12 Best Long-Term Growth Stocks to Buy Now

4. NVIDIA Corporation (NASDAQ:NVDA)

5-Year Revenue Growth: 62.43%

Number of Hedge Funds: 193

NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures computer graphics processors, chipsets, and other multimedia software. It operates in the Compute & Networking and Graphics Processing Unit (GPU) segments. The company’s shares have grown by more than 22,000% in the past decade, and it now has a market cap of around $3 trillion. This makes it the third-largest company in the world.

It expects to continue this growth and profitability in the future, supported by products based on its new Blackwell GPU architecture. Although the release of Chinese DeepSeek, which claims to have developed an LLM through H800 chips, has caused some turbulence for the company, the demand for its newest chips isn’t facing drastic downfalls.

On February 6, Morgan Stanley analyst Joseph Moore reiterated that NVIDIA Corporation (NASDAQ:NVDA) remains a “top pick.” While DeepSeek has created “some headwinds around export controls and longer-term investment,” Moore expressed confidence in NVIDIA Corporation’s (NASDAQ:NVDA) ability to navigate these challenges. Its Hopper and Blackwell AI chips are both exhibiting strong demand, and the company’s data center customers remain committed to large-scale AI investments. It ranks fourth on our list.

Fred Alger Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. Shares contributed to performance during the quarter, driven by strong demand for its data center products, especially the Hopper H200 chips, which generated double-digit billions in revenue, marking the fastest product ramp in the company’s history. Management provided fiscal fourth-quarter revenue guidance above analyst estimates, along with resilient operating margins supported by robust demand and limited competition. In our view, Nvidia’s leadership in scaling AI infrastructure, including advancements in inference and test-time scaling (i.e., reasoning during inference), is driving adoption among enterprises and startups, providing continued demand for its high-performance chips and software solutions. As older-generation chips are repurposed for inference and new clusters are deployed, we believe Nvidia is well-positioned to capitalize on growing compute needs across AI applications.”