In this article, we will discuss the 12 Most Promising Growth Stocks to Buy Now.

Technology stocks are flashing bearish signals as a rotation from all-time highs gathers pace. According to strategists at Bank of America, investors should start managing risk amid mounting headwinds, which could trigger a broader market selloff.

The sentiments come on the heels of tech-heavy Nasdaq 100 tumbling by more than 4% in the aftermath of solid employment data, fueling talks of interest rate hikes amid soaring inflation.

“The NDX rally extended slightly beyond expectation, breaking above 30,000. The trend became stretched relative to our measured move targets,” the strategist said, explaining that the 14-week Relative Strength Index (RSI) reached overbought levels and turned down, forming a bearish engulfing week.”

While chip stocks have led the rally in recent years, technicals signal the group is overbought, suggesting a period of higher volatility as valuations get out of hand. Bank of America strategists insist that technical analysis supports the need for investors to start playing defense as the risk-reward balance deteriorates.

Amid heightened volatility, promising growth stocks offer one of the best ways to shrug off the selloff. The stocks stand out for their stronger tailwinds in artificial intelligence, cloud security, e-commerce, and medical technology. Capital is expected to gravitate towards companies with an impressive record in combining growth with strong fundamentals, such as earnings growth and consistent cash flow generation.

With that in mind, let’s take a look at some of the most promising growth stocks to buy now.

Our Methodology

To compile a list of 12 Most Promising Growth Stocks to Buy Now, we used the Finviz screener to identify Growth stocks that boast 10% or more sales growth over the past five years and projected to grow earnings by over 20% over the next five years. We trimmed the list by focusing on stocks with a Buy or better rating from analysts and with an upside potential of more than 20%. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among elite hedge funds in Q1 2026. We ranked the stocks in ascending order based on the number of hedge funds that hold stakes in them.

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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

Most Promising Growth Stocks to Buy Now

12. Argenx SE (NASDAQ:ARGX)

Stock Upside Potential: 20.98%

Expected 5-Year Earnings Growth: 32.29%

Number of Hedge Fund Holders: 42

Argenx SE (NASDAQ:ARGX) is one of the most promising growth stocks to buy now. On June 4, H.C. Wainwright reiterated a Buy rating and a $940 price target on Argenx SE (NASDAQ:ARGX). The positive stance is in response to the company’s recent data showing VYVGART’s effectiveness across autoimmune rheumatic diseases.

According to Luc Truyen, Chief Medical Officer at Argenx, the data underscore the rationale for targeting FcRn in autoimmune diseases and the potential to address unmet patient needs. The data support a favorable safety profile across multiple autoimmune rheumatic diseases. The company expects additional positive results from evaluating VYVGART in myositis and Sjogren’s disease next year.

Trial results from the ALKIVIA+ study indicate that VYVGART has the potential to deliver meaningful and sustained clinical benefit for patients with myositis. The candidate drug remains favorable across rheumatology indications. The US Food and Drug Administration has already approved a label expansion for VYVGART for the treatment of patients with generalized myasthenia gravis. The approval is based on data from the Phase 3 ADAPT SERON study.

Argenx SE (NASDAQ:ARGX) is a global immunology biotechnology company focused on developing antibody-based medicines for severe autoimmune diseases. Using proprietary research platforms like SIMPLE Antibody, they translate complex immunology breakthroughs into first-in-class therapies.

11. Snowflake Inc. (NYSE:SNOW)

Stock Upside Potential: 22.32%

Expected 5-Year Earnings Growth: 44.34%

Number of Hedge Fund Holders: 80

Snowflake Inc. (NYSE:SNOW) is one of the most promising growth stocks to buy now. On June 4, Cantor Fitzgerald reaffirmed its Overweight rating on Snowflake Inc. (NYSE:SNOW) with a $282 price target, highlighting upside from the current $241.28 share price and $83.6 billion market cap. The firm’s bullish stance aligns with broader Wall Street consensus, reflecting optimism around Snowflake’s evolving role in the data cloud space.

