3 Top Growth Stocks to Buy in the Second Half of 2025

For several decades, Jim McKay introduced ABC’s “Wide World of Sports” with a catchy phrase: “The joy of triumph, contrasted by the pain of setback.” This sentiment mirrors the experiences of many investors during the first half of this year, where there have been instances of success and times of loss.

The outcomes investors faced – be it victory or defeat – were largely determined by the stocks they held. To boost your odds of success moving forward, the choices you make regarding which stocks to invest in will matter significantly. For the remaining half of 2025, these three high-growth stocks may be worth considering:

1. Company A – Known for its innovative solutions and robust growth potential.
2. Company B – An industry leader with a strong track record of expansion and profitability.
3. Company C – Emerging as a disruptor in its sector, offering exciting opportunities for investors.

1. Alibaba Group Holding

From my vantage point, it appears that Wall Street has a soft spot for Alibaba Group Holding (BABA). Out of the 40 analysts polled by LSEG in July, an impressive 37 advised either a “buy” or a “strong buy.” The remaining three suggested maintaining the current position. The collective 12-month price target suggests a potential upside of around 40%. Admittedly, I don’t always share the same perspective as Wall Street analysts, but in this case, their optimistic views on Alibaba resonate with me.

One key point to note is that the name Alibaba wouldn’t be recognizable without the letters ‘A’ and ‘I’. Without them, it becomes “Lbaba”, which lacks the same familiar sound. Alibaba stands out as a significant player in the field of artificial intelligence (AI) within China. The Alibaba Cloud division holds approximately 36% of the Chinese cloud infrastructure market, nearly double the share of its closest competitor. Moreover, for seven consecutive quarters, the company has seen impressive revenue growth from its AI-related products, with this growth being in triple digits.

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Additionally, the business manages one of China’s top electronic commerce websites, with Alibaba’s Taobao and Tmall marketplaces consistently driving robust financial returns. Artificial Intelligence technology is being utilized to enhance the user experience across these platforms.

One reason I find Alibaba appealing is due to its valuation. The stock is trading at a forward earnings multiple of just 10.3, which represents a substantial discount for a tech company of its caliber. In the previous financial year, it generated an impressive $137.3 billion in revenue and recorded profits amounting to $17.4 billion.

2. Meta Platforms

META (Meta Platforms) might not get enough recognition as a significant player in the field of Artificial Intelligence. Unlike companies such as OpenAI, it’s not solely focused on AI. It also differs from tech giants like Amazon, Microsoft, and Alphabet’s Google in terms of cloud services. Yet, Meta is taking a substantial risk on AI technology that I believe will yield substantial returns.

The initial investment in AI is proving beneficial for Meta in several aspects. For instance, AI technology is enhancing Meta’s recommendation systems, leading to improved results. In the most recent quarter, this has resulted in a 5% increase in conversion rate on Reels. Over the past six months, these advancements in the recommendation system have boosted user engagement on Facebook by 7%, and Instagram by 6%. This increased user activity on these social media platforms corresponds to higher advertising income for Meta.

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Utilizing artificially intelligent business messaging platforms offers significant potential for expansion within our organization. In rapidly emerging economies like Thailand and Vietnam, businesses extensively employ Meta’s messaging applications to interact with their clientele. Implementing AI technology could allow us to replicate this strategy in developed markets such as the U.S. and other key regions.

It’s quite fascinating to consider that Meta might make a significant impact in the realm of AI devices. They’ve already proven their prowess with smart glasses, such as their Ray-Ban Meta AI glasses, and their Quest virtual reality headsets continue to captivate users. I believe that Meta could become a major contender in what could potentially be an enormous AI device market within the next few years.

3. Vertex Pharmaceuticals

It’s important to note that while many of the growth stocks I suggest purchasing towards the end of 2025 may not be AI-centric, there are exceptions like Vertex Pharmaceuticals (VRTX). This company is a notable drugmaker with promising growth potential.

Up until now, cystic fibrosis (CF) has been the main area of focus for Vertex throughout its existence. This specialization has proved advantageous for the leading biotech pioneer. In fact, Vertex is the sole company marketing therapies that address the root cause of CF. The newest addition to their CF drug family, Alyftrek, stands out with its user-friendly dosing regimen and is expected to achieve blockbuster status in no time.

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Despite focusing primarily on specific therapeutic areas, Vertex Pharmaceuticals has ventured into new horizons. Recently, Casgevy, the first-ever CRISPR gene-editing therapy approved, is aimed at treating two uncommon blood disorders: sickle cell disease and transfusion-dependent beta-thalassemia. Notably, earlier this year, Journavx was the first novel pain medication class to gain approval from the U.S. Food and Drug Administration in over twenty years. Given its potency as a non-opioid pain drug, I anticipate that this new product will continue Vertex’s streak of significant successes.

Additionally, there could be even more significant victories in the future. Vertex’s pipeline includes three other drugs that are currently undergoing advanced clinical trials. Inaxaplin is designed to address APOL1-related kidney disease, while Povetacicept focuses on chronic kidney disease caused by IgA nephropathy. Lastly, Zimislicel shows promise in potentially curing severe type 1 diabetes. I’m optimistic about the prospects of success for all these projects.

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2025-07-19 13:13