In this article, we will look at the 12 Best Growth Stocks to Buy and Hold for the Long Term.
What’s the Bull Case for US Equities?
The market closed last week mostly lower, however, the S&P 500 has been up more than 7% since April 11, indicating a returning positive sentiment. On May 10, David Lefkowitz, Equity Strategist at UBS Global Wealth Management, joined CNBC to discuss his bull case for the US equities. Lefkowitz acknowledged the volatility that has been around since the tariff announcement; however, he believes that backdrop remains fairly constructive. He elaborated that the market has had some significant buy signals since early April, characterised by the volatility index giving one of the highest readings, investor sentiment being cautious, and investor positioning has been depressed. Historically speaking, whenever these things have happened in the past, the US equities have performed exceptionally well in the preceding 6 to 12 months. Lefkowitz noted that he is not too concerned with the day-to-day news and volatility, as the market will get choppy on trade negotiation deals. Rather, he is more focused on the bigger picture, which indicates that stocks will ultimately end up higher over the next 12 months.
While answering a question regarding the recent rebound in the market, Lefkowitz highlighted that when the volatility index comes down, as it has over the past few weeks, history tells us that the market does not make new lows. Although the market will still be chopping a little. However, it is anticipated to stay within the historic average of 5%. Moreover, the equity strategist is also not concerned about the valuations and believes that as soon as the companies start posting earnings growth, the backdrop will help the market reach its next high.
While talking about his most convicted sectors, Lefkowitz noted that he likes secular growth stocks. He elaborated that growth as a sector was hit earlier this year due to doubts regarding AI trends and its ability to generate a return on investment. This has resulted in the sector being at the bottom of the market. However, Lefkowitz believes that the demand for AI products and the sophisticated infrastructure will keep growing for at least the next few years, thereby generating sustainable earnings growth.
With that, let’s take a look at the 12 best growth stocks to buy and hold for the long term.
A financial analyst looking at a monitor displaying the stocks of the public company.
Our Methodology
To compile the list of 12 best growth stocks to buy and hold for the long term, we used the Finviz stock screener, Seeking Alpha, and Insider Monkey’s Q4 2024 hedge fund database. Using the screener, we aggregated a list of growth stocks that have grown their sales by at least 30% over the past 5 years. Next, we cross-checked the 5-year sales growth for each stock from Seeking Alpha and ranked the stocks in ascending order of the number of hedge fund investors.
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).
12 Best Growth Stocks to Buy and Hold for the Long Term
12. BioNTech SE (NASDAQ:BNTX)
5-Year Sales Growth: 90.27%
Number of Hedge Fund Holders: 35
BioNTech SE (NASDAQ:BNTX) is an international biotechnology company based in Germany. The company mainly focuses on developing immunotherapies and vaccines for cancer and other infectious diseases. It is also recognized as one of the pioneers in mRNA technology, a technology that was central in developing the first vaccine for COVID-19 in collaboration with Pfizer.
On May 7, Leerink Partners analyst Daina Graybosch maintained a Buy rating on the stock. The analyst highlighted the strategic importance of the company’s COVID-19 vaccines. Graybosch noted that the US regulatory challenges could potentially impact vaccine sales, however, BioNTech SE (NASDAQ:BNTX) has been reporting stable interactions with the FDA regarding its vaccines. Graybosch pointed out that the sales of vaccines are critical to funding its oncology plans. Moreover, the analyst also likes the development strategy for the company’s bispecific program called BNT327. The program is expected to stand out in the mid-term as it involves a combination of traditional chemotherapy and antibody drug conjugates.
During its fiscal first quarter results for 2025 BioNTech SE (NASDAQ:BNTX) highlighted that clinical data for phase 2 studies of BNT327 shows a median overall survival of 16.8 months. This compares favorably to existing treatments like Roche’s Tecentriq plus chemo. The company ranks as one of the best growth stocks to buy and hold for the long term.
11. Moderna, Inc. (NASDAQ:MRNA)
5-Year Sales Growth: 127.46%
Number of Hedge Fund Holders: 44
Moderna, Inc. (NASDAQ:MRNA) is another biotechnology company that specializes in mRNA technology. The company focuses on curing infectious diseases, immuno-oncology, rare diseases, autoimmune diseases, inflammatory diseases, and cardiovascular disorders. It has a portfolio of 44 therapeutics and vaccines.
