On June 27, Dan Ives of Wedbush Securities appeared on Bloomberg’s “Bloomberg The Close” to suggest that the tech bull market is just getting started, and so he expects a strong second half of the year. Ives believes that the current market rally is in its early stages, particularly when it comes to the software phase of the AI revolution and its impact on consumers. Addressing investor comfort with funding such ventures without immediate returns, like early investments in data centers and AI, Ives stated that investors do not want to be left out of this rapidly expanding market. He characterized the current AI landscape as a Game of Thrones arms race, with tech companies intensifying their focus.

Regarding company valuations, particularly in light of traditional metrics seemingly not applying to some of these high-growth AI companies, Dan dismissed the concerns of bears who can’t find AI in the spreadsheets. He argued that investors must look 3, 5, or even 7 years out to assess monetization opportunities. He concluded that focusing solely on one-year valuations causes investors to miss every transformational growth stock over the last 20 years. Ives noted that AI’s influence is now spreading beyond just a few major names to the “second, third, fourth derivatives” of tech. He concluded that it is still 10 p.m. in the AI party that goes to 4 a.m., which indicates room for continued growth and innovation across the tech sector, led by companies in the MAG7.

That being said, we’re here with a list of the 10 best NASDAQ growth stocks to buy for the next 3 years.

Methodology

We sifted through the Finviz stock screener and financial media reports to compile a list of the top NASDAQ growth stocks to buy for the next 3 years. We then selected 10 stocks with a 3-year revenue CAGR of over 15%. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024, which was sourced from Insider Monkey’s database.

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 NASDAQ Growth Stocks to Buy for the Next 3 Years

10. Applied Digital Corporation (NASDAQ:APLD)

3-Year Revenue CAGR: 499.62%

Number of Hedge Fund Holders: 26

Applied Digital Corporation (NASDAQ:APLD) is one of the best NASDAQ growth stocks to buy for the next 3 years. On June 30, BASX, which is a wholly-owned subsidiary of AAON Inc. (NASDAQ:AAON), announced a partnership with Applied Digital Corporation. This collaboration deploys advanced cooling solutions for Applied Digital’s purpose-built AI data center campus in Ellendale, North Dakota, known as Polaris Forge 1.

This partnership involves BASX designing and manufacturing a customized free-cooling chiller system specifically optimized for cold-climate operation at Applied Digital’s Polaris Forge 1 AI factory. The system is engineered to reduce power demand and requires zero water consumption, which addresses the unique AI infrastructure demands that necessitate 15x to 30x the power density of traditional data centers.

The free cooling chiller system operates in 3 optimized modes, all without using water: Full Free Cooling, which rejects 100% of the IT load using only pumps and fans; Partial Free Cooling, which uses ambient air for as much load as possible, supplementing with direct expansion/DX cooling when necessary; and Full Mechanical Cooling, which engages compressors and coils for full DX capacity during peak ambient conditions.

Applied Digital Corporation (NASDAQ:APLD) designs, develops, and operates digital infrastructure solutions and cloud services for HPC and AI industries in North America. BASX manufactures high-efficiency data center cooling, cleanroom systems, custom HVAC, and modular solutions. AAON Inc. (NASDAQ:AAON) engineers, manufactures, markets, and sells air conditioning and heating equipment.

9. Manhattan Associates Inc. (NASDAQ:MANH)

3-Year Revenue CAGR: 15.28%

Number of Hedge Fund Holders: 31

Manhattan Associates Inc. (NASDAQ:MANH) is one of the best NASDAQ growth stocks to buy for the next 3 years. On June 17, Manhattan Associates announced that Giant Eagle successfully implemented Manhattan Active Warehouse Management/WM at its largest facility. This facility is located in Bedford Heights, Ohio, and spans over 1 million square feet.

This implementation in Bedford Heights marks the 5th facility in Giant Eagle’s ongoing cloud migration to Manhattan Active WM. The company plans to transition its remaining 2 distribution centers to the new system by September this year. Each implementation has been completed efficiently, with Giant Eagle reportedly returning to full production levels within days of launching the updated system.

In its first week of operation, the Bedford Heights warehouse exceeded expectations by processing hundreds of thousands of inbound and outbound cases. Manhattan Active Warehouse Management is a cloud-native WMS built from microservices to unify all aspects of distribution planning and execution. This system seamlessly coordinates with Manhattan Active Transportation Management/TM, which Giant Eagle is currently implementing.

Manhattan Associates Inc. (NASDAQ:MANH) develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omnichannel operations. Giant Eagle Inc. is one of the nation’s largest food retailers and distributors.