In this article, we will discuss the 14 Best Long Term Growth Stocks to Buy Now.
Morningstar highlighted that, as of Sept. 30, 2025, the US equity market was trading at 3% premium over its fair value estimates. With the market trading slightly higher than its fair value and ~40% of market capitalization concentrated in just 10 mega-caps, whose valuations remain largely leveraged to the AI build-out, the firm opines that there is no margin for error in deviating from its strong AI forecasts.
Headwinds and Tailwinds for the US Markets
Morningstar highlighted that the favourable momentum from AI buildout, as well as expected monetary easing, is just barely mitigating the negative macroeconomic headwinds and inflationary concerns. On the positive side, AI spending has been supporting in maintaining growth, which might have faltered otherwise.
Furthermore, the US Fed is expected to cut rates twice by the end of the year, and long-term rates are expected to decline. The 10-year Treasury is expected to average 3.9% in 2026. That being said, over the upcoming 4 quarters, slowing consumption growth, sluggish new homebuilding, and fading stimulus measures would be impacting the economy, believes Morningstar.
Amidst such trends, let us now have a look at the 14 Best Long-Term Growth Stocks to Buy Now.
Our Methodology
To list the 14 Best Long Term Growth Stocks to Buy Now, we sifted through several online rankings to shortlist the stocks that have healthy EPS growth over the past 5 years and healthy EPS growth projections for the upcoming 5 years. Next, we chose the ones popular among hedge funds, as of Q2 2025. The stocks are arranged in ascending order of their hedge fund sentiments.
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).
14 Best Long Term Growth Stocks to Buy Now
14. The Descartes Systems Group Inc. (NASDAQ:DSGX)
5-year EPS Growth: ~27.6%
Projected 5-year EPS Growth: ~22.4%
Number of Hedge Fund Holders: 21
The Descartes Systems Group Inc. (NASDAQ:DSGX) is one of the Best Long Term Growth Stocks to Buy Now. On October 2, TD Securities resumed coverage of the company’s stock with a “Buy” rating and price objective of $121, down from the previous target of $135. The firm opines that The Descartes Systems Group Inc. (NASDAQ:DSGX) remains well-placed when the macro backdrop improves and customers start to invest in tools to navigate continued trade volatility. As per the analyst, the recent pullback offers an opportunity to make an investment in a consistent performer that is near its trough valuations. Notably, over the past month, the company’s stock has declined by ~11.6%.
Elsewhere, in Q2 2026, The Descartes Systems Group Inc. (NASDAQ:DSGX)’s revenues came in at $179.8 million, reflecting a rise of 10% from $163.4 million in Q2 2025 and 7% compared to Q1 2026. The Global Logistics Network of technology and connected parties is being relied on by shippers, carriers, and logistics services providers. Conestoga Capital Advisors, an asset management company, released its Q2 2025 investor letter. Here is what the fund said:
“Within Technology, The Descartes Systems Group Inc. (NASDAQ:DSGX) and Simulations Plus, Inc. (SLP) were the largest detractors from relative return. DSGX, which provides software services to assist in logistics and global shipping invoice management, fell after announcing a reduction in force as they plan for the impact of global trade uncertainty.”
The Descartes Systems Group Inc. (NASDAQ:DSGX) provides global logistics technology solutions worldwide.
13. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
5-year EPS Growth: ~69.4%
Projected 5-year EPS Growth: ~24.4%
Number of Hedge Fund Holders: 41
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is one of the Best Long Term Growth Stocks to Buy Now. On October 3, Citi analyst Kelsey Chia reiterated the bullish stance on the company’s stock, giving a “Buy” rating. The analyst lifted the price objective from $825 to $1,100. The analyst’s rating is backed by numerous positive indicators. As per the analyst, Monolithic Power Systems, Inc. (NASDAQ:MPWR) is anticipated to report healthy results for Q3 2025, thanks to the positive trends in the Enterprise Data, Storage, and Computing markets.
Furthermore, Monolithic Power Systems, Inc. (NASDAQ:MPWR)’s AI power business continues to expand beyond its initial partnerships, with new collaborations expected to contribute to growth from H2 2025. Apart from the AI sector, Monolithic Power Systems, Inc. (NASDAQ:MPWR) continues to see momentum in its automotive business, which is expected to continue through 2026, added the firm’s analyst. It remains well-placed to benefit from the recovery of the analog market as well as the higher demand for AI data center power solutions.
