In this article, we will take a look at the 12 best growth stocks to buy and hold in 2025.
The Future of Rate Cuts in 2025
The latest data from the job market in the United States came out on Friday and that has made the future of rate cuts even more uncertain. Lauren Sanfilippo, senior investment strategist at Bank of America, joined Market Domination on Yahoo Finance to discuss her market thesis and how the easing cycle is expected to play out in 2025.
Sanfilippo believes that the market has been basing its decisions on the easing cycle, but the job data, which has been particularly good, has allowed investors to pivot their investment approach away from rate cuts. She added that she is not looking at more rate cuts this year and is expecting a hike amid inflation concerns. She suggested that the market must not overreact to one piece of data and wait for more data to come out before any decisions are made.
Speaking of the commencement of the easing cycle, Sanfilippo believes the Fed was in the right to start the much-awaited easing cycle. However, she did share her concerns about the 100 basis point rate cut being executed over a very short time. She added that while the job market is in good shape and inflation is not that much of a problem yet, the stock market’s performance may also be influenced because of yields and how stocks are “thinking about yields.” She also suggested that previously stocks have been very tolerant of higher yields, and is interested to see how it changes going forward.
Sanfilippo also shared her views on inflation and emphasized the importance of viewing the bigger picture more holistically. She added there is a much larger widening opportunity in the market but is waiting to see how the Q4 2024 earnings pan out.
The market may be uncertain, however, some stocks in the market have a promising outlook making them a solid buy. These stocks have been pouring into solid growth opportunities and are popular among analysts and investors. That said, let’s take a look at the 12 best growth stocks to buy and hold in 2025.
Stock market data on a laptop screen. Photo by Alesia Kozik
Our Methodology
We used Finviz to look for companies operating in growth sectors such as technology, financials (fintech), biotech, and communication services. We only focused on companies with a market cap of at least $2 billion and that gained more than 50% over the past 2 quarters. We then examined the analyst upside surrounding 25 stocks and picked the 12 stocks with the highest upside as of January 10, 2025. We have also included the hedge fund sentiment around each stock.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Best Growth Stocks to Buy and Hold in 2025
12. Coupang, Inc. (NYSE:CPNG)
Analyst Upside as of January 10, 2025: 39%
Number of Hedge Fund Holders: 56
Coupang, Inc. (NYSE:CPNG) is a technology company that provides retail, restaurant delivery, video streaming, and fintech services to customers around the world under brands Coupang, Coupang Eats, Coupang Play, and Farfetch. The online retail company sells beauty, skincare, snacks, electronics, and clothing items on its platform, Coupang Marketplace. The company has a strong e-commerce infrastructure, with over 100 unique fulfillment centers covering 47 million square feet.
The company leverages technology to predict unexpected spikes in demand, allowing it to meet customer demand no matter the conditions. In addition to that, Coupang’s (NYSE:CPNG) proprietary robots can manage and sort orders in seconds, without having to carry and lift items. The company is committed to making the jobs of employees easier with its automation technologies and interventions.
Its AI-powered management system is highly efficient, allowing CPNG to deliver cost savings, reduce wastage, and predict demand. This coupled with its solid financial performance over the past few months, makes it one of the best growth stocks to buy and hold in 2025.
Appalaches Capital stated the following regarding Coupang, Inc. (NYSE:CPNG) in its Q3 2024 investor letter:
“A new core holding of the portfolio that may appear confusing is Coupang, Inc. (NYSE:CPNG). Coupang mainly provides a first-party marketplace in South Korea and Taiwan that is similar to Amazon here in the U.S. Coupang additionally has other digital services such as Coupang Play (streaming), Coupang Eats (food delivery), and Coupang Pay (payments). Coupang has a dominant position in South Korean e-commerce, with nearly half of the population represented as an active customer on the platform. At first glance, the company appears marginally profitable and very expensive against current earnings, so it certainly appears to be an outlier against the rest of the portfolio.
