In this article, we will take a detailed look at the most profitable growth stocks to buy now.
The growth factor in investing refers to companies that grow their revenue and earnings at rates significantly above the market. These companies are usually small and young, operate in high-growth and less mature industries, and often lack the financial stability and resilience of their more mature counterparts. As a result, the growth factor becomes highly attractive and outperforms during secular bull markets (such as the 2010-2021 period) dominated by macroeconomic stability and low interest rates. On the other hand, the return of growth stocks significantly lags behind during bear markets or periods of heightened uncertainty and volatility. For reference, the growth factor underperformed significantly during the 2022 bear market as well as the 2025 year-to-date.
While the growth strategy delivers superior returns most of the time, we believe there are ways to refine it and make it more reliable. One of the weaknesses of most growth stocks is weak profitability (due to aggressive investments in working capital for growth or R&D), which makes them more susceptible to economic downturns. The solution to this is to incorporate a profitability criterion as well – growth stocks with strong profitability will navigate economic slowdowns better and hold up well even during recessions. Our hypothesis is confirmed by modern financial research; the Fama-French 5-Factor Model (2015) introduced a profitability factor which, as the authors claim, can explain stock returns – stocks of companies with high profitability tend to outperform those with low profitability.
READ ALSO: 10 Most Profitable Blue Chip Stocks to Buy Now
As legendary Warren Buffett has advised, to be greedy when others are fearful, we believe the best way to make money in the market is to engage in smart contrarian bets when everyone else is reluctant. The US stock market is still more than 10% below its all-time high as market participants are still digesting the tariffs situation as well as the new economic data, which is quite disappointing. The Philadelphia Fed manufacturing index decreased to -26.4 in April, well below expectations and the lowest reading since April 2023. It is also the second lowest level outside of official recessions, which hints towards the possibility that we are already in a recession that will only be declared at a later date. The employment, shipments, and new orders components all decreased as well, further pointing towards a slowing economy.
Business surveys have also been quite grim – Hamilton Lane recently reported that at least 62% of CEOs see a recession on the horizon, while the 6-month Capex expectations fell to the lowest level since the pandemic. It is now clear that pretty much everyone is thinking about a recession now, and that’s actually the most bullish indicator out there. The stock market is a forward-looking animal, meaning that its prices reflect the state of the economy 6-12 months from now. Given that the average recession in the US has historically lasted for about 3-4 quarters, and assuming that revised Q1 2025 data will be later recognized as the beginning of the recession, odds are that the US economy will already return to growth in calendar 2026. Also, history shows that the forward-looking stock market tends to disappoint the majority of investors, which means that if the majority expects a recession, then odds are that it is already priced in and that the market bottom is already in the rear-view mirror.
To sum up, the fact that the US economy is in a slowdown and a state of uncertainty is pretty much obvious at this point. The key takeaway for readers is that stock prices are forward-looking and reflect the investors’ outlook for several quarters ahead. Once it becomes completely clear that calendar 2026 will be past the current tariff turmoil, the US stock market will very likely return to growth. It is therefore an opportune moment to look for the most profitable growth stocks to add in anticipation of a broad market melt-up.
A financial advisor wearing a suit, pointing to a graph demonstrating success and growth in the financial sector.
Our Methodology
To compile our list of most profitable growth stocks, we used a screener to identify stocks with at least 30% revenue CAGR in the last 5 years and a net profit margin of at least 20%. Then we included in the article the top 13 stocks with the highest net profit generated in the most recent fiscal year, ranked in ascending order. We also included the number of hedge funds that own each stock, as per Insider Monkey’s Q4 2024 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).
13. argenx SE (NASDAQ:ARGX)
Net Profit in the latest fiscal year: $0.83 billion
Revenue CAGR last 5 years: 261.74%
Number of Hedge Fund Holders: 47
argenx SE (NASDAQ:ARGX) is a biotechnology company based in the Netherlands that specializes in antibody-based therapies for severe autoimmune diseases. Its lead product is marketed as VYVGART and is approved in multiple countries for treating generalized myasthenia gravis and chronic inflammatory demyelinating polyneuropathy. The company’s growth story relies on the successful advancement of a pipeline of therapies targeting various autoimmune conditions.