Baron Funds released its Q2 2025 investor letter. Here is what the fund said:
“Very briefly on the other, smaller adds to existing investments during the second quarter. Fabless analog and power semiconductor company Monolithic Power Systems, Inc. – we like Monolithic Power Systems, Inc.’s (NASDAQ:MPWR) consistent above industry growth and its attractive end market exposure and have taken advantage of short-term volatility to add to our position.”
12. Super Micro Computer, Inc. (NASDAQ:SMCI)
5-year EPS Growth: ~60%
Projected 5-year EPS Growth: ~27.8%
Number of Hedge Fund Holders: 48
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the Best Long Term Growth Stocks to Buy Now. On September 15, Bernstein analyst Mark Newman gave a “Market Perform” rating and a $46 price target on the company’s stock. As per the analyst, the company is the purest way to play AI servers in its coverage. That being said, a recent run of top and bottom-line misses as well as accounting issues kept the company on the sidelines.
As one of the strong growth stories in the AI servers, Super Micro Computer, Inc. (NASDAQ:SMCI) delivered healthy growth over the recent quarters. However, the analyst remains concerned about the company’s ability to sustain its market share. Notably, Super Micro Computer, Inc. (NASDAQ:SMCI) made strong progress in FY 2025 by growing its AI solution leadership in Neoclouds, CSPs, Enterprises, and Sovereign entities, driving its 47% annual growth.
Super Micro Computer, Inc. (NASDAQ:SMCI) stated that, with help from its expanding global operations, which support in mitigating tariffs and regional costs, along with an increasing enterprise customer base, AI product innovations, and strong DCBBS-powered total solutions, it remains on track to grow more large-scale datacenter customers from four in FY 2025 to six to eight in FY 2026.
11. Insulet Corporation (NASDAQ:PODD)
5-year EPS Growth: ~62.9%
Projected 5-year EPS Growth: ~66.3%
Number of Hedge Fund Holders: 53
Insulet Corporation (NASDAQ:PODD) is one of the Best Long Term Growth Stocks to Buy Now. On September 17, Truist Securities analyst Richard Newitter reiterated a “Buy” rating on the company’s stock with the price objective of $365.00. Insulet Corporation (NASDAQ:PODD)’s management reiterated the robust worldwide operating momentum, expecting to surpass its Q3 2025 revenue growth guidance, supported by the robust new customer starts throughout both the US and international markets. Notably, for Q3 2025, the company expects revenue growth of 22%-25%.
Insulet Corporation (NASDAQ:PODD)’s results in Q2 2025 demonstrate its attractive position as the differentiated durable-growth company amidst a large underpenetrated market. The company saw revenue of $649.1 million, reflecting a rise of 32.9%, or 31.3% in constant currency, surpassing the high end of its guidance range of 26.0% in constant currency. Insulet Corporation (NASDAQ:PODD)’s total Omnipod revenue came in at $639.0 million, up by 33.0%, or 31.4% in constant currency. The company’s US revenue rose 28.7%, above the high end of its guidance range, backed by the strong performance from its commercial team, as there was a healthy demand and momentum for Omnipod 5, which continues to drive growth in the customer base.
ClearBridge Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Our health care exposure was a particular standout in a quarter that saw the sector overall struggle due to tariff fears and challenges in the Medicare Advantage market. Insulet Corporation (NASDAQ:PODD), a developer of insulin pumps for the treatment of diabetes, which was already seeing robust margin growth, is benefiting from Omnipod sales among the type 2 diabetes population, a market it received FDA approval for last summer.”
10. DexCom, Inc. (NASDAQ:DXCM)
5-year EPS Growth: ~21.5%
Projected 5-year EPS Growth: ~25.5%
Number of Hedge Fund Holders: 60
DexCom, Inc. (NASDAQ:DXCM) is one of the Best Long Term Growth Stocks to Buy Now. On September 19, William Blair analyst Brandon Vazquez maintained their bullish stance on the company’s stock, giving a “Buy” rating. The analyst’s rating is backed by a combination of factors demonstrating its growth potential despite current concerns. The analyst noted that the MAUDE database, which raised some quality issues, is noisy and not definitive, as it allows anyone to file reports that are not always verified. The analyst highlighted the importance of analyzing such filings amidst strong growth in DexCom, Inc. (NASDAQ:DXCM)’s user base, providing a clearer picture of the situation.
