Growth stocks are continuing to fuel gains in the market, making them a solid choice for investors. If you have some side hustle earnings you want to put to work, here are five growth stocks worth considering—each could be a smart addition to a growth-oriented portfolio starting with $1,000.
1. Nvidia
Nvidia, a standout in the AI space, is poised for substantial growth. The demand for AI data centers is on the rise, and Nvidia’s GPUs are the go-to chips for powering AI applications. Their CUDA software platform and NVLink interconnect system have given them around 90% market share in the GPU sector, particularly vital for training large-scale language models (LLMs).
2. Alphabet
Unlike other AI data center operators, Alphabet (Google) has a unique edge in the AI race, benefiting from its comprehensive AI technology stack. They’ve developed custom AI chips to train their leading LLM, Gemini, which is now embedded across various products, notably Google Search. This integration has translated into significant revenue growth. Google Cloud has also seen impressive performance, with a 34% increase in revenue last quarter, and it appears that Alphabet’s AI potential is just beginning to unfold.
3. Pinterest
Pinterest is another attractive investment, showing strong earnings growth of 17% last quarter alongside an undervalued P/E ratio of about 12.5. Once just an online vision board, it’s now evolving into an AI-powered shopping platform with visual search capabilities that link users directly to products in photos. Its new Performance+ suite helps advertisers enhance targeting and boost conversions.
4. Toast
Toast has emerged as a strong player in the Software-as-a-Service (SaaS) arena, offering a software suite that streamlines operations for small and medium-sized restaurants. They’ve recorded impressive growth with a 30% rise in annual recurring revenue (ARR) last quarter and a 23% increase in new locations adopting their solutions. Their expansion into larger chains and international markets looks promising.
5. Elf Beauty
In the consumer space, Elf Beauty has positioned itself well, gaining market share in cosmetics. The company still has room for growth, especially as it looks to expand internationally. Its recent acquisition of the Rhode brand, which has rapidly scaled to over $200 million in sales, could significantly enhance their growth trajectory in the coming years.
