporary reaction following a 21% rally since April. She views the current weakness as a buying opportunity, and advocates for selective investments across both outperformers and undervalued names.
Link favors stocks she considers structural winners and also sees potential in beaten-down companies. In her view, as long as geopolitical uncertainty persists, strong earnings growth and economic stability justify a “buy-the-dip” approach for long-term investors.
With that in mind, let’s take a look at the 10 best growth stocks to buy according to billionaires.
Our Methodology
To compile this list, we began by screening stocks with a market capitalization of over $2 billion from Insider Monkey’s database of billionaire holdings. From this universe, we filtered companies that have achieved revenue growth of over 30% in the past five years and are projected to deliver revenue growth exceeding 20% in both the current and upcoming fiscal years. We then ranked the top 10 stocks in ascending order based on the number of billionaire investors holding positions, as of Q4 2024. Additionally, we also provide data to assess hedge fund sentiment surrounding these stocks, utilizing data from Insider Monkey’s Q1 2025 hedge fund database to offer deeper insights into institutional investor trends.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Growth Stocks to Buy According to Billionaires
10. TransMedics Group Inc. (NASDAQ:TMDX)
Rev. Growth Current Year/ Next Year: 31% / 20%
Number of Billionaire Investors: 8
Number of Hedge Fund Holders: 23
TransMedics Group Inc. (NASDAQ:TMDX) is one of the 10 best growth stocks to buy according to billionaires. The stock has had a tremendous year so far, with share price gains of 129%, leading other stocks in this list by a considerable margin, as none of the other stocks here have even reached 100%.
In 2024, the company’s revenue surged a robust 83%, and the street expects it to post a solid 31% growth in FY 2025. The company is also likely to experience significantly improved profitability, as consensus EPS forecasts a 77% growth this year and a 38% growth next year.
On June 9, Canaccord Genuity analyst William Plovanic reaffirmed a Buy rating on TransMedics Group Inc. (NASDAQ:TMDX) with an unchanged price target of $129. This reaffirmation follows the company’s June 9 presentation at the Goldman Sachs Global Healthcare Conference, where the company reaffirmed the strategy behind its industry-leading position in organ transplantation. Its execution continues to support a positive outlook, with management sharing tangible progress toward its long-term targets.
At the centre of the story is the National OCS Program (NOP), which now drives nearly all company revenue, enabling TransMedics to offer a full-service, end-to-end transplant logistics and technology solution. This model has not only boosted transplant volumes but also established a critical advantage that competitors have yet to replicate.
The company is targeting $1.2 billion in revenue and a 30% operating margin by 2028, driven by the expanded adoption of its Organ Care System and the upcoming next-generation platforms. Notably, its leadership in the DCD (donation after circulatory death) heart category, which now makes up about half of all U.S. heart donors, reflects its role in expanding the donor pool.
TransMedics Group Inc. (NASDAQ:TMDX) is well-positioned to introduce new platforms for heart, lung, and kidney care in the coming years, including a Gen 3 system designed for greater portability and scalability. With strong clinical data and operational depth, the company appears well-positioned to hit its 10,000 annual transplants milestone by 2028 and continue growing from there. Management expects its kidney platform to launch by 2027 and aims to achieve 20,000 to 30,000 transplants over the next three to five years.
TransMedics Group Inc. (NASDAQ:TMDX) is a commercial-stage medical technology company offering organ transplant therapy for patients with end-stage organ failure across multiple disease states.
9. DraftKings Inc. (NASDAQ:DKNG)
Rev. Growth Current Year/ Next Year: 32% / 20%
Number of Billionaire Investors: 9
Number of Hedge Fund Holders: 70
DraftKings Inc. (NASDAQ:DKNG) is one of the 10 best growth stocks to buy according to billionaires. On June 10, Jefferies analyst David Katz released a note discussing the impact of the Illinois legislature’s approval of a new betting transaction tax on all in-state wagers announced in the first week of June. As a result of the higher tax, operators are expected to adjust their fees accordingly.