Also, the analyst emphasized that the recent trends in MAUDE filings remain in line with DexCom, Inc. (NASDAQ:DXCM)’s explanations, demonstrating that the company addressed the issues effectively. During Q2 2025, the company delivered healthy revenue results, presented compelling clinical data at ADA, and further advocated for expanded coverage in critical growth markets. In H2 2025, the company remains focused on continuing its commercial momentum while, at the same time, advancing its product portfolio amidst the highly anticipated launch of the Dexcom G7 15 Day System.
Sands Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“DexCom, Inc. (NASDAQ:DXCM) was a significant detractor from absolute and relative results in 2024, which we attribute to a combination of poor execution and fears of disruption by GLP-1 drugs.
The business’ second-quarter 2024 results were surprisingly weak, as a disruptive sales force reorganization and a rapid shift of patients to lower priced channels pressured volumes, revenues, and earnings. This poor execution worsened existential concerns about Dexcom’s addressable market, with GLP-1s viewed as potentially reducing the number of diabetics globally.
Third-quarter results demonstrated operational improvement. The chief commercial officer responsible for the disruptive reorganization was removed, Dexcom reported a record quarter for new patient additions, and volume growth exceeded 20 percent year-over-year. Additionally, Dexcom submitted its 15-day device to the U.S. Food and Drug Administration for approval six months earlier than expected…” (Click here to read the full text)
9. Autodesk, Inc. (NASDAQ:ADSK)
5-year EPS Growth: ~24.1%
Projected 5-year EPS Growth: ~22.9%
Number of Hedge Fund Holders: 73
Autodesk, Inc. (NASDAQ:ADSK) is one of the Best Long Term Growth Stocks to Buy Now. On October 1, HSBC upgraded Autodesk, Inc. (NASDAQ:ADSK)’s stock to “Buy” from “Hold,” increasing the price objective to $388 from $343, noting the robust AI adoption as well as favorable capital expenditure trends. The firm highlighted that it switched its valuation methodology to target PEG (from target PE), considering the increasing signs that the company remains well-positioned to monetize AI and is likely to see margin expansion.
The firm stated that Autodesk, Inc. (NASDAQ:ADSK)’s integration of AI throughout its core tools remains a key driver. Furthermore, the company’s large installed base as well as repository of user-generated designs offer a deep and wide data moat to train the AI offering, added HSBC. Beyond software, the macro trends remain supportive. Overall, the firm opines that Autodesk, Inc. (NASDAQ:ADSK)’s stock will benefit from the AI exposure. For FY 2026, the company expects billings in the range of $7,355 million – $7,445 million, and revenues of between $7,025 million – $7,075 million.
8. Fair Isaac Corporation (NYSE:FICO)
5-year EPS Growth: ~27%
Projected 5-year EPS Growth: ~20%
Number of Hedge Fund Holders: 74
Fair Isaac Corporation (NYSE:FICO) is one of the Best Long Term Growth Stocks to Buy Now. On October 2, Barclays lifted the price target on the company’s stock to $2,400 from $2,000, while keeping an “Overweight” rating, as reported by The Fly. As per the analyst, Fair Isaac Corporation (NYSE:FICO)’s new mortgage direct license program remains a clear positive. Fair Isaac Corporation (NYSE:FICO) added that, with the roll-out of FICO® Mortgage Direct License Program, tri-merge resellers have the option to calculate as well as distribute FICO Scores directly to their customers. This would eliminate reliance on the 3 nationwide credit bureaus.
This shift is expected to fuel price transparency and immediate cost savings to mortgage lenders, mortgage brokers, and other industry participants. In Q3 2025, Fair Isaac Corporation (NYSE:FICO)’s software revenues came in at $212.1 million as compared to $206.4 million in the prior-year period, reflecting an increase of 3%. This was mainly because of increased Software as a Service revenue.
