3 Hot Growth Stocks to Buy in 2025

Picking the latest hot growth stocks can be smart, but only if they’re at the right price. Following the crowd after a big move in a stock sometimes doesn’t work, so there are a few considerations to keep in mind before making a move.

But I’ve discovered three popular growth stocks that are worth buying now and whose valuations aren’t too high to take profits.

1. Nvidia

later nvidia‘S (NVDA 3.08%) The recent sell-off has put it down more than 10% from its 2024 high, making it an interesting stock to sell. Nvidia’s growth has been incredible. In the most recent quarter, sales increased 94% year-over-year. This explosive growth comes from high-end graphics processing units (GPUs) used to train artificial intelligence (AI) models.

Demand for this hardware is expected to begin in 2023 and continue to expand into 2025. Nvidia will remain hot as Wall Street analysts forecast 51% revenue growth in fiscal 2026 (ending January 2026).

However, as of this writing, Nvidia stock only trades with a price-to-earnings (P/E) ratio of 51, so the price investors have to pay for Nvidia stock has been significantly lowered. compared to apologize or microsoftTrading at 41x and 36x earnings, respectively, Nvidia’s stock doesn’t seem all that expensive. Especially considering that Apple and Microsoft only project revenue growth of 6% and 14% in 2025, respectively.

Nvidia’s stock is hotter and a lot cheaper than it used to be. I think this is a great stock to buy before 2025.

2. Taiwan Semiconductor

If Nvidia is a hot growth stock, what about the chip company that manufactures most of the Nvidia chips that go into GPUs? taiwan semiconductor (TSM 1.32%) It has been a dominant company in this space and also makes chips for giants like Apple. Chip foundries have become industry leaders, and their dominance has had a direct impact on their financial results.

In the third quarter, TSMC’s revenue grew 36% year-over-year in U.S. dollars, thanks to its strong AI business, which is expected to triple this year. Wall Street analysts expect this dominance to continue through 2025, with revenues expected to grow by about 25% in New Taiwan Dollar terms.

Taiwan Semiconductor’s stock trades at 31x trailing earnings, much cheaper than Apple and Microsoft it previously compared to, despite much faster growth. As a result, Taiwan Semi still looks like a great buy and has a lot of growth ahead.

3. Mercado Libre

Mercado Libre (Mellie 3.26%) There are significant differences from the previous two companies. It has nothing to do with AI or technology. Instead, it is a Latin American e-commerce giant with a significant presence in the fintech space. Essentially it is Amazon If that is included too paypal.

This combination has been instrumental in the growth of e-commerce in Latin America, with MercadoLibre emerging as a leading company in the region. This has led to tremendous growth over the past decade.

MELI Operating Revenue (Quarterly YoY Growth) data from YCharts

Few companies have maintained growth above 30% for as long as MercadoLibre, and the results for shareholders have been astounding.

MercadoLibre’s growth is expected to extend through 2025, with revenue expected to increase by 24% in US dollars. But as MercadoLibre matures, all eyes are on revenue. Recently, MercadoLibre has struggled with bad debt in its fintech division, which has hit its bottom line. If this can be sorted out, Mercado’s profits will skyrocket even faster.

MercadoLibre may look expensive at 61 times trailing earnings, but looking ahead to what’s expected in 2025, including improving profit margins, it trades for a forward P/E ratio of 38. This is and will continue to be a much more attractive price tag. It is likely to provide investors with a solid return on their investment.