The new transaction tax, effective from July 1, requires operators to be charged $0.25 for each bet up to 20 million bets and $0.50 for each additional bet thereafter.
On June 10, Flutter Entertainment plc (NYSE:FLTR), another player in the space, announced a $0.50 fee for each bet made on its FanDuel platform, effective September 1, to offset the added cost. According to Jefferies analyst David Katz, this move is likely to set a precedent across the industry.
Following the development, Katz believed that DraftKings is likely to adopt a similar surcharge model, given its practicality in directly addressing the tax burden. While such a fee could be passed through to consumers, the analyst views the development as moderately positive for the stock. He maintained a Buy rating on DraftKings, with a $60 price target, reflecting continued confidence in the company’s ability to navigate evolving regulatory frameworks.
Notably, two days after the analyst’s note, on June 12, DraftKings also announced that it would implement a $0.50 transaction fee on all mobile and online bets placed in Illinois, effective September 1. While the company CEO, Jason Robins, shared his disappointment over the tripling of the company’s tax rate in the state over the past two years, he offered to remove the fee immediately if the new legislation is repealed.
DraftKings Inc. is a Boston, Massachusetts-based gambling company that offers sportsbook and daily fantasy sports (DFS) services.
8. Zscaler Inc. (NASDAQ:ZS)
Rev. Growth Current Year/ Next Year: 23% / 20%
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 46
Zscaler Inc. (NASDAQ:ZS) is one of the 10 best growth stocks to buy according to billionaires. On June 9, Bank of America analyst Tal Liani raised his price target on Zscaler to $340 from $285, while maintaining a Buy rating, following the company’s CEO, Jay Chaudhry’s, presentation at the Bank of America’s 2025 Global Technology Conference (GTC). The analyst highlighted sustained customer demand and increasing platform adoption as key factors contributing to the higher valuation.
On June 5, management highlighted several positive trends during the GTC event. In the last quarter, over 70% of new annual contract value (ACV) came from upselling to existing clients, while new logo ACV grew 40% year-over-year. Zscaler Inc. (NASDAQ:ZS) is expanding its reach beyond core secure web gateway services, with strong traction in data security and Agentic operations now representing nearly $1 billion in annual recurring revenue (ARR). Notably, data security alone accounted for $350 million in ARR last quarter.
Its recent acquisition of Airgap Networks highlights a deeper investment in cybersecurity advancements. While competition and pricing pressure remain, Zscaler’s product differentiation and focus on efficiency appear to be supporting its growth outlook.
In Liani’s view, rising demand for Zero Trust solutions justifies a higher multiple, primarily as Zscaler executes well on both innovation and customer expansion.
Zscaler Inc. (NASDAQ:ZS) is a provider of cloud-based cybersecurity solutions. Its Zero Trust architecture ensures secure connections between users, devices, and applications, regardless of location.
7. Super Micro Computer Inc. (NASDAQ:SMCI)
Rev. Growth Current Year/ Next Year: 48% / 35%
Number of Billionaire Investors: 13
Number of Hedge Fund Holders: 40
Super Micro Computer Inc. (NASDAQ:SMCI) is one of the 10 best growth stocks to buy according to billionaires. On June 10, Super Micro signed an agreement with Ericsson to explore a potential collaboration aimed at speeding up Edge AI adoption. The proposed partnership would combine Super Micro’s high-performance Edge AI compute platforms with Ericsson’s enterprise 5G connectivity solutions.
The companies plan to offer integrated commercial solutions that help enterprises deploy AI at the edge more efficiently. The offering is expected to enable businesses in retail, manufacturing, healthcare, and other industries to rapidly deploy Edge AI infrastructure along with wireless connectivity.
This initiative leverages Supermicro’s strengths in delivering energy-efficient, workload-optimized edge systems, aligning with the growing demand for Edge AI processing. By collaborating with Ericsson, Super Micro is positioning its platforms as part of a broader, ready-to-deploy ecosystem that addresses both compute and connectivity requirements.
