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.
8. Super Micro Computer Inc. (NASDAQ:SMCI)
5-Year EPS CAGR: 60.01%
EPS Forward Long Term Growth (3-5 Year CAGR): 21.24%
Number of Hedge Fund Holders: 48
Super Micro Computer Inc. (NASDAQ:SMCI) is one of the best NASDAQ growth stocks to buy for the next 5 years. On October 24, Super Micro Computer announced an expansion to its portfolio of Cloud Service Provider solutions with the new 6U 20-Node MicroBlade system, which incorporates the AMD EPYC 4005 Series Processors. The announcement highlights a solution optimized for performance, efficiency, and affordability, targeting Cloud Computing, Web Hosting, VDI/Virtual Desktop Infrastructure, AI Inference, and Enterprise Workloads.
The future-proof 6U MicroBlade system is designed as a cost-effective, green computing solution for Cloud Service Providers. It achieves 3.3x higher density than traditional 1U servers, enabling a single 48U rack to house up to 160 servers and 16 Ethernet switches, resulting in up to 2560 CPU cores per rack.
The system is built on Supermicro’s unique building block architecture, offering customers up to 95% cable reduction, 70% space savings, and 30% energy savings over traditional 1U servers, helping enterprises maximize their Total Cost of Ownership/TCO savings. Each MicroBlade server blade in the 6U system supports a single AMD EPYC 4005 CPU, offering up to 16 cores, 192GB DDR5 memory, and a dual-slot FHFL GPU/Full-Height, Full-Length GPU.
Super Micro Computer Inc. (NASDAQ:SMCI), together with its subsidiaries, develops and sells server and storage solutions based on modular and open-standard architecture in the US, Asia, Europe, and internationally.
7. Insulet Corporation (NASDAQ:PODD)
5-Year EPS CAGR: 62.96%
EPS Forward Long Term Growth (3-5 Year CAGR): 26.50%
Number of Hedge Fund Holders: 53
Insulet Corporation (NASDAQ:PODD) is one of the best NASDAQ growth stocks to buy for the next 5 years. On October 10, RBC Capital raised the price target on Insulet to $365 from $350 and kept an Outperform rating on the shares as part of a broader research note on the MedTech sector ahead of Q3 2025 results due to attractive valuations and numerous opportunities in the Medical Supplies & Devices sector.
RBC Capital is particularly bullish on Insulet. Investor sentiment is positive ahead of the company’s Q3 earnings report because management has already signaled that strong business momentum will allow them to surpass their official Q3 guidance, which essentially minimizes the risk for the quarter.
Additionally, on October 21, Stifel resumed coverage on several MedTech companies with an upbeat outlook driven by the steady adoption of continuous glucose monitors and insulin pumps. In the Insulin Pump segment, Stifel suggested that the Type 2 Insulin-intensive opportunity is significant for pump providers, which, according to the firm, adds to Insulet’s strengths.
Insulet Corporation (NASDAQ:PODD) develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes in the US and internationally.
6. DexCom Inc. (NASDAQ:DXCM)
5-Year EPS CAGR: 21.50%
EPS Forward Long Term Growth (3-5 Year CAGR): 23.58%
Number of Hedge Fund Holders: 60
DexCom Inc. (NASDAQ:DXCM) is one of the best NASDAQ growth stocks to buy for the next 5 years. On October 15, Truist analyst Richard Newitter lowered the firm’s price target on DexCom to $94 from $102 with a Buy rating on the shares as part of the firm’s broader research note previewing Q3 2025 results in the MedTech sector. The firm anticipates healthy revenue and earnings for Q3 across all companies it covers, but warns of stock volatility.
Furthermore, on October 21, Stifel resumed coverage on several MedTech companies due to an optimistic view on the sector’s growth, driven by the adoption of continuous glucose monitors/CGMs and insulin pumps. The firm particularly highlighted a long-term growth opportunity for the CGM market within the substantial Type 2 Basal-only and Type 2 Non-insulin patient segments. This is the same reason Stifel initiated coverage on DexCom.
DexCom Inc. (NASDAQ:DXCM) is a medical device company that designs, develops, and commercializes continuous glucose monitoring/CGM systems in the US and internationally.
5. ASML Holding (NASDAQ:ASML)
5-Year EPS CAGR: 24.99%
EPS Forward Long Term Growth (3-5 Year CAGR): 16.90%
Number of Hedge Fund Holders: 78
ASML Holding (NASDAQ:ASML) is one of the best NASDAQ growth stocks to buy for the next 5 years. On October 16, Berenberg raised the firm’s price target on ASML Holding to EUR 1,050 from EUR 735 with a Buy rating on the shares as ASML Holding’s Q3 2025 results confirmed the recent positive trend in the semiconductor equipment industry. Berenberg believes that the company is positioned to benefit from DRAM spend growth in 2026 and beyond.
On the same day, Deutsche Bank also lifted the firm’s price target on the company to EUR 1,000 from EUR 900 with a Buy rating on the shares. This sentiment was also driven by ASML Holding’s Q3 results. ASML’s bookings for Q3 were largely in line, and extreme ultraviolet/EUV lithography system orders were at their highest levels since Q4 2023.
Morgan Stanley also raised the firm’s price target the same day on ASML to EUR 975 from EUR 950 with an Overweight rating on the shares following its Q3 earnings report.
ASML Holding (NASDAQ:ASML) provides lithography solutions for the development, production, marketing, sales, upgrading, and servicing of advanced semiconductor equipment systems.