At the Snowflake Summit 26 in San Francisco, management outlined its transformation from a traditional data warehouse to an enterprise agentic control plane. This strategic shift is reinforced by the recent Natoma acquisition and a $6 billion AWS infrastructure commitment, signaling that capital allocation is firmly aligned with long‑term platform growth. Cantor noted rising conviction that Snowflake will benefit near‑term from embedding intelligence and AI into its contextual data layer.

Looking ahead, management projects GAAP profitability by Q4 fiscal 2028, supported by margin leverage and tighter control of stock‑based compensation. SBC is expected to decline from 40% of revenue in FY25 to 13% by FY28, addressing a key investor concern. Combined with an expanding total addressable market and AI tailwinds, Snowflake’s trajectory suggests meaningful upside potential for shareholders.

Snowflake Inc. (NYSE:SNOW) delivers cloud‑based data solutions through its Data Cloud platform, enabling businesses, partners, and providers to break down silos and unlock value. Its ecosystem supports diverse use cases, including data lakes, warehousing, engineering, application development, science, and secure data sharing.

10. Arista Networks, Inc. (NYSE:ANET)

Stock Upside Potential: 27.85%

Expected 5-Year Earnings Growth: 21.84%

Number of Hedge Fund Holders: 85

Arista Networks (NYSE:ANET) is one of the most promising growth stocks to buy now. On June 9, Arista Networks (NYSE:ANET) unveiled the 7060XE7 Series, a portfolio of 1.6T networking platforms. The platforms are designed for rack-scale AI infrastructure featuring multiple configurations to support the company’s EOS and open network operating systems.

The platforms come with Linear Pluggable Optics that reduce interconnect power consumption by up to 60%. It also provides a bandwidth of 100 terabits per second, with 1.6 terabits per second across ports. The platform’s ability to address the extreme density, power, and thermal efficiency of the AI era makes it well-suited to scale up and scale out AI fabrics for liquid- and hybrid-cooled environments.

The 7060XE7 Series underscores Arista Networks’ transition from high-performance switches to comprehensive rack-scale systems. Consequently, the company is well-positioned to deliver massive-scale 1.6T systems that combine world-class reliability with customer support in building AI fabrics for maximum performance.

Arista Networks, Inc. (NYSE:ANET) develops high-performance networking equipment and software for massive data centers, AI training clusters, and enterprise campuses. They compete with legacy vendors by providing high-speed Ethernet switches and open, automated network management software used by major cloud titans like Microsoft and Meta.

9. Shopify Inc. (NASDAQ:SHOP)

Stock Upside Potential: 44.46%

Expected 5-Year Earnings Growth: 30.62%

Number of Hedge Fund Holders: 88

Shopify Inc. (NASDAQ:SHOP) is one of the most promising growth stocks to buy now. On May 28, UBS reiterated a Neutral rating on Shopify Inc. (NASDAQ:SHOP) and a $130 price target. The research firm expects the Retail POS business to be a key driver of growth, as it currently accounts for 12% of gross merchandise volume.

According to UBS, the Retail POS remains an underappreciated part of the business while being part of the long-term growth algorithm. It expects the business to contribute between 300 and 500 basis points of Shopify’s 10-year gross merchandise volume compound annual growth rate of up to 21%. It also expects the business to contribute between 100 and 200 basis points of a 10-year gross profit compound annual growth rate of between 15% and 20%.

The expected growth would come against the backdrop of the differentiated offering that combines Shopify’s eCommerce and ecosystem with in-store POS. The company will also benefit, as the market is relatively fragmented and lacks a clear leader.

Shopify Inc. (NASDAQ:SHOP) is a comprehensive, cloud-based e-commerce platform used by individuals and businesses to create, manage, and scale online stores. It provides everything needed to run a digital business, including website building, inventory tracking, payment processing, and shipping management, without requiring coding or technical expertise.