On May 5, Courtney Breen from Bernstein maintained a Hold rating on the stock with a price target of $28. Breen noted that despite Moderna, Inc.’s (NASDAQ:MRNA) cost-saving measures, the fiscal quarter 2025 revenue remained below consensus. The company’s first-quarter revenue was $108 million, down from $167 million in Q1 2024. Management noted that the decline was due to lower net product sales. Breen highlighted that while the company reaffirmed its 2025 revenue guidance of $1.5 billion to $2.5 billion, uncertainties around regulatory timelines and product uptake-especially for upcoming PDUFA decisions, limit near-term revenue growth. However, in the longer term, the analyst believes that future growth will be driven by successful pipeline execution.
The fiscal first quarter release indicates a strong product pipeline for Moderna, Inc. (NASDAQ:MRNA). The pipeline includes Next-generation COVID-19 vaccine (mRNA-1283), mRNA-1345 for Respiratory syncytial virus, mRNA-1083 and mRNA-1010 for seasonal flu, among others. The company has multiple products in the late-stage trials, close to regulatory submissions. It ranks as one of the growth stocks to buy and hold for the long term.
10. Ascendis Pharma A/S (NASDAQ:ASND)
5-Year Sales Growth: 104.99%
Number of Hedge Fund Holders: 45
Ascendis Pharma A/S (NASDAQ:ASND) is an international technology company engaged in developing therapies using its proprietary TransCon technology platform. Its product portfolio and pipeline include treatments for growth hormone deficiency, endocrinology, rare diseases, chronic hypoparathyroidism, and cancer.
On May 5, Joseph Schwartz from Leerink Partners maintained a Buy rating on the stock with a price target of $200. The analyst noted the strong performance of YORVIPATH to be one of the reasons behind his bullish sentiment. Ascendis Pharma A/S (NASDAQ:ASND) generated €44.7 million in revenue with more than 1,750 prescriptions for YORVIPATH. These figures exceeded guidelines, signaling significant growth potential.
In addition, Schwartz also noted that the recent submission of the New Drug Application for TransCon CNP, aimed at treating achondroplasia, adds further upside to the company’s valuation. Ascendis Pharma A/S (NASDAQ:ASND) has grown its revenue by more than 104% over the past 5 years, making it one of the best growth stocks to buy and hold for the long term.
Artisan Mid Cap Fund stated the following regarding Ascendis Pharma A/S (NASDAQ:ASND) in its Q1 2025 investor letter:
“Among our top Q1 contributors were Spotify, Ascendis Pharma A/S (NASDAQ:ASND) and AutoZone. Shares of Ascendis experienced strength in the quarter due to the launch of its latest drug, Yorvipath. The drug treats hypoparathyroidism—a rare endocrine disorder with limited effective treatments. Our view is that this will be a significant profit cycle driver, given the sizable addressable market and the unmet needs in current care. Yorvipath was approved and launched in December, and the company’s latest earnings results showed the launch is running well ahead of expectations. While it’s still early, initial prescription data supports our bullish view of sales that could exceed market expectations by a wide margin. Meanwhile, Ascendis has a third promising drug, Transcon CNP (to treat achondroplasia), that was submitted for FDA approval in Q1 and could be launched in 2026.”
9. argenx SE (NASDAQ:ARGX)
5-Year Sales Growth: 105.96%
Number of Hedge Fund Holders: 47
argenx SE (NASDAQ:ARGX) is a commercial-stage biotechnology company that focuses on developing antibody therapeutics for autoimmune diseases and cancer. It uses its proprietary discovery platform to leverage unique characteristics of the llama immune system and engineer antibody medicines. Its lead products, VYVGART and VYVGART HYTRULO, are approved in the United States, Europe, and Japan.
On May 9, Douglas Tsao, an analyst at H.C. Wainwright, reiterated a Buy rating on the stock with a price target of $720. The analyst noted the company grew net product sales for VYVGART, which exceeded market expectations. The company reported its fiscal first quarter results for 2025 on May 8. Management noted that it generated a total operating income of $807 million, driven primarily by $790 million in product net sales, which represents a 99% increase compared to the same quarter in the previous year. The product sales of argenx SE (NASDAQ:ARGX) were geographically diversified, with the majority of sales coming from the US.
