3 Hypergrowth Tech Stocks to Buy in 2025

In the fast-moving tech space, it’s not always easy to distinguish companies in hypergrowth mode from those that are just hype. Add to that the fact that artificial intelligence (AI) is fueling speculation in tech stocks, and the situation becomes even murkier.

To help you cut through all the noise, here are three compelling buying opportunities for the new year that have potential for years to come.

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1. Nvidia

Nvidia‘S (NVDA -1.77%) The leadership position in semiconductors with artificial intelligence cannot be overstated. The company has an estimated 70% to 95% of the AI ​​semiconductor market, and Nvidia’s strong third quarter (ended October 27) proved that this AI juggernaut is not slowing down.

Nvidia’s total revenue rose 94% to $35.1 billion in the quarter, and non-GAAP (generally accepted accounting principles) earnings per share rose 119% to $0.81, both above estimates Wall Street is located. Nvidia’s data center segment is the catalyst for this growth: revenue rose 103% to $30.8 billion compared to the same quarter last year.

CEO Jensen Huang estimates that companies will spend 2 trillion dollars in AI data center investments over the next five years. Even if it was just half that, Nvidia would benefit immensely from this spending as major tech companies gobble up its powerful GPUs for AI.

With a price-to-earnings ratio of 54.5, Nvidia isn’t exactly cheap. However, the company’s fantastic growth and leadership in AI chips at a time of huge investment means the company is still a good buy in the long term.

2. Palo Alto Networks

Palo Alto Networks (PANW 1.21%) is another great hypergrowth opportunity for investors, especially if you are interested in cybersecurity. The company’s firewalls, cloud security and endpoint security products and services consistently provide the company with a leadership position Gardener‘s cybersecurity ranking.

The company recently announced its results for the first quarter of fiscal 2025 (ended October 31). Revenue rose 14% to $2.1 billion, while non-GAAP earnings rose 77% to $0.99, beating analysts’ consensus estimates for revenue and profit.

A bright spot in Palo Alto’s quarter was its next-generation security annual recurring revenue (ARR) increase of 40% to $4.5 billion. This means the company’s active contracts for cloud-based cybersecurity services are growing quickly, which is good news as the global cybersecurity market grows to an estimated $272 billion by 2029, according to Statista.

Like many technology stocks right now, Palo Alto shares aren’t cheap, with a P/E ratio of around 50.3. But the company’s security leadership, current growth, and long-term opportunities in the growing cybersecurity space make it a compelling opportunity for investors.

3. AppLovin

AppLovin (APP 8.86%) is an advertising technology company that uses AI to help companies place ads on mobile apps and connected TVs. While the company may not be a household name, it has attracted a lot of attention from investors as its shares have skyrocketed almost 800% last year.

AppLovin reported strong third-quarter results (ended September 30): Total revenue rose 39% to $1.2 billion and diluted earnings per share rose 317% to $1.25. Both readings beat Wall Street consensus estimates.

AppLovin is tapping into a massive digital advertising market currently worth $740 billion worldwide. And by 2028, an estimated 81% of digital ads will be generated by programmatic advertising like AppLovin’s platform, according to Statista. This gives the company plenty of opportunity to expand its reach in the coming years, even beyond its current growth.

Like the other stocks on this list, AppLovin isn’t cheap, with a P/E ratio of 102.3. Long-term investors may want to wait for the share price to fall a bit before buying shares, but with analysts expecting AppLovin’s earnings per share to rise 32% from 2024 to 2025 and the AI-driven adtech market expanding rapidly , this is probably the case with the stock having more room to run.