Brown Advisory, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“We initiated positions in DraftKings (DKNG) and Fair Isaac Corporation (NYSE:FICO) during the quarter. Fair Isaac Corporation (FICO) is one of the leading providers of credit scoring solutions in the United States, with its FICO score serving as the industry benchmark for consumer credit risk assessment among lenders. Despite recent headwinds from higher interest rates suppressing mortgage originations, we believe FICO remains indispensable within the mortgage ecosystem. The company is well-positioned to benefit from a cyclical recovery in home purchases and to drive revenue growth through its critical role in credit risk management. With its dominant market share and strong reputation for innovation, FICO is poised to deliver sustained growth as the need for reliable credit assessment remains essential.
Fair Isaac Corporation (FICO) was added to the portfolio during the quarter. As a leading provider of credit scores in the U.S., its FICO score is the standard metric used by most lenders to evaluate consumer credit risk. While the stock finished essentially flat for the quarter, concerns about rising mortgage origination costs, raised by the head of the FHFA, led to an intra-quarter decline of nearly 30%.”
7. ASML Holding N.V. (NASDAQ:ASML)
5-year EPS Growth: ~28.3%
Projected 5-year EPS Growth: ~22%
Number of Hedge Fund Holders: 78
ASML Holding N.V. (NASDAQ:ASML) is one of the Best Long Term Growth Stocks to Buy Now. On October 1, UBS lifted the price objective on the company’s stock to EUR940.00 from EUR750.00, while maintaining a “Buy” rating. The company’s stock has seen a strong run-up over the past few weeks, with investors showing increased appetite for both ASML Holding N.V. (NASDAQ:ASML) and broader technology stocks. Notably, over the past month, the company’s stock rose by ~30%. UBS anticipates a favorable news flow for the company over the upcoming 6-12 months, primarily related to high numerical aperture (high NA) opportunities, which it believes will support further share price appreciation.
ASML Holding N.V. (NASDAQ:ASML)’s Q2 2025 total net sales were €7.7 billion, which came in at the top end of its guidance. The gross margin stood at 53.7%, above guidance, mainly supported by the higher upgrade business and one-offs that resulted in lower costs. Looking at 2026, ASML Holding N.V. (NASDAQ:ASML) believes that the fundamentals of its AI customers are strong. Artisan Partners, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“ASML Holding N.V. (NASDAQ:ASML) is a Dutch manufacturer of advanced semiconductor equipment, with a near-monopoly in the extreme ultraviolet (EUV) lithography market. Every chip on every node on the planet is made with an ASML lithography machine. The world is consuming ever more chips, and the leading edge is moving to more complex architectures, driving capital intensity higher for manufacturing. ASML sells into this increasing demand with machines that allow innovation at the leading edge and ever-increasing efficiency in trailing nodes. EUV lithography systems are the only ones capable of producing advanced chips, with the smallest nanometer values. ASML’s high-NA EUV(high numerical aperture EUV) machine can cost over $400 million per unit and already has a decade-long roadmap with customers. With significant net cash on the balance sheet and a large backlog for arguably the most important machine in the world, we have little doubt ASML will exist on the other side of this trade war. When we took our position in April, ASML’s valuation was the cheapest in years, pricing in a slowdown from a recession and other turbulence.”
6. Block, Inc. (NYSE:XYZ)
5-year EPS Growth: ~48.7%
Projected 5-year EPS Growth: ~31%
Number of Hedge Fund Holders: 79
Block, Inc. (NYSE:XYZ) is one of the Best Long Term Growth Stocks to Buy Now. On October 3, Morgan Stanley analyst James Faucette maintained their neutral stance on the company’s stock, giving a “Hold” rating. The analyst’s rating is backed by a combination of factors affecting Block, Inc. (NYSE:XYZ)’s Cash App business. There is optimism regarding the potential for gross profit acceleration in H2 of the year, mainly with the expansion of Borrow and Cash Card spending. However, the overall investor sentiment is cautious. This caution is because of the uncertainties in the macroeconomic environment.
There is also a renewed focus on profitability over growth, with investors carefully monitoring loss rates and operational expenses. Amidst the challenges, there is some confidence in Block, Inc. (NYSE:XYZ)’s ability to manage loss rates, added the analyst. In Q2 2025, Cash App gross profit rose 16% YoY, thanks to the growth throughout Cash App Borrow, Cash App Card, and BNPL. In Q2 2025, investments in the lending products continued, including growing Borrow, considering the healthy unit economics and returns.