The analyst, Tsao, noted that the upcoming launch of Vyvgart’s prefilled syringe (PFS), expected to improve patient accessibility and convenience. Management of the company also expects that the self-injection is expected to further expand patient access by enabling easier self-administration and reaching new patient populations. argenx SE (NASDAQ:ARGX) ranks as one of the best growth stocks to buy and hold for the long term.
Artisan Small Cap Fund stated the following regarding Argenx SE (NASDAQ:ARGX) in its Q4 2024 investor letter:
“We ended our investment campaigns in Argenx SE (NASDAQ:ARGX), Tyler Technologies and Interparfums. Shares of Argenx have continued their year-to-date ascent due to multiple positive developments, including FDA approval to promote VYVGART® for chronic inflammatory demyelinating polyradiculoneuropathy (CIDP) and strong sales execution of VYVGART®’s first approved indication in myasthenia gravis. While we continue to have high conviction, the company has outgrown our small-cap mandate, and we exited our position after a successful multiyear investment campaign.”
8. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
5-Year Sales Growth: 52.37%
Number of Hedge Fund Holders: 49
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is a commercial-stage biopharmaceutical company that develops innovative medicines based on RNAi technology. RNAi is a Nobel Prize-winning biological process that allows for the selective silencing of specific genes, preventing the production of disease-causing proteins. The company’s pipeline is focused on three main areas, including genetic medicines for rare diseases, cardio metabolic diseases, and hepatic infectious diseases.
On March 6, Analyst Kostas Biliouris of BMO Capital maintained a Buy rating on the stock with a price target of $300. The analyst highlighted a significant increase in the sales of Amvuttra, which was recently approved for ATTR-CM. The latest IQVIA data showed a 42% week-over-week sales growth, indicating robust market uptake and positioning Amvuttra as a strong competitor against existing treatments like Attruby. During the fiscal first quarter of 2025, Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) reported growing its revenue by 28% year-over-year to reach $469 million. This was driven by growth in the US TTR franchise, which deals with Amvuttra. The total TTR franchise segment revenue grew by 36%, driven by the US region sales, which improved 45% on a year-over-year basis and 5% quarter-over-quarter.
The analyst also noted that Amvuttra’s US sales could surpass $300 million in the second quarter, which is notably higher than the current market consensus. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) reiterated 2025 financial guidance forecasting combined net product revenues of $2.05 billion to $2.25 billion, reflecting a 31% year-over-year increase at the midpoint. It is one of the best growth stocks to buy and hold for the long term.
7. Palantir Technologies Inc. (NASDAQ:PLTR)
5-Year Sales Growth: 30.90%
Number of Hedge Fund Holders: 64
Palantir Technologies Inc. (NASDAQ:PLTR) is a technology company that focuses on big data analytics and data platforms. It operates through four main platforms, including Gotham, Foundry, Apollo, and the Artificial Intelligence Platform.
On May 7, analyst Tyler Radke from Citi maintained a Hold rating on the stock with a price target of $110. The analyst acknowledged the company’s promising developments, such as its expanding consumer demand and multiple new customers. This was evident from Palantir Technologies Inc.’s (NASDAQ:PLTR) Q1 2025 results. The company grew its total revenue by 39% year-over-year to reach $884 million. It closed 139 deals valued over $1 million and also marked the highest quarter of US commercial total contract value of $810 million, reflecting a 183% increase year-over-year. Lastly, the total customer count, as acknowledged by the analyst, also grew 39% year-over-year.
However, despite the impressive performance, the analyst remains cautious about Palantir Technologies Inc. (NASDAQ:PLTR) due to the ongoing macroeconomic uncertainties, which could impact its growth trajectory. The management remains confident in its ability to tackle the challenges and has raised the full year revenue guidance to $3.890 billion and $3.902 billion. It is one of the best growth stocks to buy and hold for the long term.
