2 red -hot growth stocks to buy in 2025

Growth shares helped large indices to rise last year, and two in particular stood out. Nvidia (NVDA -3.12 %? had the biggest gain in the Dow Jones Industrial Average, and Palantir technologies (Pltr) Delivered the best performance in the S&P 500. These players increased by 171 % and 340 % respectively.

Why did investors accumulate in these shares? Both have enjoyed the boom with artificial intelligence (AI). Nvidia dominates the AI ​​chip market, while Palantir uses AI as an important part of its software-as-a-service platform. As a result, revenue in both companies is soaring.

After these successes, you might think it’s too late to get into these top AI players. But we are actually in the early days of the AI ​​growth history, and these companies are well positioned to take advantage of the next chapters. Let’s take a closer look at these two red -hot growth shares that will remain purchase in 2025.

Image source: Getty Images.

1. Nvidia

First some background about this AI giant. Nvidia was not always linked to artificial intelligence. In its previous days it was known for its work on the video game industry. The company’s graphics treatment units (GPUs) drove the lively picture key for a great game (and they still do). But it soon became clear that GPUs could be useful in many other industries – so Nvidia developed the Cuda parallel computing platform to make this a reality.

Today, Nvidia serves different industries – from health care to cars – and its main focus is on artificial intelligence. The data center company is the majority of revenue, and it seems that there is much more growth in store. Here’s why. Nvidia will continue to take advantage of the ongoing AI-Infrastructure expansion that delivers GPUs and other products. For example, the United States has just announced a new $ 500 billion AI-Infrastructure project and appointed Nvidia as a key technology partner.

On top of this, Nvidia is ready to win from the next wave of AI growth: to apply AI to real situations. Agentic AI-the use of AI agents to consider problems, justify and apply solutions-is a big part of it, and Nvidia has already taken steps here. The company offers drawings to customers to design their own AI agents.

So today, which acts for 49 times forward -looking earnings estimates, Nvidia looks at reasonable prices and makes a fantastic growth purchase for 2025 onwards.

2. Palantir Technologies

20-year-old Palantir was once known for his contracts with governments, its largest customer group. But recently, a new growth driver has emerged: the commercial customer. Palantir sells software that brings together a customer’s data and helps to exploit this data to make often changing decisions.

The company launched a new product, its Artificial Intelligence Platform (AIP), a little more than a year ago, and that has helped this transition to happen. AIP integrates AI into the data collection and decision -making processes. Palantir’s commercial customers, a total of 14 just four years ago, have risen to about 300 – concrete proof that AIP is driving the growth of Palantir.

An even more good news is that the state’s revenue continues to rise, which shows that the company now has two strong growth drivers. In the past quarter, the state’s and commercial revenue increased by double -digit digits, and Palantir reached his biggest profits ever.

AIP is still a relatively new product and the number of commercial customers today provides plenty of space for growth. In addition, as mentioned, AI is still in its early growth stages. Today’s $ 200 billion AI market can exceed $ 1 trillion by the end of the decade.

And although Palantir looks expensive compared to forward-looking earnings estimates-its forward-pricing-to-earnings (P/E) relationship is 165-a metric that considers growth, another story says. Palantir’s Forward-Prize/Earnings-to-Growth (PEG) ratio of 0.3 is reasonable, given that conditions of more than 1 indicate that a stock is overrated. All this means that Palantir remains a solid purchase for growth investors in 2025.