Sands Capital, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Block, Inc. (NYSE:XYZ) is a digital financial services pioneer and enabler of financial inclusion. The business disappointed investors with lighter-than-expected first-quarter 2025 guidance. We are reassessing Block’s fit with our criteria following significant poor execution in Square, which allowed competitors to establish positions with point-of-sale. While Block has since improved its product and go-to-market strategy, it’s unclear if these changes will regain momentum or if they arrived too late. Cash App remains stronger but faces challenges transitioning from peer-to-peer to full-service banking. Product cadence has slowed, possibly due to execution, regulatory focus, or business maturity. While Block has restructured operations and has significant potential growth drivers (e.g., AfterPay on the Cash Card, Cash App Borrow), we’re carefully evaluating whether the business is at a turning point.”
5. ServiceNow, Inc. (NYSE:NOW)
5-year EPS Growth: ~17.5%
Projected 5-year EPS Growth: ~32.6%
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the Best Long Term Growth Stocks to Buy Now. On October 3, Stifel maintained a “Buy” rating on the company’s stock with the price objective of $1,200. The research firm highlighted solid Q4 Enterprise and Commercial pipelines, which are expected to support modest upside to fourth-quarter guidance. The firm also reported a QoQ improvement in ServiceNow, Inc. (NYSE:NOW)’s Enterprise and Commercial selling environment, mainly driven by the core workflows with additional strength from Pro+, Workflow Data Fabric, and RaptorDB offerings.
As of June 30, 2025, ServiceNow, Inc. (NYSE:NOW)’s current remaining performance obligations (cRPO) amounted to $10.92 billion, demonstrating 24.5% YoY growth and 21.5% in constant currency. Furthermore, Now Assist has been surpassing net new ACV expectations, thanks to an increase in both deal volume and size QoQ, putting ServiceNow, Inc. (NYSE:NOW) firmly on track to hit its $1 billion ACV target by 2026.
ClearBridge Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“We did see good results from AI-ecosystem holdings in IT and industrials. Within IT, ServiceNow, Inc. (NYSE:NOW) remains a leader among its software peers in the monetization of generative AI, with a target of $1 billion in annual contract value from AI-related products by 2026.”
4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
5-year EPS Growth: ~25.5%
Projected 5-year EPS Growth: ~19.4%
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Long Term Growth Stocks to Buy Now. On September 30, Morgan Stanley raised the PT on the company’s stock to NT$1,588 from NT$1,388, reflecting healthy AI demand, stable foreign exchange, and pricing power. The firm further added that AI semi demand has been demonstrating upside, showcasing growth in both AI application-specific integrated circuits and GPUs into 2026. On advanced processes, the firm noted that customers have been embracing TSMC’s 2nm, A16, and A14 technologies in a bid to achieve better energy efficiency.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s business in Q2 2025 was helped by continued strong AI and HPC-related demand. On a consolidated basis, revenue for August 2025 came in at ~NT$335.77 billion, reflecting a rise of 3.9% from July 2025 and 33.8% on a YoY basis. Advanced technologies, defined as 7-nanometer and more advanced technologies, made up 74% of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s total wafer revenue in Q2 2025.
Brown Advisory, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM): Manufactures, distributes and tests integrated circuits, silicon wafers, diodes and related semiconductor components. Taiwan Semiconductor Manufacturing benefits from its leadership in leading node manufacturing which allows it to take market share and benefit from the strong demand environment for high-performance computing and AI infrastructure.”
3. Alphabet Inc. (NASDAQ:GOOGL)
5-year EPS Growth: ~32.7%
Projected 5-year EPS Growth: ~17.8%
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the Best Long Term Growth Stocks to Buy Now. On October 5, Jefferies lifted the price target on the company’s stock to $285 from $230, while keeping a “Buy” rating, as reported by The Fly. Notably, the firm expressed confidence in Alphabet Inc. (NASDAQ:GOOGL)’s AI positioning, highlighting that while Gemini is not currently the AI chatbot winner, the platform remains strongly positioned to be one of the leading AI answer engines. Furthermore, the firm noted the company’s potential to create a unified chat interface possessing clear intent, merging AI overviews, AI mode, and search capabilities with intelligent self-routing.