Supermicro also recently signed an agreement with DataVolt to develop large-scale AI campuses in Saudi Arabia, marking a significant step in the region’s digital infrastructure growth. The planned facilities will utilize Supermicro’s high-density GPU platforms and advanced liquid cooling systems, aiming to enhance energy efficiency and reduce operational costs.
While final terms are still being negotiated, the companies expect the AI-related products involved in the deal to be worth at least $20 billion, highlighting the scale of the initiative. This move positions both companies at the forefront of sustainable, next-generation AI infrastructure.
Super Micro Computer Inc. (NASDAQ: SMCI) designs high-performance and energy-efficient server and storage systems tailored for various industries. Its key markets include cloud service providers, enterprises, large data centers, original equipment manufacturers (OEM), appliance manufacturers, and emerging technologies such as 5G, telecommunications, edge computing, and the Internet of Things (IoT).
6. Carvana Co. (NYSE:CVNA)
Rev. Growth Current Year/ Next Year: 33% / 22%
Number of Billionaire Investors: 14
Number of Hedge Fund Holders: 90
Carvana Co. (NYSE:CVNA) is one of the 10 best growth stocks to buy according to billionaires. As of June 13, Carvana has surged over 45% YTD and has amassed share price gains of nearly 180% over the last one year.
The street expects its strong financial and operating performance to continue over the next two years. While revenue growth is projected to be around 20% to 30% over the next two years, adjusted EPS is expected to double from $3.15 in 2024 to $6.11 by 2026.
On June 13, JP Morgan analyst Rajat Gupta reiterated a Buy rating on Carvana, keeping the price target steady at $325. In his latest note, Gupta acknowledges the ongoing pressures in the used car market but notes that Carvana has emerged stronger following recent major restructuring efforts. The analyst notes that the company’s digital model and focus on operational efficiency have helped it gain ground in a fragmented industry.
One key advantage, according to Gupta, is Carvana’s investment in infrastructure, particularly the acquisition of ADESA. These developments are seen as difficult for peers to match and are expected to support above-average margins.
Gupta believes these efficiencies and strategic moves position Carvana well for sustained growth and could lead to upward earnings revisions over time.
While the company is performing well on a fundamental level, investors should also consider that the stock is a high-beta name, with a 5-year monthly beta of over 3.5. Stocks with high beta can lead to significant returns, but they also carry a higher risk of declines during market sell-offs.
Carvana is an e-commerce company specializing in the buying and selling of used cars.
5. Insmed Inc. (NASDAQ:INSM)
Rev. Growth Current Year/ Next Year: 29% / 119%
Number of Billionaire Investors: 14
Number of Hedge Fund Holders: 64
Insmed Inc. (NASDAQ:INSM) is one of the 10 best growth stocks to buy according to billionaires. On June 10, Mizuho analyst Graig Suvannavejh reaffirmed his Outperform rating on Insmed and raised the price target from $96 to $110.
The revision follows the encouraging Phase 2b results for Treprostinil Palmitil Inhalation Powder (TPIP) in treating pulmonary arterial hypertension. Suvannavejh describes the data as highly positive, suggesting TPIP could become a leading treatment option in the respective area.
The analyst believes the trial’s success strengthens Insmed’s growth outlook and opens the door for further upside to current earnings estimates. The tone of the note reflects the analyst’s strong confidence in TPIP’s potential and its impact on Insmed’s long-term value.
Insmed Inc. (NASDAQ:INSM) is a global biopharmaceutical company that develops therapies for serious diseases. It has a commercial product, ARIKAYCE, and a pipeline that includes clinical-stage programs, brensocatib, TPIP, and INS1201, as well as pre-clinical research programs.
4. CrowdStrike Holdings Inc. (NASDAQ:CRWD)
Rev. Growth Current Year/ Next Year: 23% / 21%
Number of Billionaire Investors: 15
Number of Hedge Fund Holders: 64
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is one of the 10 best growth stocks to buy according to billionaires. With a YTD share price appreciation of over 40%, CRWD is one of the best-performing stocks in the cybersecurity space. However, the strong rally has raised doubts about the upside potential from current levels.
