In this article, we will discuss the 10 Best Long Term Growth Stocks to Buy According to Billionaires.
As per Barclays, the US administration announced numerous executive orders with reforms associated with world trade, immigration, and global geopolitics, resulting in elevated levels of uncertainty and volatility, with markets witnessing a range of policy changes. The firm’s research analysts opine that higher uncertainty comes at a cost to global growth. In the US, there has been a decline in consumer confidence, while personal spending remains weak, and GDP forecasts declined sharply, says the firm.
What’s Ahead for US Economy?
S&P Global believes that the Trump administration’s shifting policy mix continues to result in a faster decline in growth in 2025. While the firm’s full-year growth rate remains unchanged at 1.9% (mainly because of higher base effects from a strong end to 2024), it expects a downshift in growth to 1.6% by Q4. It expects unemployment to drift higher, peaking at 4.6% by midyear 2026, with the public sector likely to limit the payroll expansion. This contrasts with strong contributions to job growth over the past 2 years.
S&P Global expects inflation to remain closer to 3.0% in 2025 as tariffs result in higher prices along the domestic supply chain and for end consumers. Therefore, the company anticipates one 25-basis-point federal funds rate cut for 2025, closing the year at the 4.00%-4.25% range.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
US Economy to Grow in 2025, Says Russell Investments
For 2025, Russell Investments expects a soft landing for the US economy. It assumes that the new administration will ease the more aggressive stances on tariffs and immigration. As per the firm, the US economy is projected to grow at a trend-like pace of 2.0% in 2025. The Trump administration’s policies exhibit a delicate balancing act. The firm believes that tax reforms and deregulation can help stimulate growth, mainly in domestic and cyclical sectors. Its working assumption is focused on the new administration not aggressively pursuing policies that result in inflation risk.
While the tariffs and immigration controls are likely to be implemented, the firm opines that the extent is expected to be constrained by the inflation outlook. Overall, Russell Investments expects the policy mix to support business confidence, which can fuel a resurgence in capital markets and offer favorable tailwinds for private assets.
Amidst these views, let us now have a look at the 10 Best Long Term Growth Stocks to Buy According to Billionaires.
An experienced fund advisor setting parameters on investments with remaining maturities of one to three years.
Our Methodology
To list the 10 Best Long Term Growth Stocks to Buy According to Billionaires, we used a screener and Insider Monkey’s exclusive database of billionaire stock holdings to shortlist the companies that have exhibited at least ~20% revenue growth over the past 5 years. For the stocks with the same number of billionaire holdings, we have used the number of hedge fund investors as a secondary metric to rank the stocks, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Long Term Growth Stocks to Buy According to Billionaires
10. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
5-Year Revenue Growth: ~59.2%
Number of Billionaire Investors: 9
Number of Hedge Funds: 49
Alnylam Pharmaceuticals, Inc. (NADDAQ:ALNY) is a leader in the study of RNA interference (RNAi) therapeutics. Canaccord Genuity reiterated a “Buy” rating on the company’s stock with the price objective of $390.00 after the recent approval of its drug AMVUTTRA® (vutrisiran). The firm’s analysts demonstrated confidence in the revenue potential of AMVUTTRA®, mainly in the treatment of ATTR-CM, which is a heart condition caused by transthyretin-mediated amyloidosis. Notably, AMVUTTRA is an RNAi therapeutic, which works upstream to deliver a rapid knockdown of TTR, addressing the disease at its source, with only 4 convenient subcutaneous doses per year.
Analysts at Canaccord believe that the market continues to underestimate AMVUTTRA®’s revenue potential. They opine that increasing diagnosis rates, treatment adoption as well as market penetration for ATTR-CM can result in significant long-term returns. As per the analysts, the drug’s market penetration and treatment rates can be a significant driver for Alnylam Pharmaceuticals, Inc. (NADDAQ:ALNY)’s stock. Notably, 2024 demonstrated healthy execution for Alnylam Pharmaceuticals, Inc. (NADDAQ:ALNY), generating product revenues of more than $1.6 billion, implying 33% YoY growth.
Fidelity Investments, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:
“Lastly, not holding biopharmaceutical firm Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) (+63%) also hurt. The stock was range-bound until June 24, when it surged on news that the maker of RNA interference therapeutics achieved favorable top-line results in a late-stage clinical trial for its cardiovascular treatment, vutrisiran. Management noted the drug’s potential to address the needs of patients with a steadily progressive, debilitating and ultimately fatal disease.”