The year 2024 was successful for argenx SE (NASDAQ:ARGX), with the company expanding its reach to over 10,000 patients globally across 3 approved indications. The company achieved several clinical milestones, including “empasiprubart” advancing to Phase III, following impressive preclinical data, and successfully moving “efgartigimod” into larger registrational studies in Sjogren’s disease and 3 subsets of myositis. The company’s commercial success was evident with product net sales reaching $737 million for Q4 and $2.2 billion for the full year, representing 29% QoQ growth and 98% growth YoY.
Looking ahead to 2025, argenx SE (NASDAQ:ARGX) will mark its first year as a profitable company, reflecting its commercial success and disciplined execution. The company is advancing an ambitious clinical program with 10 Phase III studies and 10 proof-of-concept studies across “efgartigimod”, “empasiprubart,” and ARGX-119. The anticipated launch of the prefilled syringe, which opens the door for self-administration in the US, is expected to be a key growth driver in 2025. ARGX maintains a strong financial position with a cash balance of $3.4 billion at year-end, further reinforcing its position as one of the most profitable stocks on our list.
12. Genmab A/S (NASDAQ:GMAB)
Net Profit in the latest fiscal year: $1.19 billion
Revenue CAGR last 5 years: 35.73%
Number of Hedge Fund Holders: 19
Genmab A/S (NASDAQ:GMAB) is a Danish company that develops advanced antibody-based medicines, mainly for cancer and serious diseases. It has helped create some approved treatments like DARZALEX for multiple myeloma, Kesimpta for multiple sclerosis, and Tivdak for cervical cancer, often working with large pharma partners. GMAB ranked third on our recent list of 8 Most Undervalued Healthcare Stocks to Buy According to Analysts.
Genmab A/S (NASDAQ:GMAB) delivered exceptionally strong financial performance in 2024, achieving 31% total revenue growth and 26% operating profit growth, driven by the success of their commercialized medicines, including EPKINLY and Tivdak. The company made significant strategic investments, including the $1.8 billion acquisition of ProfoundBio and a $500 million share buyback, while maintaining a strong cash position of nearly $3 billion. Its recurring revenues grew by 35%, representing 91% of total revenue in 2024, up from 88% in 2023, demonstrating an improving quality in their revenue profile.
Looking ahead to 2025, Genmab A/S (NASDAQ:GMAB) is focusing on executing its late-stage pipeline development, particularly with EPKINLY, Rina-S, and “acasunlimab”. The company anticipates three potentially significant pivotal readouts for EPKINLY by the end of 2026, including trials in frontline diffuse large B-cell lymphoma and second-line follicular lymphoma, which could support regulatory filings and drive meaningful revenue growth. For 2025, management projects revenue growth of 12% at the midpoint, with operating profit expected to grow by 16% to more than $1.1 billion, while maintaining disciplined investments in their priority programs. The optimistic guidance goes in line with the strong historical revenue growth momentum, which makes GMAB one of the most profitable stocks to buy now.
11. Coterra Energy Inc. (NYSE:CTRA)
Net Profit in the latest fiscal year: $1.25 billion
Revenue CAGR last 5 years: 49.40%
Number of Hedge Fund Holders: 48
Coterra Energy Inc. (NYSE:CTRA) is an energy company engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids. The company operates in three key regions: the Permian Basin in West Texas and Southeast New Mexico, the Marcellus Shale in Northeastern Pennsylvania, and the Anadarko Basin in Oklahoma.
Coterra Energy Inc. (NYSE:CTRA) delivered exceptional fourth quarter results, with production levels exceeding guidance for both oil and natural gas while maintaining capital expenditures near the low end of guidance. The company returned 89% of its free cash flow in 2024 through dividends and share repurchases, demonstrating strong shareholder returns. For 2025, after successfully closing the Franklin Mountain and Avant acquisitions in January, CTRA plans to run a consistent and highly capital-efficient program across its three operating regions, with expected capital spending between $2.1 billion and $2.4 billion.
The company has demonstrated significant operational improvements, particularly in the Marcellus, where it achieved a record low cost structure of $800 per foot, and in the Permian, where costs are projected to be $960 per foot, down 6% from 2024. Looking ahead, Coterra Energy Inc. (NYSE:CTRA) expects to prioritize deleveraging in 2025 with plans to repay $1 billion in term loans while maintaining its commitment to return 50% or more of annual free cash flow to shareholders through base dividends and share repurchases. CTRA’s updated three-year outlook positions it for industry-leading profitable growth, with projected oil volume growth of at least 5%, making it one of the most profitable growth stocks to consider.
