5 Red-Hot Growth Stocks to Buy in 2025

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The surge in the market is being fueled by growth stocks, primarily from tech firms. Given the current market momentum, it remains an excellent opportunity to incorporate growth-oriented investments into your investment mix.

Let’s look at five great options to buy this year.

1. Advanced Micro Devices

Despite trailing slightly behind Nvidia in the graphics processing unit (GPU) sector, Advanced Micro Devices (AMD) has carved out a unique position in the inference market. For instance, during the last quarter, it disclosed that one of the world’s largest artificial intelligence (AI) model companies was utilizing its GPUs to handle a substantial portion of their daily inference workload. This is noteworthy because experts predict that the inference market will eventually dwarf the market for training.

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For AMD, this presents a significant advantage due to its comparatively smaller stature. In the first quarter, Nvidia’s data center earnings surpassed an impressive $39 billion, while AMD managed only $3.7 billion. Given such a disparity, even minor increases in market share could lead to substantial growth for AMD.

For this purpose, the company is part of a group, which includes Intel, Broadcom (AVGO), and several others, known as a consortium. This consortium has developed an open interconnect standard called UALink, aiming to challenge Nvidia’s exclusive NVLink standard. If UALink becomes the industry norm, it would empower customers to use AI chips from multiple vendors interchangeably. Such a scenario would represent a significant win for AMD.

Given the prediction that inference demands are likely to surpass training requirements and considering AMD’s evident growth trajectory, there’s still a significant potential for this stock to keep climbing higher.

2. Broadcom

In contrast to my pursuit of catching up with Nvidia in the GPU market, Broadcom is steering its focus towards designing custom chips and enhancing its networking infrastructure. The growth in this sector has been robust, as our components play a crucial role in moving enormous volumes of data swiftly across vast AI networks. Consequently, our AI networking revenue skyrocketed by an impressive 70% during Q1.

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The most significant potential for this lies in the development of custom AI chips. Broadcom played a role in helping Google design its Tensor Processing Units (TPUs), and it’s now collaborating with leading hyperscalers on their own custom chip designs. Since designing custom chips can be expensive, these projects are typically for large-scale deployments. According to Broadcom, the three customers who are most advanced in this area could potentially tap into a market opportunity worth between $60 billion and $90 billion by fiscal 2027.

Let’s not miss out on Broadcom’s purchase of VMware. Their Cloud Foundation platform is increasingly important for handling Artificial Intelligence tasks across hybrid and multi-cloud settings. Following the acquisition, Broadcom switched VMware to a subscription service, thereby establishing a steady income source.

As an observer, I can’t help but notice the transformation happening at Broadcom. They are strategically leveraging AI networking, designing custom chips, and implementing virtualization to position themselves as a leading player in the AI industry.

3. Taiwan Semiconductor Manufacturing

I stand at the epicenter of the worldwide semiconductor industry, observing Taiwan Semiconductor Manufacturing (TSM) – a titan that crafts the world’s most cutting-edge semiconductors for the globe’s leading chip designers. Their unprecedented size and technical prowess have carved an impregnable barrier in the production of advanced chips, setting them apart from competitors.

Competitor Intel persists in spending money to establish a foundry operation, whereas TSMC has been significantly ahead in the market for smaller transistor technology due to Samsung’s production issues and the nodes being a measure of the size of transistors on a chip, expressed in nanometers.

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The growth of TSMC is being fueled by smaller nodes that enhance chip performance and energy efficiency. Most of TSMC’s income comes from chips built using 7nm technology and smaller, with Apple securing a significant portion of its upcoming 2nm production. Even Intel has turned to TSMC’s 3nm technology for some of their premium chips.

(Note: The term “node” refers to the size of transistors in a chip. A smaller node means more efficient and faster chips.)

The interest in AI processors continues to grow, and self-driving cars could soon become a significant sector for semiconductors. Ultimately, it doesn’t make much difference which company emerges victorious in the race for AI chips; TSMC stands to gain from the outcome either way.

4. Pinterest

Pinterest (PINS) is quietly making changes to turn its digital mood board into a more shopping-friendly platform, which is catching the eye of both brands and ad agencies. A significant drive for this shift is originating from Artificial Intelligence.

I’ve developed a versatile AI model that’s fluent in both visual and textual languages! This dual-competency empowers us to deliver content tailored to individual preferences, all while fueling our groundbreaking visual search feature. Imagine being able to click on an item within an image, like a chic handbag in a photo, and receive direct links for purchasing it or similar ones! This innovative feature has transformed Pinterest into a more transactional hub, enhancing user experiences significantly.

As an observer, I’ve noticed that Pinterest isn’t just concentrating on its user interface. Instead, it’s actively seeking to develop Performance+, an AI-powered advertising solution. This new tool aims to facilitate growth by reducing the manual effort required for advertising and enhancing effectiveness. With AI and automation at its core, Performance+ assists advertisers in various aspects such as creative development, targeting, bidding, and budget management.

Pinterest boasts a vast international user community that, up until now, may not have generated as much profit as it could. If the business successfully carries out its plan, there’s a strong possibility for significant growth in their stock value.

5. Toast

Toast(TOST) serves as much more than a simple restaurant point-of-sale system; it’s evolving into the underlying software infrastructure that supports the entire restaurant industry.

The business is consistently introducing innovative resources aimed at enhancing efficiency in operations and boosting restaurant revenue. Some of the latest introductions are AI-based tools such as ToastIQ and its smart “assistant sous chef,” designed to aid restaurants in making more informed choices and elevating the dining experience for customers.

In the same vein, Toast’s prosperity is closely tied to a restaurant’s success. By handling payment processing, Toast receives a portion of sales, which means that any operational enhancements that boost sales will also benefit Toast. The company expanded its clientele by onboarding over 6,000 new restaurant locations in Q1, and now serves more than 140,000 establishments.

Significantly, it’s not just confined to small, local eateries anymore. It has secured agreements with Applebee’s and Topgolf Callaway, and is seeing initial success overseas. Additionally, it has managed to establish a presence in related markets such as hotel restaurants and bars, as well as grocery stores.

Keeping an eye on rivalry and economic trends is important, but Toast’s rapid progress and inventive product development give it a strong advantage in the long run, making it a likely enduring success story.

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2025-07-21 11:52