Three hypergrowth tech stocks to buy in 2025: Nvidia, Palo Alto Networks, and AppLovin
From Nasdaq: 2024-12-06 06:00:00
- Nvidia, a leader in AI semiconductors, saw total sales rise 94% in Q3 to $35.1 billion. With a dominant market share, Nvidia’s data center segment is driving growth, as CEO Jensen Huang predicts $2 trillion in AI investments over five years. Despite a P/E ratio of 54.5, Nvidia remains a strong long-term buy.
- Palo Alto Networks reported a 14% revenue increase in Q1 to $2.1 billion, with non-GAAP earnings up 77%. The company’s 40% growth in next-gen security ARR to $4.5 billion positions it well in the growing $272 billion cybersecurity market. While shares trade at a P/E of 50.3, Palo Alto’s leadership in security makes it an attractive investment.
- AppLovin, an AI-driven adtech company, reported a 39% revenue increase in Q3 to $1.2 billion, with EPS rising 317%. Operating in a $740 billion digital ad market, AppLovin’s platform is well-positioned for growth, with a projected 81% of digital ads being programmatic by 2028. Despite a P/E ratio of 102.3, long-term investors see potential in AppLovin’s continued expansion.
Read more at Nasdaq: 3 Hypergrowth Tech Stocks to Buy in 2025