8. AppLovin Corporation (NASDAQ:APP)

Stock Upside Potential: 30.20%

Expected 5-Year Earnings Growth: 41.74%

Number of Hedge Fund Holders: 91

AppLovin Corp (NASDAQ:APP) is one of the most promising growth stocks to buy now. On June 9, Piper Sandler reiterated an Overweight rating on AppLovin Corp (NASDAQ:APP) and a $665 price target. The research firm remains optimistic despite growing concerns about Meta Platforms, which has the scale and first-party data to bypass ad tech platforms.

The company has come under pressure amid growing concerns that Meta Platforms’ more aggressive bidding for off-platform mobile gaming inventory could compress margins and volume share. Piper Sandler insists the competitive pressure has always existed, but has never stopped AppLovin from growing at above-market rates.

Separately, Applovin delivered impressive first-quarter results, driven by mobile gaming advertising and e-commerce growth. Revenue in the quarter was up 59% and exceeded guidance by 5%. It represented the company’s largest revenue beat in four quarters. The company has already confirmed its Axon advertising platform will open to all advertisers, a shift that will end the closed-ended system.

AppLovin Corporation (NASDAQ:APP) is a leading AI-driven mobile technology platform that helps businesses and developers acquire users, monetize their applications, and analyze advertising performance. Its sophisticated machine-learning engine processes billions of in-app signals to optimize digital advertising in real-time.

7. Palantir Technologies Inc. (NASDAQ:PLTR)

Stock Upside Potential: 43.36%

Expected 5-Year Earnings Growth: 59.75%

Number of Hedge Fund Holders: 96

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the most promising growth stocks to buy now. On June 4, Baird reiterated an Outperform rating on Palantir Technologies Inc. (NASDAQ:PLTR) and a $200 price target. The positive stance follows a constructive discussion with management that centered on the company’s strategic position, product, and business model differentiation.

The research firm has since downplayed investor concerns about competition pressure from the likes of Anthropic and OpenAI. Consequently, it maintains a positive view of the company given its market differentiation. While foundational models are an important aspect of the technology landscape, they are allowing customers to extract greater value.

Palantir’s edge amid foundation models stems from its ability to harness artificial intelligence for customers. The company has already inked a multi-year, multimillion-dollar partnership with McCarthy Building Companies to integrate AI across construction operations. Additionally, it boasts industry-leading growth and margins, which make it a top investment idea.

Palantir Technologies Inc. (NASDAQ:PLTR) is an American software company specializing in big data analytics and artificial intelligence. It builds platforms that allow organizations, governments, and enterprises to integrate vast, disconnected datasets, visualize information, and make complex, data-driven decisions.

6. Amphenol Corporation (NYSE:APH)

Stock Upside Potential: 25.50%

Expected 5-Year Earnings Growth: 23.51%

Number of Hedge Fund Holders: 112

Amphenol Corporation (NYSE:APH) is one of the most promising growth stocks to buy now. On May 27, Evercore ISI reiterated an Outperform rating on Amphenol Corporation (NYSE:APH) and maintained a $180 price target.

The bullish stance comes as the research firm expects the company’s revenue base to receive a boost of between $1.2 billion and $1.5 billion from the CommScope acquisition. It also expects the company’s total data center fiber portfolio to reach about $3 billion, making it one of the largest in AI and data center fiber connectivity.

Consequently, Evercore ISI expects Amphenol’s annualized AI revenue run rate to exceed $9 billion by year-end, up from between $2 billion and $2.2 billion in the first quarter. It also estimates Corning’s enterprise fiber to reach approximately $4 billion. The robust growth would come as the CommScope acquisition continues to provide scaled positions across passive copper, active copper, and active fiber connectivity.

Amphenol Corporation (NYSE:APH) designs, manufactures, and markets electrical, electronic, and fiber optic connectors, cable assemblies, antennas, and sensors. The company supplies mission-critical components that connect and power devices across virtually every major technology and industrial sector.

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