Recently, Wells Fargo released a mid-year update that expressed a more constructive view on software stocks for the second half of 2025. The firm expects the sector to recover as macro pressures ease and corporate tech budgets begin to stabilize. However, it advises a selective approach over the coming months.
According to the report, the first half of the year saw increased volatility, with tech stocks fluctuating sharply and investor sentiment dampened by slower-than-expected returns from AI investments. A recent survey by the bank revealed that IT spending increased by just 2% year-over-year in the first half of the year. Still, areas like cloud infrastructure, cybersecurity, and generative AI remain bright spots, showing continued strength despite broader caution in tech spending.
Despite this improving outlook for the sector, CrowdStrike Holdings Inc. (NASDAQ:CRWD) has faced mixed analyst opinions and experienced several downgrades in June.
In the first week of June, Bernstein analyst Peter Weed downgraded CrowdStrike (CRWD) to Market Perform from Outperform, keeping his price target of $371. While the analyst likes the stock fundamentally, he believes the stock is expensively valued at current levels.
In the same week, Bank of America Securities analyst Tal Liani downgraded the stock to Hold from Buy, citing limited upside potential. That said, he raised his price target to $470 from $420 as he now factors in a higher sector multiple.
On the positive side, analysts from RBC Capital, Goldman Sachs, and Piper Sandler, have reiterated their Buy ratings, with price target ranging between $505 and $530.
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is a cybersecurity company specializing in cloud-native endpoint protection, threat intelligence, and incident response services. Its flagship Falcon platform leverages artificial intelligence (AI) and behavioural analytics to detect and prevent cyber threats in real-time.
3. Palantir Technologies Inc. (NASDAQ:PLTR)
Rev. Growth Current Year/ Next Year: 39% / 29%
Number of Billionaire Investors: 16
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR), with an 82% YTD rally, is the best-performing tech stock (trailing only TransMedics Group) on our list of the 10 best growth stocks to buy according to billionaires.
This rally, which has taken the stock to record highs, is fuelled by investors’ belief in its AI-driven growth story. However, according to Bloomberg’s analysis in its June 4 report, the stock is now trading at over 200 times its 12-month forward earnings, one of the highest multiples in the S&P 500, and significantly above the market average of 22 times. Many analysts consider this valuation to be stretched and choose to be on the sidelines.
Ted Mortonson, managing director at Robert W. Baird, believes that expectations are now high after the stock’s steep run-up, and any earnings disappointment could put pressure on shares. This means that the company would need to exhibit consistent execution. According to its latest guidance, management projects 36% revenue growth in 2025, to $3.9 billion, and over $1.5 billion in free cash flow.
Interestingly, the Bloomberg report notes that the stock is one of the lowest-rated S&P 500 stocks, with fewer than one-third of analysts covering it having a Buy equivalent rating.
So, what’s causing the stock to continue rising? The report notes that while Wall Street remains cautious, supporters of the stock believe Wall Street is overlooking a company uniquely poised to thrive amid today’s shifting geopolitical and economic conditions. Investors appear more focused on Palantir’s exposure to key defense, intelligence, and AI opportunities. The company’s recent wins include deeper engagements with the U.S. military, NATO, and Fannie Mae, as well as ongoing expansion of its commercial client base.
Support from the retail investor base has also been notable, keeping trading volumes elevated.
Despite the caution elsewhere, Mark Schappel from Loop Capital is among the analysts who have a positive view on the stock. On June 12, he raised his price target on Palantir to $155 from $130 while maintaining a Buy rating. His conviction on the stock is based on a recent investor session that featured a demonstration of Palantir’s AIP platform and a discussion on broader trends in enterprise AI. Schappel highlights Palantir’s strong position as an early leader in enterprise AI, noting that the technology is shifting from limited trials to full-scale deployment. He also pointed to growing real-world use cases across industries, despite slower AI adoption in Europe.