Ithaka US Growth Strategy stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q1 2025 investor letter:
“From the front-lines of warzones to Fortune 500 enterprises, Palantir Technologies Inc. (NASDAQ:PLTR) builds software to address high-level action items, respond to defense and security concerns, and improve organizational efficiency. The company offers a number of software products from data analysis and curation (Palantir Gotham and Foundry) to a cloud-based operations software (Apollo). The company rose to popularity, in part, due to several government contracts (~55% of revenues) arising from recent and continuous global conflicts. In addition to creating generative AI defense solutions for governments across the globe, commercial customers (~45% of revenues) have flocked to the company’s security and data analysis solutions to monitor and analyze business data and protect sensitive information. The stock’s rise in the quarter was due to a strong earnings report that beat Street expectations as well as investor excitement with regard to the company’s ability to further monetize its AI product across its growing customer base.”
6. Shopify Inc. (NASDAQ:SHOP)
5-Year Sales Growth: 40.26%
Number of Hedge Fund Holders: 64
Shopify Inc. (NASDAQ:SHOP) is an international e-commerce company based in Canada. It provides businesses with an all-in-one platform that allows them to create and operate online stores. The platform also offers an integrated back-office system where merchants can manage products and inventory, process orders and payments, and ship orders.
On May 9, J.P. Morgan analyst Reginald Smith maintained an Overweight rating on the stock and revised the price target to $115 from $124. The analyst noted that Shopify Inc. (NASDAQ:SHOP) recently announced its Q1 2025 results, highlighting 27% year-over-year growth, driven largely by a 29% rise in Merchant Solutions. Smith noted that the growth not only indicates strength in payments but also leads the company’s revenue to surpass Street targets. Moreover, the free cash flow margins of 15% also met the market consensus.
Smith also emphasized Shopify Inc.’s (NASDAQ:SHOP) competitive moat, broad product offerings, ease of use, and scale as key advantages fueling industry-leading growth. He projects compounded annual growth rates of 20% for revenue and 29% for operating profit through 2026. The company ranks as one of the growth stocks to buy and hold for the long term.
5. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
5-Year Sales Growth: 52.37%
Number of Hedge Fund Holders: 77
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is an international cybersecurity company that provides a range of services through its cloud-native Falcon platform. The company specializes in protecting end-points, identities, cloud-workloads, and data. The company operates on a software-as-a-service subscription model with over 29 cloud modules, serving diverse markets.
On May 7, Analyst Shaul Eyal from TD Cowen maintained a Buy rating on the stock with a price target of $450. The analyst noted that management is strategically reducing staff by 5% while also investing in critical growth areas. This restructuring is expected to enhance operational effectiveness and better align resources with growth opportunities.
Financially speaking, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) grew its annual recurring revenue by 23% year-over-year to reach $4.24 billion as of January 31, 2025. This is significant as the growth places the company on track toward its long-term goal of $10 billion ARR by fiscal 2031. Moreover, the revenue of the company also grew 29% year-over-year to reach $3.95 billion, driven by an increase in subscription revenue. Notably, the company achieved a 97% gross retention rate, advocating for the long-term prospects of the company. It is one of the best growth stocks to buy and hold for the long term.
Aristotle Atlantic Large Cap Growth Strategy stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q1 2025 investor letter:
“CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cybersecurity products and services that offer endpoint protection and threat intelligence solutions, enabling customers to prevent damage from targeted attacks, detect advanced malware and search all endpoints. The company’s open cloud architecture enables it and third-party partners to rapidly innovate, build and deploy new cloud modules that can provide customers with enhanced functionality across a myriad of use cases.
We see the cloud cybersecurity market as positioned to experience strong growth over the next few years, driven by continued migration from on-premises to cloud-based architecture. We believe CrowdStrike can benefit from this trend due to its early-mover advantage, multiple product offerings and native integrations with leading cloud platforms. The increasing threats from state-sanctioned cybercriminals using high-performance computing and AI necessitate higher spending on advanced cybersecurity products. The total addressable market (TAM) is projected to grow significantly over the next four calendar years. Additionally, CrowdStrike’s cloud-native architecture and unified platform approach provide competitive advantages, resulting in high customer retention and widespread adoption of multiple modules.”
4. Snowflake Inc. (NYSE:SNOW)
5-Year Sales Growth: 68.78%
Number of Hedge Fund Holders: 85
Snowflake Inc. (NYSE:SNOW) is a technology company that specializes in providing a cloud-based platform that provides data cloud and artificial intelligence solutions. The company relies on cloud-native architecture, which consists of three integrated layers including compute, storage, and cloud services.
