3 Brilliant Growth Stocks to Buy Now and Hold for the Long Term

  • Nvidia has a long growth track as it continues to build its AI infrastructure.

  • Meta Platforms used AI to drive growth.

  • Dutch Bros is one of the best growth stories in the restaurant space.

  • 10 Stocks We Like More Than Nvidia ›

For more than a decade, growth stocks have been the driving force behind market growth. As long as the bull market lasts, this trend is likely to continue.

Let’s look at three brilliant growth stocks that you might want to consider buying today and holding for the long term.

Image source: Getty Images.

Nvidia (NASDAQ: NVDA) it was the ultimate growth stock, with the company producing insane revenue growth for a company of its size. Last quarter, it grew its revenue by 62% to $57 billion. That’s more than 3 times the $18.1 billion in revenue it generated just two years ago.

As spending on artificial intelligence (AI) infrastructure continues to grow, the company is one of the best positioned to take advantage of this opportunity. Nvidia’s graphics processing units (GPUs) have become the backbone of AI infrastructure given their robust parallel processing capabilities that can perform many calculations simultaneously. Meanwhile, it carved out a wide moat with its CUDA software platform, locking in developers with its long-standing set of libraries and core code that optimizes its GPUs for AI workloads.

While competition is heating up with ASICs (application-specific integrated circuits), these preprogrammed chips have higher initial costs and lack the flexibility of GPUs, which can be reprogrammed. Nvidia’s chips are also more readily available, and it has capacity at fabs (chip manufacturing facilities) locked down. This will keep it a long-term winner.

Another company that is experiencing strong growth is Meta platforms (NASDAQ: META)the owner of Facebook and Instagram. Last quarter, it saw revenue growth accelerate to 26% year-over-year, up from 22% year-over-year growth in Q2 and 16% in Q1.

Meta Growth is powered by AI, which helps keep users on its platform longer by providing them with more personalized content they’re interested in. At the same time, it has created AI-based tools that can improve user targeting and improve ad creation. Combined, this leads to more ad space and better performing ads, which drives up prices. Last quarter, Meta saw a 14% increase in ad impressions, while ad prices rose 10%.

The company is investing heavily in AI, so these improvements should improve over time. Meanwhile, it has just started running ads on its popular messaging platform WhatsApp and its newest social networking site, Threads, which it continues to build. This should help increase power in the future.

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