Palantir Technologies Inc. (NASDAQ:PLTR) is a software company that builds and deploys data integration and analytics platforms for both government and commercial clients.
2. Snowflake Inc. (NYSE:SNOW)
Rev. Growth Current Year/ Next Year: 27% / 23%
Number of Billionaire Investors: 18
Number of Hedge Fund Holders: 94
Snowflake Inc. (NYSE:SNOW) is one of the 10 best growth stocks to buy according to billionaires. On June 9, Canaccord Genuity analyst Kingsley Crane reaffirmed a Buy rating on Snowflake (SNOW) and maintained the price target at $220.
In Crane’s view, Snowflake continues to strengthen its position by focusing on simplifying data access and making it more broadly usable across enterprises. The platform’s architecture, especially its SQL-native interface, has made it easier for organizations to adopt and scale, helping drive up consumption, which remains the core of Snowflake’s revenue model.
The analyst also highlighted the company’s product advancements, including Generation 2 Warehouses and Adaptive Compute, which aim to deliver improved performance and efficiency.
He also believes that Snowflake’s move toward open data standards and its recent acquisition of Crunchy Data suggest a broader strategy to embed itself more deeply within open-source and AI ecosystems. Products like Cortex AI and AISQL, along with the growing Marketplace, underscore its intent to keep pace with rising enterprise demand for AI-powered data tools. Due to these factors, Crane believes that Snowflake is well-positioned as a key long-term beneficiary of the growing demand for AI-driven data platforms among enterprises.
Snowflake Inc. (NYSE:SNOW) is a cloud-based data platform that enables organizations to store, analyze, and share data efficiently. Its Data Cloud allows businesses to consolidate data in one secure and reliable place, driving innovation and valuable insights.
1. Nvidia Corp. (NASDAQ:NVDA)
Rev. Growth Current Year/ Next Year: 56% / 25%
Number of Billionaire Investors: 29
Number of Hedge Fund Holders: 212
Nvidia Corp. (NASDAQ:NVDA) is one of the 10 best growth stocks to buy according to billionaires.
Today, Nvidia’s dominance in powering data centers and AI infrastructure is virtually uncontested. The demand for its GPUs not only boosted the growth of AI-driven applications but also led to tremendous growth for the company. In fiscal year 2021, the Gaming segment accounted for approximately 50% of total revenue. Over the next four years, the Data Center business surpassed it, accounting for around 89% of total revenue, while Gaming’s contribution declined to around 9% by 2025.
At its recently concluded GTC conference in Paris, the company highlighted its collaboration with European telecommunications companies, cloud service providers, and supercomputing centres in building AI infrastructure in the region. This accelerated investment by the EU is also expected to include building 20 AI Factories, among which 5 are Gigafactories. Therefore, Nvidia is expected to continue running at full speed.
While the stock seems to be taking a breather in 2025 after the 170% surge in 2024, the majority of the street remains bullish, with the consensus 1-year median price target still indicating over 20% upside.
Among the bullish voices is Oppenheimer analyst Rick Schafer, who on June 15, reiterated a Buy rating on Nvidia with an unchanged price target of $175.
Before that, on June 12, DBS analyst Fang Boon Foo reiterated a Buy rating on Nvidia Corp. (NASDAQ:NVDA) but revised the price target to $160 from $175. The analyst highlighted that Nvidia’s recent partnership with Mistral AI, a French company, and its expansion plans in Europe support Nvidia’s solid market position. Although he lowered the price target, the analyst still sees strong growth potential for Nvidia, and cited healthy demand, solid margins, and a strong capital spending cycle across major tech firms as key drivers for the stock’s long-term performance.
Nvidia Corp. (NASDAQ:NVDA) is a leading innovator in the design and production of graphics processing units (GPUs), system-on-a-chip (SoC) solutions, and AI-driven hardware and software. The company’s GPUs are used in gaming, high-performance computing, AI training, and inference and serve as the backbone of data center infrastructure worldwide.
While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