Snowflake Inc. (NYSE:SNOW) reported its fiscal fourth quarter results for 2025 on February 26. It reported a revenue of $943.3 million, reflecting 28% year-over-year growth driven by a robust demand for its AI platform and data cloud. Management noted that it achieved a net revenue retention rate of 126%, indicating customer satisfaction. The company had 580 customers generating more than $1 million in product revenue over the trailing 12 months, a 27% increase year-over-year, showing growth in large, high-value customer accounts.
On May 6, Snowflake Inc. (NYSE:SNOW) announced that it has expanded its AI Data Cloud platform to deliver specialized, AI-powered solutions tailored for the automotive industry. Management noted that 80% of major automotive OEMs already rely on Snowflake’s platform for their data and AI initiatives, and now the company is also helping manufacturers like CarMax and Nissan drive innovation. The company ranks as one of the best growth stocks to buy and hold for the long term.
Artisan Mid Cap Fund stated the following regarding Snowflake Inc. (NYSE:SNOW) in its Q1 2025 investor letter:
“During the quarter, we initiated new GardenSM positions in Baker Hughes, Snowflake Inc. (NYSE:SNOW) and Viking. Snowflake is a leading cloud data warehouse and analytics platform, benefiting from the ongoing shift away from on-premise infrastructure. Its cloud-native architecture enables greater scalability, faster performance and improved efficiency for businesses managing large data sets. We see upside as a new management team refines the company’s sales and marketing strategy, aligning it with the growing demand for tools that help organizations organize and analyze data. While competition bears watching, we believe Snowflake is well positioned to help its customers structure data to take advantage of increasingly powerful AI models.”
3. AppLovin Corporation (NASDAQ:APP)
5-Year Sales Growth: 36.49%
Number of Hedge Fund Holders: 95
AppLovin Corporation (NASDAQ:APP) is a mobile technology company that provides end-to-end artificial intelligence solutions. The company primarily operates through two main business segments, including the Advertising and Apps segment. Under the Advertising Segment, the company operates a range of platforms, including AppDiscovery, Max, Adjust, and Wurl. On the other hand, through its Apps Segment, the company operates a portfolio of free-to-play mobile games through its own or partner studios.
On May 9, Bank of America Securities analyst Omar Dessouky reiterated a Buy rating and $580 price target on the stock. The analyst based his bullish sentiment on the strong Q1 2025 performance of AppLovin Corporation (NASDAQ:APP), particularly liking the Advertising segment. The segment demonstrated a 78% year-over-year growth to reach $1.158 billion. This led the total revenue of the company to $1.48 billion, reflecting a 40% growth year-over-year. The analyst highlighted that this growth was mainly driven by gaming advertisers and a notable surge in eCommerce revenue, surpassing Bank of America’s estimates.
Dessouky also pointed to AppLovin Corporation’s (NASDAQ:APP) new self-service dashboard, which is expected to accelerate advertiser onboarding and enhance future growth prospects. The company ranks as one of the best growth stocks to buy and hold for the long term.
Carillon Eagle Mid Cap Growth Fund stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q1 2025 investor letter:
“AppLovin Corporation (NASDAQ:APP) is a platform for mobile application developers to grow their apps through user acquisition, monetization, and analytics. The company continued to report healthy growth and provided guidance indicating robust future growth, thanks to the strong reception of its latest tools by existing customers and its expansion into new verticals. However, post-earnings, shareholders became concerned about a short seller’s report questioning data collection practices. Management addressed these issues thoroughly, but lingering questions and general tariff related news impacting the broader market have compounded concerns.”
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
5-Year Sales Growth: 30.81%
Number of Hedge Fund Holders: 96
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that focuses on performance computing, graphics, and visualization technologies. The company creates computing products and solutions for a variety of customer markets. It operates through four main business segments, including Data Center, Client, Gaming, and Embedded.
On May 8, DBS analyst Amanda Tan maintained a Hold rating on the stock, highlighting growth prospects and certain risks for the company. The analyst noted that Advanced Micro Devices, Inc. (NASDAQ:AMD) demonstrated strong growth in the data center segment, driven by rising demand for AI technologies, including the new AI accelerators. An instance of increasing demand for the company’s products can be witnessed in this March 31 press release. Advanced Micro Devices, Inc. (NASDAQ:AMD) announced that Oracle Cloud Infrastructure launched new Compute E6 Standard shapes powered by AMD’s 5th Gen EPYC processors. Management noted that the 5th Gen AMD EPYC processors offer enhancements such as higher thread density, improved memory bandwidth, and more PCIe Gen5 lanes for input and output.
