Investors Eye Two Hypergrowth Stocks Amid Market Volatility

The market remains volatile in 2025, with stocks trading well below their previous highs. For long-term investors, this environment presents opportunities. Currently, there are at least two hypergrowth stocks available at discounted prices, allowing investors to take advantage of ongoing market fluctuations. Hypergrowth stocks are defined as companies that have experienced revenue growth of 30% or more recently.

Top Hypergrowth Stocks for Long-Term Investors

Here are two hypergrowth stocks that long-term investors should consider now.

1. Nvidia

Nvidia (NASDAQ: NVDA) has demonstrated impressive revenue growth of over 100% last year, including a substantial 78% last quarter. Despite this growth, it has a forward price-to-earnings (P/E) ratio of 21.5 based on this year’s analyst estimates and a price/earnings-to-growth (PEG) ratio of 0.4. Generally, stocks with PEGs below 1 are considered undervalued, and hypergrowth stocks often trade at higher premiums.

The stock has faced pressure due to concerns about tariffs and new export restrictions on its chips to China. Last year, China accounted for approximately 11% of Nvidia’s sales. Nevertheless, sales to China have not historically driven significant growth for the company, and demand for Nvidia’s graphic processing units (GPUs) remains strong amidst these challenges.

As Nvidia continues to ramp up production of its Blackwell chips, it is poised for robust growth, even with a potential decline in Chinese sales. The company may redirect its H20 chip manufacturing to other GPU models, specifically the H100 and H200 chips, since they share the same architecture. Despite logistical hurdles, some Nvidia GPUs are likely to reach China through unofficial channels.

Looking ahead, Nvidia’s opportunities appear significant as businesses build data center infrastructure to meet increasing demand. Cloud computing companies are enabling customers to develop their own AI models and applications, which require exponentially more computing power—a demand that translates to a higher need for GPUs.

With a commanding 80% market share in the GPU sector, Nvidia is well-positioned to benefit from the anticipated growth in AI data centers.

Image source: Getty Images.

2. Palantir Technologies

Palantir Technologies (NASDAQ: PLTR), another strong performer, achieved over 30% revenue growth last quarter. The data analytics and AI firm has shown consistent growth throughout 2024, culminating in a remarkable fourth quarter with a revenue increase of 36%. The company forecasts revenue growth of approximately 31% for 2025, potentially a conservative estimate.

As a software company, Palantir is likely to face minimal direct impact from tariffs. Its AI platform aids customers in solving problems and creating efficiencies, which is crucial during uncertain times. Notably, the company has developed solutions to assist in bringing manufacturing back to the U.S.

The commercial sector has been the primary growth driver for Palantir, as the company focuses on making AI applications more practical. This has led to strong customer growth, particularly as they transition from proof-of-concept projects to practical applications that address real-world challenges.

Palantir initially gained recognition in the government sector, where its software is used for critical tasks related to terrorism prevention and tracking COVID-19 cases. The platform also aids military operations by supporting better decision-making on battlefields. As the U.S. government is its largest customer, increased interest in AI is likely to fuel revenue growth. Additionally, the company’s recent contract with NATO for its Maven Smart System—a project leveraging AI to enhance military intelligence—could open new avenues for growth.

Although Palantir’s stock is priced at a premium post-market pullback, its long-term potential remains compelling.

Should You Invest $1,000 in Nvidia Right Now?

Before considering an investment in Nvidia, it’s essential to evaluate other opportunities. Analysts suggest alternatives that could yield significant returns.

For example, the Motley Fool Stock Advisor analyst team has previously highlighted ten stocks worth investing in, and Nvidia was not included on that list. The recommended stocks have shown the potential for substantial future growth.

Considering the historical success of similar recommendations, timely investments have produced impressive returns. Past suggestions, such as Netflix and Nvidia in earlier years, would have resulted in significant profits for early investors.

Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends both Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.

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