On October 24, Peter Oppenheimer, Chief Global Equity Strategist at Goldman Sachs, appeared on CNBC to suggest that the tech rally is grounded in fundamentals, not speculation, though rising excitement could eventually form a bubble. Oppenheimer identified three factors that are increasing signs of a bubble: increasing valuations, high concentration, and vendor financing. Despite all three signs being present right now, Oppenheimer asserted that the market is not quite a bubble yet. He stated that while these factors are playing out and returns have been strong, particularly in US tech stocks, this dominance is not related to AI specifically. He explained that the tech stocks and the broader US market have been outperforming for 15 years, and this performance has been completely underpinned by extremely strong profit growth. Therefore, the dominance of these large companies and the tech sector is based on fundamentals, not speculation or irrational exuberance about the future. He acknowledged this could change if speculation builds, but he does not believe the market is in a bubble at this stage.
Oppenheimer also explained that historical bubbles build around strong narratives that attract both investors and companies, ultimately pushing valuations to an irrational claim on future potential growth. He noted the scale of the current largest US tech stocks, where the 5 biggest are around 16% or 17% of the value of the whole global stock market. However, he argued that their valuations are not really at the sort of levels seen in bubbles in the past, because they are underpinned by strong profitability. Using a P/E ratio over the next 2 years, he noted the biggest tech stocks are trading at around the mid-20s type P/E. This is lower than the 50 or even a little bit higher P/E at which the 7 biggest stocks were trading at the peak of the technology bubble in 2000. He also compared them to the late 1980s Japan bubble, where the 7 biggest companies had much higher multiples. He concluded that because the performance is backed by fundamentals and valuations are high but not extreme, a bubble has not formed yet.
That being said, we’re here with a list of the 10 best NASDAQ growth stocks to buy for the next 5 years.
Our Methodology
We used the Finviz stock screener to find companies trading on the NASDAQ with a 5-year EPS CAGR of at least 20%. We then cross-verified these growth rates using SeekingAlpha and further narrowed down our list to stocks with a 3-5-year expected average EPS growth rate of at least 15%. Finally, we picked 10 stocks that were the most popular among Wall Street analysts and hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2025.
Note: All data was sourced on October 28.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best NASDAQ Growth Stocks to Buy for the Next 5 Years
10. The Descartes Systems Group Inc. (NASDAQ:DSGX)
5-Year EPS CAGR: 27.66%
EPS Forward Long Term Growth (3-5 Year CAGR): 15.61%
Number of Hedge Fund Holders: 21
The Descartes Systems Group Inc. (NASDAQ:DSGX) is one of the best NASDAQ growth stocks to buy for the next 5 years. On October 3, TD Securities resumed coverage of Descartes Systems with a Buy rating and price target of $121, which was cut down from $135. TD Securities believes that Descartes is well-positioned for growth once the overall economy improves and customers start spending on tools to manage ongoing trade instability.
In other news, the company’s solution is currently boosting e-commerce efficiency. On October 28, Descartes announced that its e-commerce warehouse management system/WMS is being used by two non-profit organizations to optimize fulfillment while supporting workers with special needs. The organizations are ESPAS, a non-profit foundation in Switzerland focused on labor integration, and Steinehelden, a non-profit company in Germany that operates an online shop for LEGO products.
The Descartes Systems Group Inc. (NASDAQ:DSGX) provides global logistics technology solutions worldwide. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions.
9. Monolithic Power Systems Inc. (NASDAQ:MPWR)
5-Year EPS CAGR: 69.41%
EPS Forward Long Term Growth (3-5 Year CAGR): 24.99%
Number of Hedge Fund Holders: 41
Monolithic Power Systems Inc. (NASDAQ:MPWR) is one of the best NASDAQ growth stocks to buy for the next 5 years. On October 20, Wells Fargo raised the price target on Monolithic Power to $970 from $750 and kept an Equal Weight rating as the firm believes that the overall Q3 2025 EPS expectations for the analog and mixed-signal sector are low because investor sentiment remains mixed to negative.
Wells Fargo suggests that if companies issue guidance for the December quarter that is either in line or slightly better than expected revenue and includes stable gross margins, it could be viewed as a positive sign by the market.
Earlier on October 17, Stifel analyst Tore Svanberg also raised the firm’s price target on Monolithic Power to $1,100 from $930 with a Buy rating on the shares as part of the firm’s Q3 2025 earnings preview for the analog, connectivity, and processors group.
Monolithic Power Systems Inc. (NASDAQ:MPWR) designs, develops, markets, and sells semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets internationally.
Hedge Fund Resource Center