Buying the latest big growth stocks can be smart, but only if they’re priced right. Following the crowd after a stock has made a big move sometimes doesn’t work, so there are some considerations to keep in mind before making the move.
However, I’ve found three hot growth stocks that are worth buying now and whose valuations aren’t too high to profit from.
After NVIDIA‘s (NASDAQ: NVDA) At the latest sell-off, it is more than 10% below its 2024 highs, making it an interesting stock to sell. Nvidia’s growth has been incredible, as in its most recent quarter its revenue increased 94% year over year. This red-hot growth comes from its top-notch graphics processing units (GPUs) that are used to train artificial intelligence (AI) models.
Demand for this hardware began in 2023 and will continue to expand in 2025. Wall Street analysts project 51% revenue growth in fiscal 2026 (ending January 2026), so Nvidia will continue to be red hot .
However, the price investors have to pay for Nvidia shares has dropped significantly, as it is only trading at a price-to-earnings (P/E) ratio of 51, at the time of writing. Compared to Apple either microsoftTrading for 41 and 36 times earnings, respectively, Nvidia stock doesn’t look all that expensive, especially considering that Apple and Microsoft are only projected to grow revenue by 6% and 14% in 2025, respectively.
Nvidia stock is red hot and much cheaper than it used to be. I think it’s a great stock to own before 2025 hits.
If Nvidia is a big growth stock, what about the chip company that makes most of Nvidia’s chips used in its GPUs? Taiwan Semiconductors (NYSE: TSM) has been a dominant company in this space and also makes chips for giants like Apple. Its chip foundries have become the best in the sector and its dominance has directly impacted its financial results.
In the third quarter, TSMC’s revenue increased 36% year over year in US dollars, thanks to its strong AI business that is expected to triple this year. Wall Street analysts expect this dominance to continue through 2025, with revenue expected to rise about 25% in new Taiwan dollars.
Taiwan Semiconductor shares trade at 31 times trailing earnings, much cheaper than Apple and Microsoft compared previously, despite growing much faster. As a result, Taiwan Semi still looks like a great buy and has plenty of future growth ahead.
MercadoLibre (NASDAQ: MELI) It’s a significant departure from the previous two companies. It has nothing to do with AI or technology. Rather, it is a Latin American e-commerce giant with a significant presence in the fintech space. Essentially, it is Amazon yes it also includes PayPal.