However, Tan remains cautious due to the tariff situation, which can reduce GPU revenue for the company. Moreover, the analyst also believes that the heavy dependence on the PC market makes it vulnerable to economic downturns.
Regardless of these challenges, Advanced Micro Devices, Inc. (NASDAQ:AMD) grew its Q1 2025 revenue by 36% year-over-year to reach $7.4 billion. Whereas gross profits also improved by 46% during the same time to reach $3.74 billion. It is one of the best growth stocks to buy and hold for the long term.
Artisan Global Opportunities Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2024 investor letter:
“Among our top detractors were Advanced Micro Devices, Inc. (NASDAQ:AMD), Novo Nordisk and Danaher. Shares of AMD declined in Q4, which capped off a frustrating year of stock performance that did not seem to match its fundamental progress. Regarding its AI opportunity, the company accomplished everything we had hoped for over the past 18 months. It successfully entered the market with its MI300 graphic processing unit (GPU) chip and raised its latest 2024 AI-related revenue guidance to $5.0 billion from $4.5 billion. However, its shares have experienced weakness for two primary reasons. First is the emergence of custom AI accelerator chip solutions from Broadcom and Marvell (a Q4 buy) as alternatives to the GPU solutions from NVIDIA and AMD. While this competitive threat is more significant than we had initially anticipated, we continue to be excited about AMD’s opportunity moving forward. We believe the AI-related market will grow to $400 billion–$500 billion in the next three years (compared to $100 billion in 2024). We expect that NVIDIA’s market share will fall from ~90%in2024to60%–80%overthesameperiodasitcedes market share to AMD (from5%in2024to10%–20%) and custom accelerator solutions (from 5% in 2024 to 10%–20%). Under these assumptions, we expect AI GPUs to double AMD’s total 2024 sales. Second is cyclical struggles within other areas of its business. While data center revenues have more than doubled over the past two years, the gaming business is down more than 60%, and embedded (specialized chips found in various industrial and consumer products) is down20%.As its data center business continues to grow and the cyclical areas of its business bounce back, we expect AMD to deliver stronger earnings growth.”
1. NVIDIA Corporation (NASDAQ:NVDA)
5-Year Sales Growth: 64.24%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is a leading international technology company specializing in graphics processing units and sophisticated computer infrastructure. The company’s GPUs and software applications are powering the AI revolution around the world.
On May 8, DBS analyst Fang Boon Foo maintained a Buy rating on the stock. The analyst highlighted the dominant market position of NVIDIA Corporation (NASDAQ:NVDA), particularly noting its high-end GPUs. Foo noted that the company differentiates on the back of its innovative approach to annually upgrading its AI accelerators, with the upcoming Blackwell chips set to replace the current Hopper generation. Moreover, its fundamentals remain strong, demonstrated by record year-over-year growth and a robust demand for its products.
During the fiscal fourth quarter of 2025, NVIDIA Corporation (NASDAQ:NVDA) reported a quarterly revenue of $39.3 billion, up 12% from Q3 and up 78% from a year ago. The Data Center segment again posted a record quarterly revenue of $35.6 billion, reflecting a 93% increase year-over-year. The company ranks as the best growth stock to buy and hold for the long term.
Ithaka US Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is the undisputed leader in accelerated computing, with dominant market share in Graphics Processing Units (GPUs) powering AI workloads across data centers, edge devices, and emerging platforms. Its end-to-end ecosystem—from silicon to software (CUDA, networking, and AI frameworks)—creates high switching costs and a widening competitive moat. With secular demand for AI infrastructure still in its early innings, Nvidia stands to benefit from sustained topline growth and strong operating leverage. In early January, a little known Chinese AI company, DeepSeek, released its large language model (LLM), DeepSeek-R1, to an unexpecting world. This model was purportedly trained on very few high-end Nvidia chips and was highly efficient when compared to other leading models. This release set off a chain reaction where investors have had to grapple with the idea that the world may not need as many GPUs as previously thought, which hampered the Nvidia buy case and sent the P/E multiple down to its cheapest level in the past 5 years.”
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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