10. AppLovin Corporation (NASDAQ:APP)
Net Profit in the latest fiscal year: $1.58 billion
Revenue CAGR last 5 years: 39.75%
Number of Hedge Fund Holders: 95
AppLovin Corporation (NASDAQ:APP) is a technology platform company that provides AI-driven advertising solutions to help businesses reach and monetize their software applications. Its main products include AppDiscovery for user acquisition and MAX for in-app monetization. APP ranked first on our recent list of 12 Best Multibagger Stocks to Buy in 2025.
AppLovin Corporation (NASDAQ:APP) delivered strong financial results in Q4 2024, with total revenue increasing 44% YoY to $1.37 billion and adjusted EBITDA growing 78% to $848 million, achieving a 62% margin. The company made a significant breakthrough by successfully capturing holiday shopping advertising dollars and expanding beyond gaming into e-commerce and other advertising categories. The company announced plans to sell its Apps business for $900 million, consisting of $500 million in cash and a minority equity stake in the combined private company, as it transitions to focus purely on its advertising platform.
Looking ahead, AppLovin Corporation (NASDAQ:APP) is positioning itself to serve the entire global advertising economy, with potential access to over 10 million businesses worldwide that could use its platform profitably. The company’s priority for 2025 is developing automated tools and self-service capabilities to enable scaling of new business onboarding, while maintaining its focus on operational excellence, as evidenced by its $3 million run rate adjusted EBITDA per employee in the advertising business. The platform’s success isn’t limited to direct-to-consumer brands, as early pilots have shown positive outcomes across various advertiser categories, suggesting significant growth potential as they expand their advertiser base. The company’s strong growth momentum, as evidenced by a whopping 39.75% last 5-year revenue CAGR, secured APP’s place on our list of the most profitable growth stocks to buy.
9. Shopify Inc. Class A Subordinate Voting Shares (NASDAQ:SHOP)
Net Profit in the latest fiscal year: $1.64 billion
Revenue CAGR last 5 years: 43.27%
Number of Hedge Fund Holders: 64
Shopify Inc. Class A Subordinate Voting Shares (NASDAQ:SHOP) is a multinational e-commerce company that provides a cloud-based platform on which businesses can create and manage online stores. The platform also offers complementary services like payment processing, marketing, shipping, and customer engagement tools. The company has managed to establish an almost complete e-commerce solution for businesses of all sizes and has managed to attract even giants like Mattel and Nestle. SHOP ranked fourth on our recent list of 10 Best Economic Recovery Stocks to Buy.
Shopify Inc. Class A Subordinate Voting Shares (NASDAQ:SHOP) delivered exceptional results in the latest reported Q4 2024, with 31% revenue growth and 22% free cash flow margins, achieving the “rule of 50” at a remarkable scale. The company’s annual performance was equally impressive, with 26% revenue growth and an 18% free cash flow margin for the year, while gross merchandise value (GMV) approached $300 billion and revenue reached $9 billion. Notably, SHOP’s operating income surpassed $1 billion for the year, four times higher than its previous peak of $269 million in 2021, demonstrating significant operational efficiency. The company also achieved significant milestones, including serving over 875 million consumers, crossing $1 trillion in cumulative GMV, and increasing Shop Pay adoption to 38% of gross payment volume. These metrics reflect SHOP’s potential as one of the most profitable stocks on our list.
Looking ahead to 2025, Shopify Inc. Class A Subordinate Voting Shares (NASDAQ:SHOP) is focusing on several key strategic initiatives, including simplification of its platform, deeper investment in AI capabilities, and continued international expansion, particularly in Europe and Japan. The company has demonstrated strong momentum in enterprise adoption, with major brands like Reebok, Champion, and FC Barcelona joining the platform. Importantly, SHOP maintains a strong financial position while keeping headcount stable, indicating improved operational efficiency. Management expressed confidence in the company’s position as a growth company operating with operational discipline, consistently delivering some of the strongest results in the software industry.
8. Robinhood Markets, Inc. (NASDAQ:HOOD)
Net Profit in the latest fiscal year: $1.68 billion
Revenue CAGR last 5 years: 81.28%
Number of Hedge Fund Holders: 79
Robinhood Markets, Inc. (NASDAQ:HOOD) offers a digital platform for commission-free trading of stocks, ETFs, options, and cryptocurrencies. Its suite of services is tailored towards retail investors and includes Robinhood Financial for brokerage, Robinhood Crypto for digital assets, and Robinhood Money for cash management, with recent expansions into retirement accounts, credit cards, and AI-driven financial advice.
