If you’re planning to invest $1,000 or more, spreading your money across different investments is a smart move. Consider choosing two or three stocks that offer variety – perhaps representing different industries or different types of investment strategies, like companies focused on rapid growth or those recovering from challenges. Diversifying your portfolio helps protect you, because if one investment performs poorly, others might balance it out.
With the S&P 500 currently rising and interest rates falling, now is a good time to consider adding some growth stocks to your investments. Here are three options, each with a unique potential story.
We’re looking at three interesting companies. One is a leading tech stock in the rapidly growing AI industry. Another is a biotech firm whose stock has recently fallen, but promising new drugs could change that quickly, especially given the strong need for these treatments. Lastly, there’s a major cruise line that’s experiencing increased revenue and stands to gain even more if interest rates decrease.
1. Nvidia
You’ve likely heard of Nvidia (NVDA), even if you don’t follow tech stocks. The company, which designs chips, has become incredibly prominent thanks to its powerful graphics processing units (GPUs) and the software that helps businesses use artificial intelligence. This success has led to significant revenue growth – increasing by double or even triple digits – and billions of dollars in earnings.
Nvidia currently dominates the market, and it will be difficult for competitors to take the lead. Nvidia consistently improves its already powerful chips every year, leaving little opportunity for rivals to close the gap.
This leading chipmaker is benefiting from a rapidly growing market with no signs of slowing down. Current spending on artificial intelligence is fueling the development of AI solutions for future, real-world applications. While this implementation has begun, it’s expected to significantly increase, and Nvidia’s graphics processing units (GPUs) are essential throughout the entire process. This makes Nvidia stock a strong long-term investment.
2. Viking Therapeutics
Viking Therapeutics (VKTX) stock is down 55% in the last year, and I believe this creates a great buying opportunity for investors looking for promising biotech companies. This drop isn’t due to any negative news about their drug development, and in fact, Viking has reported very positive trial results for drugs targeting the rapidly growing weight loss market.
Experts predict the weight loss drug market will be worth almost $100 billion before the end of the 2020s, and Viking Therapeutics could potentially benefit from this significant expansion.
The company is working on VK2735 in two forms: a pill you take by mouth and an injection. The pill is currently in the middle of phase 2 testing, while the injection is further along, in phase 3 trials, and closer to being available to patients.
VK2735 is a drug similar to the popular weight loss medications Mounjaro and Zepbound, both made by Eli Lilly. Because demand for these types of drugs is so strong, Viking Therapeutics believes VK2735 has the potential for significant growth as well.
That’s why now, with the stock price down, is a fantastic time to get in on this biotech story.
3. Carnival Corp.
As a financial observer, I remember Carnival Corporation (CCL and CUK) really hit a rough patch when the pandemic first started. They had to stop all their cruises, and to stay afloat, they ended up taking on a lot more debt. It was a challenging time for them, to say the least.
Recently, Carnival has shown significant improvement. Cruise bookings have increased sharply, resulting in record-high revenue and a return to making a profit. The company just reported its best quarter ever, with revenue exceeding $8 billion and net income reaching $1.9 billion.
Carnival is performing well because it’s focused on becoming more profitable – for example, by upgrading to newer, more fuel-efficient ships. Cruises are also generally popular, and people clearly enjoy taking them. Plus, lower interest rates are helping Carnival by reducing its debt costs, and they’re also good for consumers, potentially making them more likely to book a cruise.
Carnival’s stock currently trades at 13 times its estimated future earnings, which is a fair price considering the company has bounced back from recent challenges, is growing again, and looks set for continued success in the years ahead.
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2025-10-06 00:24