4. Micron Technology Inc. (NASDAQ:MU)
5-Year EPS CAGR: 26.19%
EPS Forward Long Term Growth (3-5 Year CAGR): 65.80%
Number of Hedge Fund Holders: 94
Micron Technology Inc. (NASDAQ:MU) is one of the best NASDAQ growth stocks to buy for the next 5 years. On October 20, Barclays analyst Tom O’Malley raised the firm’s price target on Micron to $240 from $195 and maintained an Overweight rating on the shares. Barclays is very selective when choosing companies that have direct exposure to AI due to recent stock price increases. O’Malley believes that many of these stocks are already pricing in the full benefit of future AI deployment.
Earlier on October 17, Mizuho also raised the price target on Micron to $240 from $195 with an Outperform rating, while raising price targets in the storage group as the AI demand continues to accelerate due to expanding multimodal models and longer context windows.
On October 16, UBS analyst Timothy Arcuri also raised the price target on the company to $245 from $225 and kept a Buy rating on the shares under similar reasons as Mizuho.
Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and sells memory and storage products in the United States, Taiwan, Singapore, Japan, Malaysia, China, India, and internationally.
3. Advanced Micro Devices Inc. (NASDAQ:AMD)
5-Year EPS CAGR: 27.54%
EPS Forward Long Term Growth (3-5 Year CAGR): 39.54%
Number of Hedge Fund Holders: 113
Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the best NASDAQ growth stocks to buy for the next 5 years. On October 22, Rosenblatt Securities analyst Kevin Cassidy reiterated a Buy rating on Advanced Micro Devices/AMD and set a price target of $250.00.
Earlier on October 13, Mizuho raised the firm’s price target on AMD to $275 from $205 with an Outperform rating. The company’s partnership with OpenAI is estimated to be worth between $90 billion and $100 billion through the year 2030. However, the firm cautions that the issuance of 160 million warrant shares could potentially dilute the company’s gross margins.
Earlier on October 6, AMD and OpenAI announced a multi-year partnership centered on deploying 6GW of AMD GPUs to power OpenAI’s next-gen AI infrastructure. The multi-generational agreement is set to combine AMD’s strength in HPC with OpenAI’s leadership in GenAI. The first major phase of this deployment, consisting of an initial 1GW, will use AMD Instinct MI450 Series GPUs and is scheduled to begin in H2 2026.
Advanced Micro Devices Inc. (NASDAQ:AMD) operates as a semiconductor company worldwide. It operates in three segments: Data Center, Client and Gaming, and Embedded.
2. Netflix Inc. (NASDAQ:NFLX)
5-Year EPS CAGR: 31.04%
EPS Forward Long Term Growth (3-5 Year CAGR): 24.46%
Number of Hedge Fund Holders: 133
Netflix Inc. (NASDAQ:NFLX) is one of the best NASDAQ growth stocks to buy for the next 5 years. On October 24, Phillip Securities analyst Helena Wang maintained a Sell rating on Netflix and set a price target of $950.00.
However, on October 22, Rosenblatt raised the firm’s price target on Netflix to $1,530 from $1,515, while keeping a Buy rating on the shares. The firm reported that the company’s Q3 results would have exceeded expectations were it not for a one-time charge of $619 million related to a Brazilian tax matter. Rosenblatt based the decision to raise the target price on slightly higher earnings estimates for 2026.
The company’s CFO, Spencer Neumann, stated that this particular Brazilian tax is highly unique and no other tax looks or behaves like this in any other major country that Netflix operates in. He also confirmed that without this expense, Netflix would have exceeded its financial forecasts for both operating income and operating margin for Q3. Neumann also assured the market that the company does not anticipate that this matter will have a material impact on its results going forward.
Netflix Inc. (NASDAQ:NFLX) provides entertainment services and offers TV series, documentaries, feature films, and games across various genres and languages.
1. NVIDIA Corporation (NASDAQ:NVDA)
5-Year EPS CAGR: 91.49%
EPS Forward Long Term Growth (3-5 Year CAGR): 35.84%
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the best NASDAQ growth stocks to buy for the next 5 years. On October 14, Oracle and NVIDIA announced a deepened collaboration at Oracle AI World to support sovereign AI initiatives and accelerate government digital transformation globally. The partnership combines NVIDIA’s AI computing platforms with Oracle’s scalable cloud infrastructure (Oracle Cloud Infrastructure or OCI) to enable organizations to build secure, AI-first systems.
A key example is Abu Dhabi’s Department of Government Enablement/DGE, working with Deloitte and Core42, to deliver next-generation services. The effort supports Abu Dhabi’s vision of becoming an AI-native government by 2027 and is intended as a replicable model for global AI adoption.
By using NVIDIA AI Enterprise software on OCI, DGE gains access to NVIDIA’s cloud-native suite of software tools, libraries, and frameworks. This solution, which is natively available and includes 160 AI tools, a high-performance accelerated computing cluster, and cutting-edge NVIDIA NIM microservices, is deployed in a secure, sovereign environment. The entire initiative is part of the Abu Dhabi Government Digital Strategy 2025-2027, a landmark effort backed by a 13-billion AED investment.
NVIDIA Corporation (NASDAQ:NVDA) is a computing infrastructure company, provides graphics and compute & networking solutions in the US, Singapore, Taiwan, China, Hong Kong, and internationally.
While we acknowledge the potential of NVDA to grow, 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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