Robinhood Markets, Inc. (NASDAQ:HOOD) achieved record-breaking performance in Q4 2024, surpassing $1 billion in quarterly revenue for the first time in company history, contributing to a full-year revenue of over $3 billion, representing a 58% increase from 2023. The company demonstrated strong growth across multiple metrics, including a 30% YoY increase in market share for both equities and options, record net deposits exceeding $50 billion, and an impressive 80% growth in Gold subscribers to 2.6 million users. The company’s Gold Card program has shown promising results with over 100,000 cardholders, and they plan to expand this significantly in the coming months.
Looking ahead to 2025, Robinhood Markets, Inc. (NASDAQ:HOOD) maintains strong momentum with January showing their second-highest month ever for net deposits and all-time high options volumes. The company’s new products are showing early success, with the Legend platform reaching $50 million in annualized trading revenue and index options reaching $15 million, demonstrating strong week-over-week growth rates. HOOD plans to continue its expansion through product innovation, market share gains, and entry into new markets, making it one of the most profitable stocks to invest in.
7. Zoom Communications Inc. (NASDAQ:ZM)
Net Profit in the latest fiscal year: $1.75 billion
Revenue CAGR last 5 years: 78.74%
Number of Hedge Fund Holders: 48
Zoom Communications Inc. (NASDAQ:ZM) is a provider of a cloud-native communications platform for video conferencing, team chat, phone services, and collaboration tools. Its notorious product suite includes Zoom Meetings, an AI-powered collaboration platform designed for modern work environments. ZM ranked fifth on our recent list of 10 Best Telehealth Stocks to Buy Now.
Zoom Communications Inc. (NASDAQ:ZM) had a strong Q4 2025, with total revenue growing 3% YoY to $1.184 billion, exceeding guidance expectations. The company demonstrated significant progress in AI adoption, with AI Companion usage growing 68% QoQ, while also securing major wins, including Amazon as a Zoom Workplace customer and its largest ever Contact Center deal with a Fortune 100 tech company for over 15,000 agents. Enterprise revenue grew 6% YoY and now comprises 60% of total revenue, while the online business showed signs of stability with the lowest fourth-quarter churn rate ever at 2.8%.
Looking ahead to fiscal 2026, Zoom Communications Inc. (NASDAQ:ZM) is focusing on three key strategic priorities: expanding AI capabilities, innovating within Zoom Workplace, and building upon momentum in new products like Contact Center and Workvivo. The company is launching new initiatives, including a Custom AI Companion add-on in April and enhanced AI capabilities for healthcare providers. Despite ongoing macro challenges, ZM’s financial outlook remains stable, with fiscal 2026 revenue expected to grow approximately 2.7% YoY to $4.785-$4.795 billion, while maintaining strong profitability, which secures its place on our list of the most profitable stocks to buy now.
6. Coinbase Global, Inc. (NASDAQ:COIN)
Net Profit in the latest fiscal year: $1.93 billion
Revenue CAGR last 5 years: 140.45%
Number of Hedge Fund Holders: 69
Coinbase Global, Inc. (NASDAQ:COIN) operates a cryptocurrency platform facilitating the trading, custody, staking, and transfer of digital assets. Serving customers in over 100 countries, COIN has become a significant player in the global crypto ecosystem.
Coinbase Global, Inc. (NASDAQ:COIN) delivered exceptional financial performance in 2024, with total revenue more than doubling to $6.6 billion and generating $3.3 billion in adjusted EBITDA, marking its second consecutive year of positive adjusted EBITDA. The company’s subscription and services revenue grew impressively by 64% YoY to $2.3 billion, driven by USDC stablecoin, staking, and Coinbase One services. Its international revenue share reached 19% in Q4, demonstrating successful expansion through improved payment rails and localization efforts. The company achieved an all-time high for both US spot and global derivatives market share in Q4, showcasing its growing market dominance.
Looking forward, Coinbase Global, Inc. (NASDAQ:COIN) is well-positioned to capitalize on new regulatory tailwinds, particularly with the election of the most pro-crypto Congress and President in history. The company’s strategy focuses on growing revenue with existing products, driving utility in new categories, and building foundations for the next decade of growth. It has set ambitious goals, including making USDC the #1 dollar stablecoin and expanding its international presence through its proven playbook. Besides explosive historical revenue growth and strong guidance ahead, at least 69 hedge funds express confidence in COIN by holding the stock at the end of Q4 2024, making it one of the most profitable growth stocks to consider.