This will provide Google ownership of the high-value funnel guiding customers from the discovery to purchase decisions. The analyst also highlighted Circle to Search and Google Lens as features that tend to expand the search experience with multi-modality throughout browsers such as Chrome and Safari, helping to potentially transform Google search into the ultimate decision engine. In Q2 2025, Alphabet Inc. (NASDAQ:GOOGL) highlighted that Google Services revenues rose 12% to $82.5 billion, demonstrating healthy performance across Google Search & other, Google subscriptions, platforms, and devices, and YouTube ads.
SaltLight Capital, an investment management company, has released its Q2 2025 investor letter. Here is what the fund said:
“To illustrate our approach to navigating these uncertainties, we turn to our recent investment in Alphabet Inc. (NASDAQ:GOOGL), which exemplifies balancing innovation risks with established strengths.
Innovator’s Dilemma: Google is grappling with an Innovator’s Dilemma as it protects its $200 billion search business from a significant technological shift. To put it plainly, Google Search’s primary purpose is to act as a ‘match-maker’, guiding users to the best source for their query on the open web. However, artificial intelligence is changing this role, with AI handling much of the searching, synthesis, and answering for the user, reducing the need to visit destination websites to gather information. A natural tension is emerging.
Humans naturally gravitate towards the path of least resistance, increasingly depending on AI to undertake cognitive tasks for them. This development poses challenges for content providers and for Google itself, which derives advertising revenue from these interactions…” (Click here to read the full text)
2. NVIDIA Corporation (NASDAQ:NVDA)
5-year EPS Growth: ~91.4%
Projected 5-year EPS Growth: ~29.3%
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Long Term Growth Stocks to Buy Now. On October 3, Cantor Fitzgerald reiterated its “Overweight” rating with the price objective of $240.00. As per the analyst, the company has been solidifying its position as the de facto AI infrastructure company, which is quarterbacking the strong AI industry buildout that is in its infancy. Furthermore, the firm identified NVIDIA Corporation (NASDAQ:NVDA) as its top pick among the AI-levered stocks.
In Q2 2026, the company reported revenue of $46.7 billion, reflecting a rise of 6% from the previous quarter and 56% YoY. The company’s Blackwell Data Center revenue rose 17% sequentially. Earlier, in September, NVIDIA Corporation (NASDAQ:NVDA) and Intel Corporation (NASDAQ:INTC) announced a collaboration to jointly develop multiple generations of custom data center and PC products, which accelerate applications and workloads throughout hyperscale, enterprise, and consumer markets.
Columbia Threadneedle Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Shares of core holding NVIDIA Corporation (NASDAQ:NVDA) surged during the quarter, after the company reported strong quarterly results driven by very strong demand for the company’s next-generation Blackwell architecture. The new Blackwell chips deliver compelling performance improvements, with up to 30x faster inference capabilities as compared with prior generations and, importantly, are much more energy efficient. The company also proved resilient against a backdrop of increasing geopolitical tension, as sovereign deals announced in parts of the world such as the Middle East and Taiwan helped to offset headwinds that resulted from U.S. export restrictions on China sales.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
5-year EPS Growth: ~38.1%
Projected 5-year EPS Growth: ~29.2%
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best Long Term Growth Stocks to Buy Now. On October 3, Goldman Sachs lifted the price objective on the company’s stock to $275.00 from $240.00, while maintaining a “Buy” rating. The firm identified Amazon.com, Inc. (NASDAQ:AMZN) as the preferred name among the large-cap coverage, noting the potential growth pathways for its cloud computing and advertising segments. The analysis by the firm considered numerous factors aiding AWS growth, such as the current competitive environment, revenue backlog, AI services contribution, ease of capacity constraints, custom silicon positioning, and capital expenditure return profiles.
Elsewhere, the National Basketball Association (NBA) and AWS announced a multi-year partnership to power the league’s next generation of innovation, as AWS would be the Official Cloud and Cloud AI Partner of the NBA and its affiliate leagues, including WNBA, NBA G League, Basketball Africa League, and NBA Take-Two Media. Also, Murex and Amazon.com, Inc. (NASDAQ:AMZN)’s AWS announced a multi-year strategic collaboration agreement, expanding the long partnership.
Mairs & Power, an investment advisor, released its Q2 2025 investor letter. Here is what the fund said:
“The Fund also started a new position in Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, where the company is well positioned to continue capturing market share in retail while also growing its market leading cloud business. The Fund took advantage of weakness in the stock during April to start the position as tariff news and a precipitous market decline provided an opportunity to build a position.”
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now.
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