If your aim is a red-hot summer of profits, then setting your sights on growth stocks should be at the top of your investment agenda. Identifying the prime growth stocks to acquire, perhaps using tools like the Portfolio Grader, constitutes a sound initial step in your journey as an investor.
Growth stocks epitomize companies poised to expand at rates exceeding the market average. These entities generally channel earnings back into their operations for growth, innovation, or scaling up activities, typically offering minimal to no dividends, given their ardor for advancement. Their antitheses are value stocks; the former, in contrast to growth stocks’ soaring price-to-earnings or price-to-book ratios, typically represent mature enterprises with unwavering earnings and dividends.
While the traditional stock market may hit a seasonal slump during summer, there’s no reason to shy away from investments. In fact, the growth stocks outlined below could potentially outperform the market, paving the way for a lucrative summer investment season.
Performance Dynamite: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) continues to prove its mettle as one of the most stellar growth stocks to possess; this momentum shows no sign of waning anytime soon. The juggernaut semiconductor firm is currently roaring ahead, with its graphics processing units (GPUs) witnessing fervent demand for their prowess in operating generative artificial intelligence applications.
Recently, Nvidia secured a significant victory with its fresh collaboration with Northrop Grumman (NYSE:NOC), where the aerospace and defense heavyweight will leverage Nvidia’s AI platform and generative AI software.
Owning an impressive 80% share of the AI chip market places Nvidia in a formidable position for years onward. NVDA stock has surged by 90% this year and is on track to breach the $1,000 per share mark after its forthcoming earnings announcement on May 22. The Portfolio Grader assigns it “A” ratings for growth and overall prospects.
AI Powerplayer: Palantir Technologies (PLTR)
Palantir Technologies (NASDAQ:PLTR) may not boast Nvidia’s scale, but it stands as a robust growth entity leveraging artificial intelligence to achieve substantial gains.
Initially known for its defense contracting activities, Palantir uses AI and machine learning to furnish real-time analytics and prognostications to military units in the field.
However, it’s swiftly expanding its commercial operations through its Artificial Intelligence Platform and Gotham platform. An essential tie-up with Oracle (NYSE:ORCL) is set to render these products accessible through Oracle’s cloud network.
Despite a slight descent following its first-quarter earnings release, a brighter future looms for this company.
The recent revenue report showcased earnings of $634.3 million, marking a 21% uptick from the previous year. Palantir anticipates revenue ranging from $649 million to $653 million in the second quarter and has elevated its full-year revenue guidance to the $2.677 billion – $2.689 billion bracket.
PLTR stock has climbed by 26% this year and an impressive 128% over the past year. It secures a “B” grade for growth and an overall “A” rating in the Portfolio Grader.
AI Maestro: Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is cleverly harnessing AI trends to ascend as the reigning monarch among corporations, commanding a staggering market capitalization of $3 billion.
The software behemoth proffers an array of globally renowned products like Word, Excel, PowerPoint, Outlook, and Microsoft Teams.
Its Microsoft 365 suite stands as an indispensable tool for both businesses and personal computer users worldwide.
Microsoft forges a vital alliance with OpenAI, the brains behind ChatGPT. Endowing $13 billion into OpenAI across the years, Microsoft steers the avant-garde by integrating ChatGPT generative AI into its Bing search engine, Edge browser, and Microsoft 365 offerings.
Shrewdly rebounding from a recent dip, the stock has advanced by 11% year-to-date, obtaining “B” marks for growth and overall performance in the Portfolio Grader.
Digital Hegemon: Alphabet (GOOG)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) emerges as a powerhouse in its own right. With its reign over the Google search engine, Chrome browser, and entities like YouTube, Alphabet exerts dominion over advertisers and content creators alike.
The corporation amassed a staggering $80.5 billion in revenue in Q1 2024 – an exceptional feat – with Google search advertising accounting for $46.1 billion of this sum.
Revenue soared by 15% compared to the previous year, underpinned by robust growth in YouTube advertising and Google search.