5. Brookfield Asset Management Ltd. (NYSE:BAM)
Net Profit in the latest fiscal year: $2.36 billion
Revenue CAGR last 5 years: 172.44%
Number of Hedge Fund Holders: 21
Brookfield Asset Management Ltd. (NYSE:BAM) is a global alternative asset manager overseeing approximately $1 trillion in assets across sectors including renewable energy, infrastructure, real estate, private equity, and credit. The company generates revenue by offering financial products such as pension plans to institutional clients. It is one of the most profitable stocks to invest in.
Brookfield Asset Management Ltd. (NYSE:BAM) had a strong 2024, with over $135 billion in capital raised, including a record $29 billion of organic fundraising in Q4, $48 billion deployed, and $30 billion of investments monetized. The company’s fee-bearing capital grew by 18% annually to $539 billion, generating $2.5 billion in fee-related earnings and $2.4 billion in distributable earnings for the year. The credit group emerged as its largest business with nearly $250 billion of fee-bearing capital, contributing 60% of the year’s organic capital raise.
Looking ahead, Brookfield Asset Management Ltd. (NYSE:BAM) is well-positioned to capitalize on major secular trends, including the alternative asset industry’s expected doubling in size, ongoing consolidation of managers, and strategic alignment with key themes like digitalization, clean energy, and private credit. The company expects its latest flagship rounds to be over 15% larger than previous vintages, with strong momentum across complementary strategies and new products. In recognition of its strong performance and growth prospects, we include BAM on our list of the most profitable stocks to buy now.
4. Diamondback Energy, Inc. (NASDAQ:FANG)
Net Profit in the latest fiscal year: $3.56 billion
Revenue CAGR last 5 years: 34.65%
Number of Hedge Fund Holders: 53
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company focusing on the acquisition, development, and production of unconventional, onshore oil and natural gas reserves in the Permian Basin of West Texas and New Mexico. The company’s operations primarily involve horizontal drilling and midstream activities such as gathering, compression, and water handling.
Diamondback Energy, Inc. (NASDAQ:FANG) demonstrated strong capital efficiency in its 2025 plan, with the ability to produce the same free cash flow at $67 per barrel compared to $76 last year, showing improved operational performance. The company is executing a significant DUC (Drilled but Uncompleted wells) drawdown plan, which is expected to generate approximately $200 million in capital savings for the year. Additionally, they have committed to at least a 50% return of free cash flow to shareholders while maintaining flexibility to increase this based on market conditions.
Diamondback Energy, Inc. (NASDAQ:FANG) is actively pursuing $1.5 billion in non-core asset sales, primarily focusing on equity method investments and midstream assets, without selling operated acreage. Following the Double Eagle acquisition, which represents one of the last meaningful opportunities in the core Midland Basin, FANG is shifting focus towards share repurchases and reducing enterprise value. At $70 oil, the company projects generating $20 per share in free cash flow for 2025, representing a 12.5%-13% yield at current prices. Besides attractive valuations, FANG generated more than $3.5 billion in net profit in its latest fiscal year, making it one of the most profitable growth stocks to consider.
3. Uber Technologies, Inc. (NYSE:UBER)
Net Profit in the latest fiscal year: $9.85 billion
Revenue CAGR last 5 years: 31.99%
Number of Hedge Fund Holders: 166
Uber Technologies, Inc. (NYSE:UBER) operates a global platform offering services across three main segments: Mobility (ride-hailing), Delivery (food and goods), and Freight (logistics). It is most notorious for its Mobility segment, which connects users with drivers for various transportation options, including cars, auto rickshaws, motorbikes, minibuses, or taxis.
Uber Technologies, Inc. (NYSE:UBER) demonstrated strong performance in Q4 2024, with gross bookings growth exceeding expectations and beating guidance on a constant currency basis. The company achieved significant milestones in its Uber One membership program, adding 5 million members in the quarter to reach 30 million total members, representing a 60% YoY increase. The company exceeded its commitments across all three components of its 3-year outlook framework, with gross bookings growing 21%, adjusted EBITDA growing 60% YoY, and annual free cash flow reaching 106% of EBITDA.