9. Moderna, Inc. (NASDAQ:MRNA)
5-Year Revenue Growth: ~122.01%
Number of Billionaire Investors: 10
Number of Hedge Funds: 44
Moderna, Inc. (NASDAQ:MRNA) is a leader in the creation of the field of messenger RNA (mRNA) medicine. The company’s pipeline extends well beyond its COVID-19 vaccine, spanning across potential therapies and preventive measures. Moderna, Inc. (NASDAQ:MRNA) has announced that the Australian Therapeutic Goods Administration (TGA) approved mRESVIA® (mRNA-1345), which is an mRNA respiratory syncytial virus (RSV) vaccine, to prevent lower respiratory tract disease caused by RSV infection in adults aged 60 years and older. Notably, mRESVIA’s approval is a significant achievement as it is the first mRNA vaccine in Australia that is approved for use against a disease beyond COVID-19.
The company has received marketing authorizations for its RSV vaccine in the US, the European Union, Canada, the United Arab Emirates, Qatar, Taiwan, and the United Kingdom. It has submitted regulatory applications in other markets worldwide. To provide a brief context, RSV is a highly contagious respiratory virus causing a substantial burden of disease, mainly in older adults. In 2025, Moderna, Inc. (NASDAQ:MRNA) remains focused on fueling sales and expanding cost efficiencies throughout the business. By 2025 end, it aims to remove ~$1 billion in costs. With robust momentum in its late-stage pipeline, Moderna, Inc. (NASDAQ:MRNA) expects multiple approvals starting this year, together with key Phase 3 readouts aiding its long-term growth.
8. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
5-Year Revenue Growth: ~21.5%
Number of Billionaire Investors: 13
Number of Hedge Funds: 68
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a global biotechnology company that is engaged in discovering and developing small-molecule drugs for the treatment of serious diseases. Leerink Partners analyst David Risinger reiterated the bullish stance on the company’s stock, providing a “Buy” rating. The rating is backed by factors demonstrating the company’s potential in the outpatient market. As per the analyst, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s recently-approved NaV1.8 inhibitor, JOURNAVX, can gain significant traction in the outpatient setting. Notably, on January 30, the FDA approved JOURNAVX for the treatment of adults with moderate-to-severe acute pain.
The analyst opines that the outpatient market offers a strong opportunity for JOURNAVX, mainly with patients transitioning from hospital care to home care. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s strategic initiatives have been designed to improve patient access and fuel early adoption of JOURNAVX. To provide a brief context, JOURNAVX is a first-in-class, selective, non-opioid NaV1.8 pain signal inhibitor. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) has been advancing a portfolio of selective pain signal inhibitors with the potential to offer effective pain relief without the limitations of opioids and other available medicines.
Parnassus Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“In the Health Care sector, we added drugmaker Eli Lilly, which has an exceptional GLP-1 franchise and a strong track record of innovation, and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). Vertex is a high-quality biotech company run by a strong management team that has made a promising acquisition and advanced its diabetes pipeline. The developments gave us confidence that Vertex’s innovative approach and high-quality management team will continue to achieve positive clinical outcomes and strengthen its competitive advantage.”
7. Insmed Incorporated (NASDAQ:INSM)
5-Year Revenue Growth: ~21.6%
Number of Billionaire Investors: 14
Number of Hedge Funds: 72
Insmed Incorporated (NASDAQ:INSM) develops and commercializes therapies for patients with serious and rare diseases. Analyst Andrew Fein from H.C. Wainwright reiterated a “Buy” rating on the company’s stock with the price objective of $90.00. The analyst’s rating is backed by a combination of factors demonstrating the company’s growth potential and market position. As per the analyst, looking ahead, the potential market for brensocatib in treating Chronic Rhinosinusitis without Nasal Polyps (CRSsNP) provides a growth opportunity. Notably, the Phase 2b BiRCh study of brensocatib in patients with chronic rhinosinusitis without nasal polyps (CRSsNP) remains on track to report topline results by 2025 end.
Insmed Incorporated (NASDAQ:INSM)’s success throughout all the areas of business in 2024—mainly in the delivery of positive data from the landmark Phase 3 ASPEN study of brensocatib in bronchiectasis—placed it to potentially reach several other patients suffering from serious diseases and resulted in strong value creation. Notably, Brensocatib can become the first and only approved treatment for bronchiectasis and the first in a new class of medicines called dipeptidyl peptidase 1 (DPP1) inhibitors for treating neutrophil-mediated diseases.
Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“We added to the position in Insmed Incorporated (NASDAQ:INSM), a biopharmaceutical company with three lead drugs that we believe could collectively generate over $8 billion of peak sales. The company expects to launch Brensocatib for non-cystic fibrosis bronchiectasis (NCFBE) in 2025. In a Phase 3 clinical trial, the drug achieved a 20% reduction in pulmonary exacerbations and an improvement in lung function. We think there could be as many as 500,000 NCFBE patients in the U.S. and that the disease is widely underdiagnosed (or rather, mis-diagnosed as asthma/COPD) given there are no approved treatments. In addition, brensocatib is a pipeline in a product. It’s a DPP1 inhibitor that is very potent against neutrophil serine proteases. Neutrophil serine protease activity is key in the cycle of inflammation and lung damage in bronchiectasis and is also known to play an important role in chronic rhinosinusitis without nasal polyps. In addition, another drug, Arikayce is on-market to treat refractory MAC lung disease and will likely get a front-line label with Phase 3 data expected in 2025. A third drug candidate, TPIP, is in the early stage but shows impressive efficacy/safety in PAH/PH-ILD and could be a best-in-class option.”
6. Palo Alto Networks, Inc. (NASDAQ:PANW)
5-Year Revenue Growth: ~22.3%
Number of Billionaire Investors: 14
Number of Hedge Funds: 83
Palo Alto Networks, Inc. (NASDAQ:PANW) offers cybersecurity solutions. Stifel analysts maintained a “Buy” rating on the company’s stock and a price objective of $225.00. The analysts remain optimistic in Palo Alto Networks, Inc. (NASDAQ:PANW)’s positioning as a platform consolidator in the broader cybersecurity industry. They highlighted its growing AI capabilities throughout the product stack as a strong opportunity. Overall, the firm’s insights exhibited a stable outlook for the company, aiding the positive stance.
Palo Alto Networks, Inc. (NASDAQ:PANW)’s Cortex platform, which consists of AI-powered security operations, caters to the increasing need for advanced threat detection and response capabilities. With companies deploying more AI systems, there happens to be a growing need to secure the environments. The company can use its expertise to establish specialized security solutions for AI infrastructure. Through its focus on AI security, Palo Alto Networks, Inc. (NASDAQ:PANW) can develop itself as a leader in the emerging field, fueling innovation as well as capturing a healthy share of the growing market segment.
In Q2 2025, the company’s healthy business performance was aided by customers adopting technology driven by the imperative of AI, which includes cloud investment and infrastructure modernization. As the company drives leverage from its scale and witnesses benefits from AI-related efficiency initiatives, it delivered profitable growth. For Q3 2025, Palo Alto Networks, Inc. (NASDAQ:PANW) expects next-generation security ARR of $5.03 billion – $5.08 billion, implying YoY growth of 33% – 34%.
5. Palantir Technologies Inc. (NASDAQ:PLTR)
5-Year Revenue Growth: ~31.01%
Number of Billionaire Investors: 16
Number of Hedge Funds: 64
Palantir Technologies Inc. (NASDAQ:PLTR) is engaged in building and deploying software platforms for the intelligence community to assist in counterterrorism investigations and operations. The company’s Artificial Intelligence Platform (AIP) can be a game-changer in enterprise AI adoption. Its capability to integrate, manage, and secure data while, at the same time, offering AI-powered insights places it well as a comprehensive solution for organizations that focus on leveraging AI throughout operations. Palantir Technologies Inc. (NASDAQ:PLTR)’s success in implementing AIP throughout industries, such as healthcare, retail, manufacturing, and supply chain, exhibits its versatility as well as its potential for significant adoption.
Palantir Technologies Inc. (NASDAQ:PLTR)’s emphasis on interoperability and ability to replace homegrown or greenfield offerings with AI-integrated workflows can place it as a critical player in the broader enterprise AI ecosystem. With the platform continuing to evolve and expand its capabilities, it can act as a critical tool for organizations that seek to harness the power of AI and data analytics. As the companies continue to recognize the need for AI-driven decision-making and operational efficiency, Palantir Technologies Inc. (NASDAQ:PLTR)’s AIP can play a critical role in ramping up AI adoption throughout sectors.
Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Two software stocks that the Fund did not own, Palantir Technologies Inc. (NASDAQ:PLTR) and AppLovin Corporation, each gained more than 100% and accounted for 52% of the Benchmark’s gain during the quarter. At year end 2024, Palantir was valued at approximately 200 times its expected 2024 earnings, while AppLovin was valued at 80 times. The market cap of each exceeded $100 billion, and the two stocks represented nearly 8% of the Index. Neither company met our criteria for investment. The total impact on relative performance from Palantir and AppLovin was about 7 times higher than we have seen historically for two securities that are unique to the Benchmark, showing just how unparalleled the event was and something that we believe is unlikely to be repeated.”
4. Datadog, Inc. (NASDAQ:DDOG)
5-Year Revenue Growth: ~49.2%
Number of Billionaire Investors: 17
Number of Hedge Funds: 83
Datadog, Inc. (NASDAQ:DDOG) operates an observability and security platform for cloud applications. Bank of America Securities analyst Koji Ikeda reiterated the bullish stance on the company’s stock, providing a “Buy” rating. The rating is backed by factors highlighting the company’s ability to innovate and expand its product offerings. Datadog, Inc. (NASDAQ:DDOG)’s capability to develop as well as scale new products, including infrastructure monitoring and application performance monitoring, remains a critical strength. This adaptability and innovation can fuel revenue growth, says Ikeda.
Furthermore, the analyst highlighted the promising growth potential of Datadog, Inc. (NASDAQ:DDOG)’s Flex Logs, which provide a cost-effective solution for data storage and processing. The product can be a core growth pillar because of its appeal to a broad customer base, says Ikeda. Also, the company’s diverse product portfolio can contribute significantly to its growth. Datadog, Inc. (NASDAQ:DDOG) remains well-placed to benefit from the strong growth in AI and cloud adoption. As companies remain focused on integrating AI into their operations, the demand for sophisticated monitoring and observability tools can grow.
Parnassus Investments, an investment management company, released a Q4 2024 investor letter. Here is what the fund said:
“We also added several new positions, including two in Information Technology: Atlassian, a maker of innovative software that allows IT developers and other employees to seamlessly collaborate on complex projects, and Datadog, Inc. (NASDAQ:DDOG), a dominant cloud monitoring platform.
Datadog, a dominant cloud monitoring platform, should have outsized growth due to its category leadership, sticky product suite, best-in-class product innovation and highly regarded management team. We believe the market has misinterpreted cyclical headwinds, such as reductions in IT spending, as secular trends, and we see Datadog benefiting from growth in Cloud Infrastructure-as-a-Service.”
3. AppLovin Corporation (NASDAQ:APP)
5-Year Revenue Growth: ~36.4%
Number of Billionaire Investors: 17
Number of Hedge Funds: 95
AppLovin Corporation (NASDAQ:APP) is engaged in building a software-based platform for advertisers in a bid to enhance the marketing and monetization of their content. Citi analysts upheld a “Buy” rating with a price objective of $600.00 on the company’s shares after its recent interest in acquiring TikTok’s assets outside of China. On April 3, 2025, AppLovin Corporation (NASDAQ:APP) confirmed that it has indicated interest to the President of the United States to explore a purchase of TikTok in all markets outside of China. While the indication of interest is preliminary, and there can be no assurance that a transaction will proceed, Citi analysts expect numerous strategic advantages if it proceeds.
The addition of TikTok could potentially accelerate AppLovin Corporation (NASDAQ:APP)’s expansion into non-gaming advertising categories. Also, the access to TikTok’s data can improve the company’s proprietary machine learning model, AXON. Owning the advertising inventory can also reduce any AdTech discount, potentially enhancing its valuation multiples. For Q1 2025, AppLovin Corporation (NASDAQ:APP) expects advertising revenue in the range of $1,030 million – $1,050 million and total revenue of between $1,355 million – $1,385 million. Total adjusted EBITDA is expected to be between $855 million – $885 million.
