3 Hypergrowth Tech Stocks to Buy in 2025

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Leo Sun, The Motley Fool

Tue, Apr 8, 2025, 2:14 AM 5 min read

The Trump administration's "Liberation Day" tariffs against astir of America's trading partners precocious deflated galore high-growth tech stocks. Higher tariffs, peculiarly against Asian countries, could strangle the proviso chains of large American tech companies specified arsenic Apple and HP. Reciprocal tariffs from those markets would further throttle their overseas sales.

Those headwinds volition astir apt thrust much investors toward tariff-resistant stocks successful different sectors and fixed-income investments specified arsenic CDs and T-bills. Therefore, it mightiness look similar an atrocious clip to bargain the tech sector's hypergrowth stocks.

A idiosyncratic checks a trading screen.

However, investors who program to clasp their stocks for a fewer years alternatively of a fewer quarters mightiness find immoderate compelling buying opportunities successful this messy market. Let's look astatine 3 of those hypergrowth stocks -- Nvidia (NASDAQ: NVDA), Palantir Technologies (NASDAQ: PLTR), and Reddit (NYSE: RDDT) -- and spot wherefore they mightiness beryllium worthy accumulating successful this seller's market.

Nvidia, the world's largest shaper of discrete GPUs, has been 1 of the market's hottest AI stocks. Its GPUs were erstwhile chiefly associated with gaming and graphics, but they're present wide utilized to process analyzable instrumentality learning and AI tasks.

Nvidia faces near-term headwinds from higher tariffs and tighter export curbs connected its shipments to China. However, it inactive controls astir 98% of the information halfway GPU market, according to TechInsights, and it doesn't look immoderate meaningful competitors. So arsenic agelong arsenic the AI marketplace keeps expanding, the market's request for its chips should proceed to outstrip its disposable supply.

Nvidia's gross and adjusted net per stock (EPS) surged 114% and 130%, respectively, successful fiscal 2025, which ended this January. But analysts expect its gross and adjusted EPS to emergence different 56% and 52%, respectively, successful fiscal 2026 arsenic the AI roar continues. Those are unthinkable maturation rates for a banal that trades astatine conscionable 23 times guardant earnings.

Nvidia could surely miss those estimates arsenic the macro headwinds intensify, but it's inactive selling the champion picks and shovels for the AI golden rush. If you expect it to support expanding, its 30% year-to-date diminution mightiness correspond a large buying opportunity.

Palantir is simply a information mining and analytics institution that operates 2 main platforms: Gotham for its authorities clients and Foundry for its commercialized clients. Its platforms aggregate information from disparate sources to assistance its clients marque smarter data-based decisions, and it's been streamlining that process with much integrated AI services. Most U.S. authorities agencies already usage Gotham to stitchery and analyse their data, portion Foundry is serving a increasing fig of ample corporations.