Top Growth Stocks to Watch: ServiceNow, AMD, and CrowdStrike

ServiceNow (NYSE: NOW), AMD (NASDAQ: AMD), and CrowdStrike (NASDAQ: CRWD) have delivered impressive gains for their investors. Each stock has shown significant increase in value, making them potential long-term investments.

Since its 2012 IPO, ServiceNow has increased nearly 5,680% from its opening price. AMD, which began trading in 1979, has risen about 4,900% over the past two decades. Meanwhile, CrowdStrike’s stock has surged roughly 1,190% since going public in 2019.

Investors today might hesitate to buy into growth stocks due to the unpredictable tariffs from the Trump administration and other macroeconomic uncertainties. Nevertheless, these three companies are likely to offer substantial growth opportunities over the next decade.

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1. ServiceNow

ServiceNow’s cloud-based platform improves efficiency for large companies by organizing workflows into structured digital systems. By merging different departments and enhancing communication, the platform allows businesses to delegate tasks effectively and adapt to hybrid work environments. The Now Assist AI platform turbocharges this process with automation and chatbots.

This company thrives in both booming and declining markets. During economic growth, businesses leverage its tools for expansion, while in downturns, they use it to cut costs. From 2019 to 2024, ServiceNow witnessed its number of high-value clients (those with annual contracts over $1 million) more than double, climbing from 892 to 2,109, even amid pandemic-related challenges.

Looking ahead, analysts predict ServiceNow’s revenue will grow at a compound annual growth rate (CAGR) of 19% between 2024 and 2027, while earnings per share (EPS) is expected to rise at a CAGR of 27%. Priced at 120 times this year’s earnings, it may not seem cheap, but the prospects for sustained double-digit growth remain strong.

2. AMD

AMD is the second-largest producer of x86 CPUs for PCs and servers, following Intel. It also ranks second in discrete GPU production, closely trailing Nvidia. Under CEO Lisa Su’s leadership since 2014, AMD has significantly improved its market position through focused innovations.

Reforming CPU and GPU designs and outsourcing production to TSMC allowed AMD to surpass Intel in recent years. Additionally, the acquisition of Xilinx expanded its capabilities in programmable chips, while collaborations with ZT Systems bolstered its data center offerings.

As AMD faces stiff competition in the AI sector, the company is rolling out more affordable data center GPUs to challenge Nvidia. Analysts forecast AMD’s revenue will grow at a CAGR of 18% from 2024 to 2027, with EPS expanding at a remarkable 66%. Despite being priced at 59 times its earnings, it presents an attractive opportunity in the growing semiconductor industry.

3. CrowdStrike

CrowdStrike’s Falcon platform provides endpoint security tailored to a wide array of industries. Unlike many traditional cybersecurity firms that rely on on-premise appliances, CrowdStrike delivers its services as cloud-based solutions, which are more scalable and can be updated remotely.

From fiscal 2020 to fiscal 2025, the percentage of CrowdStrike’s year-end customers utilizing at least five of its cloud modules increased from 33% to 67%. To further strengthen customer retention, CrowdStrike is introducing new AI-driven services to compete with companies like SentinelOne.

From fiscal 2025 to fiscal 2028, analysts expect CrowdStrike’s revenue to grow at a CAGR of 23%. Furthermore, the company is projected to achieve GAAP profitability by fiscal 2027 and potentially triple its net income the following year.

Although CrowdStrike’s stock trades at 23 times this year’s sales, its cloud-native cybersecurity model, coupled with market growth and recession resistance, make it a viable option for long-term investors.

Final Thoughts on Investing in ServiceNow

Before making a purchase decision regarding ServiceNow’s stock, take this into account:

The analyst team identified what they consider the 10 best stocks for today’s investors, and ServiceNow is not included on this list. The selected stocks have the potential for substantial returns in the coming years.

For example, if an investor had put $1,000 into Netflix when it first made the list on December 17, 2004, they would now have $620,719. Similarly, a $1,000 investment in Nvidia on April 15, 2005, would have grown to $829,511.

Current average returns for the recommended stocks stand at an impressive 959%, compared to 170% for the S&P 500.

Leo Sun holds no positions in any of the mentioned stocks. The Motley Fool has positions in and recommends Advanced Micro Devices, CrowdStrike, Intel, Nvidia, ServiceNow, and Taiwan Semiconductor Manufacturing.

The views and opinions expressed herein are those of the author and do not reflect the views of Nasdaq, Inc.