Looking ahead, Uber Technologies, Inc. (NYSE:UBER) expects continued strong growth in Q1 2025 with 17% to 21% constant currency gross bookings growth despite FX headwinds. The company is also positioning itself strategically in the autonomous vehicle (AV) space, viewing itself as an indispensable go-to-market partner for AV players. In the delivery segment, the company has shown impressive growth with over 1 million active merchants, up 16% YoY, and continues to focus on selection, price, and quality improvements. The management expressed increased confidence in meeting its three-year guidance of mid-to-high teens top-line growth and bottom-line growth in the 30% to 40% range. With such explosive guidance ahead, UBER is undoubtedly one of the most profitable growth stocks to buy now.
2. PDD Holdings Inc. (NASDAQ:PDD)
Net Profit in the latest fiscal year: $15.36 billion
Revenue CAGR last 5 years: 67.31%
Number of Hedge Fund Holders: 85
PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group that owns and operates a portfolio of businesses, including the Chinese e-commerce platform Pinduoduo and the international online marketplace Temu. The latter platform was launched in September 2022 and has rapidly expanded into markets such as the United States, offering a wide range of affordable products. PDD ranked first on our recent list of 10 Best Chinese Stocks to Buy According to Billionaires.
PDD Holdings Inc. (NASDAQ:PDD) delivered stable financial results in Q4 2024, with total revenues increasing 24% YoY, while full-year 2024 revenue grew 59%. The company’s non-GAAP operating profit reached RMB 28 billion for the quarter, compared to RMB 24.6 billion in the same quarter of 2023, though the operating profit margin decreased from 28% to 24%. However, management acknowledged that external uncertainties, intense competition, and increased investments in merchant support and platform ecosystem development may impact short-term revenue growth and create fluctuations in profitability. Despite short-term headwinds, PDD maintains its explosive growth momentum, which secures its second place on our list of the most profitable stocks to consider.
PDD Holdings Inc. (NASDAQ:PDD) has demonstrated a strong commitment to its high-quality development strategy through several major initiatives, including a CNY 10 billion fee reduction program, logistics support measures for remote regions, and high-quality merchant support programs. These initiatives have shown positive results, with the fee reduction program enabling over 10 million merchants to enhance operational efficiency and reduce costs, while logistics support measures drove double-digit order volume growth and extended free shipping to nearly 100 million consumers in remote regions. Looking ahead to 2025, PDD will continue to prioritize investments in platform ecosystem development, focusing on strengthening merchant rights protection, stepping up support for high-quality merchants, and broadening quality supply on the platforms.
1. NVIDIA Corporation (NASDAQ:NVDA)
Net Profit in the latest fiscal year: $74.27 billion
Revenue CAGR last 5 years: 70.88%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is renowned for its edge in GPUs and AI platforms. Its primary revenue stems from state-of-the-art data center GPUs like the H100 and Blackwell chips, essential for AI workloads. The company also develops the CUDA software platform, which enables developers to leverage GPU acceleration across various applications. NVDA has become a pivotal player in AI infrastructure, with its GPUs powering major AI models and platforms, and thus ranked first on our recent list of 11 Best Innovative Stocks to Buy According to Analysts.
NVIDIA Corporation (NASDAQ:NVDA) reported record financial results for Q4 and fiscal year 2025, with quarterly revenue of $39.3 billion, up 78% YoY, and full year revenue of $130.5 billion, up 114%. The company’s Data Center segment was the primary driver, more than doubling to $115.2 billion for the full year. Demand for the AI chips and systems remains extremely strong as customers race to build out AI infrastructure. NVDA successfully ramped production of its new Blackwell architecture, delivering $11 billion in Blackwell revenue in Q4 despite some initial delays.
Looking ahead, NVIDIA Corporation (NASDAQ:NVDA) expects continued strong growth in fiscal 2026, forecasting Q1 revenue of $43 billion. The company sees multiple drivers of AI compute demand, including pre-training of larger multimodal models, post-training techniques like reinforcement learning, and inference scaling for reasoning AI that can require 100x more compute per task. The company is positioning itself to address the full spectrum of AI workloads from cloud to enterprise with its Blackwell platform. While gross margins are expected to dip initially with the Blackwell ramp, management expects them to recover to the mid-70% range later in the fiscal year as manufacturing efficiencies improve.
Overall, NVDA ranks first on our list of the most profitable growth stocks to buy now. 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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