Three Promising Hypergrowth Stocks for Volatile Markets
Investing in hypergrowth stocks can seem risky amidst the unpredictable tariffs from the Trump administration, elevated interest rates, and ongoing geopolitical tensions. These factors could lead many investors to opt for safer, more conservative investments. However, looking past these immediate concerns, the current market may present a viable opportunity to consider these volatile growth stocks as long-term investments.
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Here are three hypergrowth companies showing momentum that may thrive even in a challenging market: IonQ (NYSE: IONQ), Nu (NYSE: NU), and PDD (NASDAQ: PDD).
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1. IonQ
IonQ stands out as a leading player in the emerging quantum computing market. Unlike traditional binary computers that rely on bits (zeros and ones), quantum computers utilize qubits to store both zeros and ones at once. This allows for the processing of vast data volumes at accelerated speeds, though they are more complex, costlier, and power-hungry than binary computers and tend to produce more errors.
The company offers high-end quantum computing systems and also provides cloud-based computing services. IonQ currently sells three models: the Aria system, the commercial Forte system, and the on-premise Forte Enterprise system. A new model, the Tempo, is set to launch soon.
IonQ’s revenue skyrocketed by 430% in 2022, followed by 98% growth in 2023 and projected 95% growth in 2024. Looking ahead, the company anticipates an additional revenue increase of 74% to 120% in 2025 as its quantum computing capabilities expand.
While IonQ is not yet profitable, some analysts express optimism; analysts project a compound annual growth rate (CAGR) of 89% in revenue from 2024 to 2027. Such growth could make it more reasonably valued at about 13 times its 2027 sales, though it remains a speculative investment.
2. Nu Holdings
Nu, based in Brazil and also operating in Mexico and Colombia, is recognized as the largest online bank in Latin America. Its digital-only service model has allowed it to grow significantly faster than traditional banks. The bank’s customer base expanded rapidly, surging from 33.3 million in 2021 to 114.2 million in 2024.
Similarly, Nu’s activity rate improved from 76% in 2021 to 83% in 2024, benefiting from the introduction of a suite of services, including checking accounts, credit cards, lending, insurance, investment options, cryptocurrency, e-commerce, and business solutions. The company is also enhancing its infrastructure with AI upgrades in analytics, chatbots, and cybersecurity tools.
With over 70% of Latin America’s adult population still unbanked, Nu has significant growth potential. Analysts predict a CAGR of 32% for revenue and 40% for earnings per share (EPS) from 2024 to 2027, as the bank attracts more customers into its fintech ecosystem.
Despite its impressive growth, Nu’s current trading valuation at 20 times this year’s earnings might dip due to inflation and currency fluctuations affecting the region. Nevertheless, its growth trajectory remains appealing, supported by notable investors like Warren Buffett.
3. PDD Holdings
PDD Holdings, or Pinduoduo, ranks as China’s third-largest e-commerce company by annual revenue, trailing behind Alibaba and JD.com. It initially focused on a discount marketplace and later expanded into an online farm-to-table agricultural platform and the Temu marketplace for international consumers.
From 2016 to 2023, PDD achieved an impressive CAGR of 142% in revenue. The company shifted to profitability in 2021 by managing costs and reducing its reliance on lower-margin business facets.
Looking ahead, analysts forecast a CAGR of 34% for PDD’s revenue and 36% for EPS between 2023 and 2026. These growth figures are remarkable for a stock currently trading at just 10 times its anticipated 2025 earnings.
PDD, like Nu, is facing pressures from current economic factors, including China’s slow growth, U.S. tariffs, and ongoing geopolitical tensions. However, if these issues stabilize in upcoming quarters, PDD may regain investor confidence and command a higher valuation.
Should You Invest $1,000 in IonQ Now?
Before making a decision on investing in IonQ, be aware:
The Motley Fool Stock Advisor analyst team has selected their own list of top stocks, and IonQ is not on this list. The ten stocks identified by their team have strong potential for significant returns.
For reference, when Nvidia appeared on this list on April 15, 2005, a $1,000 investment would have grown to $745,726!*
The Stock Advisor service provides a comprehensive guide for building a successful portfolio, including regular analyst updates and two new stock picks each month. Since its inception in 2002, the service has more than quadrupled the return of the S&P 500.*
*Stock Advisor returns as of March 14, 2025.
Leo Sun has no position in any of the aforementioned stocks. The Motley Fool recommends Alibaba Group, JD.com, and Nu Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the author and do not reflect those of Nasdaq, Inc.