A couple of months ago, I shared an article addressing this very subject. As a value investor, I aim to buy shares in businesses trading at a discount to their intrinsic value. This intrinsic value is simply the present value of future cash flows, which can be materially different from the cash flows of the business today. Clearly, I believe this is the case with Coupang…” (Click here to read the full text)
11. Uber Technologies, Inc. (NYSE:UBER)
Analyst Upside as of January 10, 2025: 39%
Number of Hedge Fund Holders: 136
Uber Technologies, Inc. (NYSE:UBER) is one of the best growth stocks to buy and hold in 2025. The ride-hailing company is expected to become a completely electric and zero-emission platform by 2040, which is a factor contributing to its position. As a result of this, Uber (NYSE:UBER) grew its gross bookings by nearly 16% in Q3 2024.
Over the past few months, the company has launched EV-only ride options to more markets, AI assistants to help drivers with EV-related questions, and mentorship programs. In 2025, UBER plans to transition hundreds and thousands of drivers to electric vehicles and intends to make 80% of restaurant deliveries more environmentally friendly by using recyclable packing options.
It is safe to say that Uber Technologies, Inc. (NYSE:UBER) is expected to benefit from the autonomous driving wave and the easing regulations, so it is no surprise that investors are bullish on the stock.
10. Alibaba Group Holding Limited (NYSE:BABA)
Analyst Upside as of January 10, 2025: 43%
Number of Hedge Fund Holders: 115
Alibaba Group Holding Limited (NYSE:BABA) is a technology and internet retail company that operates e-commerce sites that serve consumers and small business owners. In addition to e-commerce, Alibaba Group (NYSE:BABA) is also involved in cloud computing, logistics, digital media, and entertainment. Overall, the company’s combined e-commerce platforms are used by more than 800 million people worldwide.
For the quarter ending September 30, 2024, BABA logged $33.7 billion in revenue, growing by 5% year-over-year. Income from operations also grew by 5% to reach $5.02 billion during the third quarter of 2024. The company attributes its growing revenue to an improvement in the monetization of Taobao and Tmall Group, two of its online retail sites. The two platforms are poised for growth as the company signed crucial long-term collaborations with industry leaders.
While the company has a growing cloud business, driven by its developments in AI, Alibaba’s (NYSE:BABA) strength lies in the uniqueness and efficiency of its e-commerce platforms, making it one of the best growth stocks to buy and hold in 2025.
9. JD.com, Inc. (NASDAQ:JD)
Analyst Upside as of January 10, 2025: 44%
Number of Hedge Fund Holders: 75
JD.com, Inc. (NASDAQ:JD), commonly referred to as Jingdong, is one of the largest e-commerce companies in China. JD.com, Inc. (NASDAQ:JD) also provides services in the logistics, cloud, health, industrial, and property industries. The company has over 1,600 warehouses and currently operates in more than 200 countries and regions worldwide.
In the third quarter of 2024, JD.com, Inc. (NASDAQ:JD) shared a positive outlook on its profitability and improved customer sentiment. The company has powerful supply chain capabilities, contributing to its expanding market share in China. As a result, in the third quarter of 2024, JD saw a 5.1% increase in revenue, hinting at sustainable momentum in consumer demand.
Overall order volume and shipping frequency both grew by double digits during the quarter, emphasizing JD’s increasing position in the e-commerce industry. JD.com’s (NASDAQ:JD) value proposition lies in low prices, driven by subsidies, and a strong e-commerce ecosystem supported by its logistics and technological capabilities.
Ariel Investments’ Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its Q3 2024 investor letter:
“China-based E-commerce company, JD.com, Inc. (NASDAQ:JD) was the top contributor in the quarter as the People’s Bank of China’s (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company’s retail operations. Additionally, the company’s strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment, the company’s strategic positioning and supply chain efficiency improvements, we continue to like its long-term growth prospects.”
8. Micron Technology, Inc. (NASDAQ:MU)
Analyst Upside as of January 10, 2025: 46%
Number of Hedge Fund Holders: 107
Micron Technology, Inc. (NASDAQ:MU) ranks eighth on our list of the best growth stocks to buy and hold in 2025. Its primary offerings include memory and storage products for computers, consumer electronics, artificial intelligence use cases, servers, and automobiles. Over the past few months, the company has made significant progress on the AI front.