Certain pessimistic speculations suggest that OpenAI, the mastermind behind ChatGPT, may unleash a novel AI-infused search engine in collaboration with Microsoft, potentially targeting Bing search.
OpenAI CEO Sam Altman refutes immediate revelations, yet rumors persist, casting a shadow on GOOG shares.
My recommendation? Seize the moment if GOOG shares continue their descent. It might offer a golden opportunity.
Computing Pioneer: Super Micro Computer (SMCI)
If your outlook is bullish on the growth front of computing and AI – and why wouldn’t it be? – then another prize growth asset warranting close examination is Super Micro Computer (NASDAQ:SMCI).
After a considerable surge in 2023 and early 2024, Supermicro stock has somewhat retraced,
Exploring the Unyielding Terrain of Financial Markets
Super Micro Computer Inc. (SCMI)
The numbers may point south, but where some see a crisis, shrewd investors discern opportunity. Amidst a dramatic 23% drop in SCMI stock following an earnings report, the tides suggest a different narrative – one teeming with potential and promise. Super Micro Computer Inc. showcases flair in its earnings report as sales charge ahead, tripling from the previous year, and earnings per share soar fourfold. Even as bearish winds howl, the core essence of Super Micro Computer remains unaltered.
The ethos of the company hinges on forging strong alliances with chip juggernauts such as Nvidia, crafting cutting-edge server architecture bedecked with potent AI chips. This symbiotic relationship ensures that Super Micro Computer is well-equipped to handle intricate, demanding tasks with precision and flair. Despite the market’s oscillations, SMCI stock bears witness to a dazzling 218% surge in the current year. Drenched in “A” ratings for growth and overall performance in the Portfolio Grader, Super Micro Computer Inc. unfurls a tapestry of perseverance and innovation in the dynamic realm of tech stocks.
Meta Platforms (META)
Peering through the kaleidoscope of social media juggernauts, Meta Platforms emerges as a towering colossus, orchestrating the symphony of Facebook, Instagram, Messenger, Threads, and WhatsApp. In the turbulent waters of the metaverse, Meta Platforms found a calm harbor, investing prodigious sums in the ethereal realms where CEO Mark Zuckerberg envisions the future of computing and digital landscapes.
While Zuckerberg’s metaverse saga unfolds, Meta Platforms’ enduring allure lies in the resilience of its core products. A staggering half of the global populace, nearly 4 billion souls, flock to Meta’s platforms as monthly average users, a feat that unfurls an era of wonder and possibilities. Armed with reams of user data, the company wields a razor-sharp precision in tailor-made advertisements, leveraging the minutiae of user profiles and postings to reach the most receptive audience.
The chronicles of META stock unveil a commendable 33% ascent in the year 2024. Laden with “A” ratings for growth and overall performance in the Portfolio Grader, Meta Platforms stands as a testament to endurance and innovation in the realm of social media dynasties.
SoundHound (SOUN)
A beacon of innovation in the ocean of tech enterprises, SoundHound emerges as a trailblazer in the realm of voice recognition products, empowered by the arcane forces of artificial intelligence. Its diverse array of products beckons customers to a world where queries about vehicle maintenance meld seamlessly with meticulous, step-by-step employee training modules.
Nvidia, the titanic figure in the realm of chip manufacturing, cast its discerning gaze upon SoundHound, heralding a meteoric surge in SOUN stock as investors flocked to witness the spellbinding saga unfold. The echoes of a robust quarter resound through SoundHound’s chambers, as auto units and cloud users blossom magnificently, bolstered by a resplendent 73% surge in revenue from the bygone year.
Despite the fiscal landscape’s undulating terrains, SOUN stock flourishes with a remarkable 141% flourish in the year 2024. Emblazoned with an “A” rating for growth and a sturdy “B” overall grade in the Portfolio Grader, SoundHound stands tall as a paragon of innovation and growth in the throbbing heart of the stock market.