Sands Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“AppLovin Corporation (NASDAQ:APP) is one of the leading providers of advertising solutions for mobile game developers. The business aggregates advertising inventory for mobile gaming, offering a suite of products to track advertising performance to optimize distribution and monetization. The company has a dominant position in mobile ad mediation, as well as a strong position on the demand side. Since the launch of Axon 2.0, its artificial intelligence-based advertising model, AppLovin has begun fine-tuning its large-language model for ecommerce, receiving strong early feedback from ecommerce advertisers. In our view, this provides an opportunity for the business to expand outside its core gaming vertical to ecommerce and aggregate demand from nongaming applications. While this opportunity is early, the unconstrained nature of performance advertising provides upside to both the magnitude and duration of growth that AppLovin could sustain if successful.”
2. ServiceNow, Inc. (NYSE:NOW)
5-Year Revenue Growth: ~25.9%
Number of Billionaire Investors: 19
Number of Hedge Funds: 110
ServiceNow, Inc. (NYSE:NOW) offers a cloud-based solution for digital workflows. TD Cowen analysts maintained a “Buy’’ rating on the company’s stock, with a price objective of $1,300.00. The firm’s analysts highlighted the company’s announcement to acquire the AI company, Moveworks. The acquisition is expected to combine ServiceNow, Inc. (NYSE:NOW)’s agentic AI and automation strengths with Moveworks’ front-end AI assistant and enterprise search technology in a bid to unlock new experiences for every employee. With Moveworks’ acquisition, the company is expected to take another giant leap forward in agentic AI-powered business transformation.
With businesses seeking AI-powered solutions in a bid to improve efficiency and decision-making, ServiceNow, Inc. (NYSE:NOW)’s expanded AI capabilities can fuel strong growth and market share gains. Its healthy position in workflow automation offers a robust foundation for integrating AI throughout the product portfolio. This can result in increased customer adoption, higher-value contracts as well as expansion into new market segments, ramping up ServiceNow, Inc. (NYSE:NOW)’s revenue growth and profitability.
Sands Capital, an investment management company, published its Q4 2024 investor letter. Here is what the fund said:
“ServiceNow, Inc. (NYSE:NOW) shares advanced following its third-quarter business results, which revealed impressive execution at scale across the company’s product suite.
The business exceeded both top- and bottom-line expectations, with subscription revenue growing 22 percent in constant currency and adjusted operating margins expanding to 31 percent. Momentum continues in its Pro+ generative artificial intelligence (AI) product, which we estimate is generating nearly $100 million—a roughly 200 percent increase relative to the prior quarter. Outside of AI, momentum was broad across products and customer segments.
Over our five-year horizon, we expect ServiceNow to sustain over 20 percent top-line growth with incremental upside from continued progress in its AI-enabled products. We view its durable growth fueled by a broad product suite, paired with AI-related upside, as favorable relative to peers that trade at comparable valuations with weaker platform opportunities.”
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
5-Year Revenue Growth: ~22.02%
Number of Billionaire Investors: 30
Number of Hedge Funds: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is engaged in manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices. The company’s dominant position in the semiconductor industry is primarily due to its technological leadership. It has consistently been a frontrunner at developing and implementing advanced manufacturing processes, enabling it to maintain a competitive edge. AI has emerged as a critical growth driver for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), with healthy performance anticipated to continue into 2025. Overall, the elevated demand for AI-related chips resulted in a surge in orders for the company’s most advanced manufacturing processes.
The growth in the AI industry had a favorable impact on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s other business segments. The demand for high-performance computing chips, which are used in data centers and AI applications, continues to grow significantly, further cementing its market position. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s business in Q4 2024 was aided by healthy demand for its industry-leading 3nm and 5nm technologies. Sands Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) third-quarter 2024 results and guidance showcased strong continued demand for artificial intelligence (AI) chips. Revenue increased by 29 percent, and earnings saw a 54 percent rise year-over-year. Gross margins were at their highest since 2022, bolstered by price hikes and record utilization at both the 3 nanometer (nm) and 5nm nodes. TSMC’s full-year revenue outlook was revised upward from 25 percent to 30 percent growth. The company also anticipates higher capital expenditure in 2025, a leading indicator for revenue.
Meanwhile, TSMC’s competitive position within the leading-edge chip fabrication industry has improved. The company noted that demand for its next-generation 2nm (N2) node is considerably higher than for its predecessor, N3. Additionally, TSMC has more capacity for N2 than N3. This situation contrasts with Intel and Samsung, which both recently disclosed struggles in ramping up their leading-edge nodes. Together, Intel and Samsung account for approximately $25 billion of foundry revenue, which could potentially migrate to TSMC over time…” (Click here to read the full text)
While we acknowledge the potential of TSM as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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