Earlier in October 2024, MU was added to NVIDIA’s recommended vendor list for its new data center SSDs, and in November, the company introduced the world’s fastest SSD, with efficiency ramped up to 67%. More recently, in the first week of January, the company introduced expansions to its memory and storage portfolio, emphasizing its commitment to innovation and improved performance.
Micron Technology, Inc. (NASDAQ:MU) is shifting its complete focus to meeting the demands of artificial intelligence and data center customers, making it a solid choice for investors in 2025 and beyond. Very recently on January 8, MU established a packaging facility in Singapore, an impressive feat in improving its standing in the industry.
7. PDD Holdings Inc. (NASDAQ:PDD)
Analyst Upside as of January 10, 2025: 49%
Number of Hedge Fund Holders: 78
PDD Holdings Inc. (NASDAQ:PDD) is a multinational e-commerce group that owns Temu and Pinduoduo, two online retail sites. Temu, known for its notoriously low-priced products and fast deliveries, is set to become one of the most used platforms in the world, with a 20% market share in its home country.
In the third quarter of 2024, PDD Holding’s total revenue reached $14.16 billion, a 44% increase year-over-year. It also generated an operating profit of $3.5 billion. The company attributes its growth in revenues to its online marketing and transaction services. Revenue from its online marketing segment alone reached $7.03 billion, up by 24% from the same quarter in 2023.
PDD Holdings (NASDAQ:PDD) boasts a solid growth opportunity as it expands its offerings to more countries across the globe. This explains why analysts are bullish on the stock and their median price target represents an upside of 49% from current levels.
6. Adobe Inc. (NASDAQ:ADBE)
Analyst Upside as of January 10, 2025: 49%
Number of Hedge Fund Holders: 123
Adobe Inc (NASDAQ:ADBE) has been disrupting the generative AI industry. Some of its major products include Adobe Firefly, Adobe Express, Acrobat AI Assistant, and Adobe GenStudio. The company’s journey to becoming a GenAI giant has been prominent over the last few quarters. Earlier in 2024, Adobe Inc (NASDAQ:ADBE) launched a digital asset management system and later in the year announced the general availability of Adobe Journey Optimizer B2B Edition on its Adobe Experience Cloud.
In October 2024, Adobe Inc (NASDAQ:ADBE) launched the Firefly Video Model in beta, expanding its family of creative generative AI models, safe for commercial use. Similarly, in December 2024, the company announced a partnership with Box, Inc. to shape the way digital media is created and used. With this new integration, users will be able to create the content they need within seconds using AI.
The company holds precedence in the creative industry because of its exemplary tools and features. In addition to that, investors are particularly interested to see how its investments in AI play out in 2025 and beyond. Analysts are also bullish on the stock and their median price target implies an upside of 49% from current levels.
Polen Capital’s Polen Focus Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q3 2024 investor letter:
“We added to several existing positions in the quarter including Adobe Inc. (NASDAQ:ADBE), Workday, Shopify, MSCI, and Paycom Software. We feel Adobe is poised for re-accelerating revenue and earnings growth partially due to the monetization of its Firefly GenAI product embedded in its creative software.”
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Analyst Upside as of January 10, 2025: 50%
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor and IT company that produces accelerators that are capable of managing complex AI workloads. Over the past few months, the company has unveiled new processors that can power the next generation of commercial PCs. Similarly, AMD also launched high-performance computing solutions to keep up with the AI computing era. Keeping up with the trajectory, on January 6, the company announced the launch of its first commercial Dell PCs backed by its high-performance AI processors.
In the third quarter of 2024, the company generated $6.8 billion in revenue, up by 18% year-over-year and 17% sequentially. During the same quarter, net income grew by a staggering 158% year-over-year and 191% sequentially. AMD attributes its growth to its data center products and ever-growing demand for its Ryzen Pc processors. The company eyes prominent growth in this segment and expects to make significant advances in its processor technology.
The company is emerging in the AI and technology sector as a leader in the production of accelerators and processors. Advanced Micro Devices, Inc. (NASDAQ:AMD) is a favorite among analysts and their median price target implies an upside of 50% from current levels.
