10 Best Growth Stocks for the Next 5 Years

8. Monolithic Power Systems (NASDAQ:MPWR)

Average Upside Potential: 22%

EPS Growth Past 5 Years: 29.77%

Number of Hedge Fund Holders: 69

Rosenblatt analyst Kevin Cassidy upgraded Monolithic Power Systems to Buy from Neutral on October 30 and raised his price target to $1,700 from $1,575, pointing to a third quarter that beat expectations and lifted guidance in enterprise data and communications. The quarter gave him plenty to work with. Revenue passed $1 billion for the first time, and enterprise data sales grew 164.6% as customers building AI servers bought more of the company’s power chips.

Monolithic Power Systems designs the power chips that sit beside the processors in those servers. Management said capacity is expanding toward $8 billion of annual revenue by the second half of 2027, and a first large data converter design win is set to ramp that year. Consumer sales fell, a reminder that the growth is concentrated in data-center markets, and the company also bought back stock during the quarter.

Investors have started to ask how much of the profit jump reflects lasting pricing power. That margin question is the subject of our look at Monolithic Power’s margin jump and why it matters for the next downturn.

7. Arista Networks (NYSE:ANET)

Average Upside Potential: 26%

EPS Growth Past 5 Years: 40.70%

Number of Hedge Fund Holders: 91

Piper Sandler analyst James Fish raised his price target on Arista Networks to $261 from $240 on November 4 and kept an Overweight rating, calling the stock a top pick. He pointed to further acceleration in the third quarter, strong profitability and an initial 2027 view that supports the durability of growth.

The results gave him support. Revenue grew 58.5% to $3.66 billion, the fastest pace since the company’s IPO, and the non-GAAP operating margin reached 49.1%. Arista Networks sells client-to-cloud networking for AI, data center, campus and routing. The shares rose the day after the report. Investors also like that management’s fourth-quarter guidance points to more growth, not a pause.

The risks are specific and tied to how the company sources and sells its products. Arista depends on a predominant merchant silicon vendor for key components, and a handful of large customers account for much of its sales. Either dependency could limit how fast the company can grow, and investors weigh both against the strength of demand. You might also be interested in reading our piece on what Arista’s cash pile and lack of debt are worth.

6. Taiwan Semiconductor Manufacturing (NYSE:TSM)

Average Upside Potential: 33%

EPS Growth Past 5 Years: 25.67%

Number of Hedge Fund Holders: 249

Bernstein analyst Mark Li lifted his price target on Taiwan Semiconductor Manufacturing to $600 from $554 on November 4 and kept an Outperform rating. His reasoning was that demand from Amazon’s and Google’s in-house custom chips is arriving faster than expected, which pulls more of the AI market toward the contract chipmaker’s most advanced factories. He applied a forward earnings multiple to estimates running from late 2027 into 2028, so the call is a bet on durability.

Results show where that demand is landing. Taiwan Semiconductor Manufacturing builds chips designed by other companies, and high-performance computing made up 68% of its third-quarter net revenue, while October revenue jumped 59.7% from a year earlier. Investors like that the mix is tilting toward leading-edge nodes, which carry the highest prices. The company spent US$13.84 billion on capital expenditures in the quarter to build capacity for those chips.

For more on the cost side of that story, see our look at TSMC’s record AI demand and its growing cost. Whether 2-nanometer production, which is already contributing to wafer revenue, can extend the pace into 2027 is the next question for investors.

5. Amphenol (NYSE:APH)

Average Upside Potential: 34%

EPS Growth Past 5 Years: 27.86%

Number of Hedge Fund Holders: 112

Investors like that Amphenol’s growth is arriving with margins attached. Third-quarter sales rose 65%, helped by acquisitions, and the adjusted operating margin held at 29.7%. Amphenol makes the connectors and interconnect systems that carry signals and power inside servers, and its information technology and data communications unit, which sells to data-center customers, has become nearly half of sales. Management said about three-quarters of that unit’s sales are tied to AI, and orders outran shipments in the quarter, which builds backlog for later quarters.

Truist Securities analyst William Stein maintained a Buy rating and raised his price target to $112 from $107.50 on October 29, citing the company’s margin-driven growth outlook. Management backed that confidence with a higher dividend and a $4 billion share repurchase program, raised its outlook for the acquired CommScope business, and guided fourth-quarter sales higher again.

Our ranking of 12 tech stocks everyone is talking about covers more of the group. For Amphenol itself, the question is whether orders keep outrunning shipments once the AI buildout hits the slower, more expensive phase that markets now expect.