4. uniQure N.V. (NASDAQ:QURE)
Analyst Upside as of January 10, 2025: 57%
Number of Hedge Fund Holders: 24
uniQure N.V. (NASDAQ:QURE) is an emerging leader in gene therapy. The company’s platform is focused on liver and nervous system disorders. Its modular platform sets it apart from its competitors as it promises significant cost savings and efficient mode of operations.
QURE boasts a solid growth opportunity, with its revenue growing by $0.8 million in Q3 2024 from the same quarter in 2023. The stock’s growth trajectory can also be explained by its liquidity situation, after having retired nearly $50 million of its outstanding debt, reducing annual interest expense by almost $5 million.
The company is garnering immense traction for its accelerated performance in drug approvals. In the last quarter of 2024 alone, uniQure N.V. (NASDAQ:QURE) has processed several approvals and announced trials for its novel drugs. Its remarkable performance on the drugs and financial front explains why 24 hedge funds held stakes in QURE at the close of Q3 2024.
3. MongoDB, Inc. (NASDAQ:MDB)
Analyst Upside as of January 10, 2025: 61%
Number of Hedge Fund Holders: 49
MongoDB, Inc. (NASDAQ:MDB) is a software company that develops and provides commercial support for the database engine, MongoDB. The data platform allows developers to commercialize their ideas as fast as possible using the company’s advanced expertise in data.
MongoDB 8.0, its latest release, offers 36% higher throughput, horizontal scaling, improved queryable encryption, and faster speed. Its popular AI platform, Atlas, is growing at such a rapid pace making it one of the most popular document databases in the world for developers. The unified platform offers unmatched capabilities in semantic search, the ability to build recommendation engines and design systems, detect changes in data, and provide context for generative AI applications.
In the third quarter of 2024, MongoDB, Inc. (NASDAQ:MDB) grew its total revenue by 22% and revenue from its platform, Atlas, by 26% year-over-year. Atlas, its proprietary AI data platform, is its unique selling point, and one of the primary contributors for it to be on our list.
2. MicroStrategy Incorporated (NASDAQ:MSTR)
Analyst Upside as of January 10, 2025: 66%
Number of Hedge Fund Holders: 25
MicroStrategy Incorporated (NASDAQ:MSTR) is a business intelligence company that provides business intelligence, mobile software, and cloud-based software services to businesses. The company is using AI to enhance its business intelligence offerings. The company offers convenient data visualization and advanced predictive analytics for all kinds of businesses. Some of its major clients include KFC, eBay, Crate&Barrel, Celio, Petco, Sony, and Pfizer.
Over the past 30 days alone, the company has forged partnerships, enhanced its position in the stock market, and optimized its offerings further. On January 9, for example, MicroStrategy Incorporated (NASDAQ:MSTR) formed a partnership with STACKIT to produce a sovereign data cloud for AI-backed business intelligence.
As the demand for AI-optimized operations grows, so will the need for companies like MSTR. This explains why analysts are bullish on the stock and their median price target implies an upside of 66%.
1. AST SpaceMobile, Inc. (NASDAQ:ASTS)
Analyst Upside as of January 10, 2025: 79%
Number of Hedge Fund Holders: 18
AST SpaceMobile, Inc. (NASDAQ:ASTS) ranks first on our list of the best growth stocks to buy and hold in 2025. The satellite designer and manufacturer is based in Texas, United States, with plans to connect mobile phones to the cellular broadband satellite networks, allowing people to go online from anywhere they want.
In 2024, the AST SpaceMobile, Inc. (NASDAQ:ASTS) launched and deployed its first five BlueBird satellites and also partnered with key companies like Google, Verizon, AT&T, and Vodafone. The company has secured these partnerships to ensure it provides 100% coverage in the United States. ASTS has also secured several awards for its revolutionary technologies and innovations over the past year, contributing to its popularity among investors.
The company is truly transforming the way people connect with the world through its capabilities in cellular connectivity. ASTS intends to target current mobile network operators, subscribers, and individuals who are residing in areas with little to no network access, and become a leader in the industry.
While we acknowledge the potential of ASTS to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ASTS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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