In this article we will look at the 12 Best Long-Term Growth Stocks to Buy Now.
Expectations Regarding Fed’s Rate Cuts in 2025
Released on Friday, February 7, the January jobs report showed resilience in the labor market with higher-than-expected wage growth. December’s monthly job gains also showed an upward revision, highlighting that the US labor market ended 2024 in a better position than previously reported. Economists are thus of the opinion that the Federal Reserve may not cut rates in the near future. Consequently, this increases pressure on inflation data to cool down before the central bank considers slashing borrowing costs.
On January 30, Jeffrey Gundlach, CEO of DoubleLine Capital, appeared on CNBC’s “Closing Bell” to discuss the stock market and the Fed’s decision to leave rates unchanged. Sticking to the opinion he gave in December, Gundlach was of the view that 2025 would bring a maximum of two rate cuts by the Fed. He reiterated that he was not predicting two cuts but that two would be the maximum number attained in 2025, keeping one rate cut as the base case for the year. The unemployment rate went up for several consecutive months before ticking down, which Gundlach thinks is a matter of deep solace for the chair of the Federal Reserve, Jerome Powell.
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What Does the 2025 Outlook for the Stock Market Look Like?
On February 10, Mary Ann Bartels, Sanctuary Wealth’s chief investment strategist, appeared on CNBC to discuss the 2025 outlook for the stock market. She showed bullish sentiment towards the market, particularly due to strong earnings growth. Comparing the current environment to previous periods of innovation, such as the 1920s and the 1990s, Bartels highlighted the role of robotics, AI, and Web3 in driving long-term growth in the present.
She noted that companies today fund investments with cash and equity rather than excessive leverage, unlike the 1990s. Her estimates showed that the S&P could reach 7,200 to 7,400 this year and 10,000 to 13,000 by the decade’s end, as she expects the bull market to extend through 2029 to 2030.
With these trends in view, let’s look at the 12 best long-term growth stocks to buy now.
Stock market charts. Photo by Kaboompics.com on Pexels
Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of 20 growth stocks. We checked their 5-year revenue growth (at least above 15%) and then selected the top 12 most popular stocks among elite hedge funds as of fiscal Q3 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? 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 Long-Term Growth Stocks to Buy Now
12. Tesla, Inc. (NASDAQ:TSLA)
5-Year Revenue Growth: 31.78%
Number of Hedge Funds: 99
Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells high-performance electric vehicles and energy generation and storage systems. It operates through two segments: energy generation and storage and automotive. However, the company isn’t merely an automotive manufacturer; investors regard it as a technology company due to its other projects, most of which feature AI.
These projects include its humanoid robot line, Optimus, and its autonomous vehicle fleet, Cybercabs. In Tesla, Inc.’s (NASDAQ:TSLA) fiscal Q4 2024 earnings call, CEO Elon Musk described Optimus as holding the potential to generate over $10 trillion in revenue. Since Musk has aligned himself with Trump’s administration, the stock price has risen around 70% since the US presidential election, which is expected to bode well for the company in the coming months as well.
Tesla, Inc. (NASDAQ:TSLA) plans to begin selling Optimus robots by 2026. It also has plans to build a ride-hailing network for Cybercabs, which operate without steering wheels or pedals. Since these cabs do not require a human driver, they can operate round the clock and potentially generate a high-profit margin revenue stream for the company. Tesla, Inc. (NASDAQ:TSLA) ranks 12th on our list.
Analyst Andy Swan from LikeFolio explained his bullish thesis on Tesla, Inc. (NASDAQ:TSLA) in a latest program on Schwab Network and said the following about the company in his “infinitely long” bullish position” on the EV maker:
“I think you can just look at the fact Elon Musk bet very big on this election and he won. I think that is, you know, there’s good reason to think he will continue to win with this new administration in place, and that is a deregulated environment that allows not just the AI part of things but also the full self-driving features that Tesla has rolled out and the path to autonomous vehicles, the autonomous taxis rolling out. I think it’s just gotten a lot clearer with a Trump administration rather than one that’s a little more heavy-handed from a regulation side.
As far as LikeFolio data goes, we’re seeing Tesla kind of buck what everybody thought was happening, which is everybody thought that Tesla was getting less popular via its founder or not its founder, but its CEO’s political takes. What we’re seeing is that web visits are up year-over-year, app usage is up year-over-year considerably, and we look at the app usage of Tesla as a really kind of cool metric in terms of Tesla being a viral kind of word-of-mouth product. Because what Tesla’s integrated into the app are some really cool features that pretty much no other car in the world has, such as the ability for the car to come pick you up from an empty parking spot to the door of the restaurant that you’re just leaving. So, that type of word-of-mouth viral type of feature set in the app is starting to grow in usage, and that means more and more people getting exposed to Tesla. So, we maintain our multi-e, you know, infinitely long bullish position on Tesla.”
11. Eli Lilly and Company (NYSE:LLY)
5-Year Revenue Growth: 15.08%
Number of Hedge Funds: 106
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies. Investors are bullish on Eli Lilly and Company (NYSE:LLY) due to its in-demand GLP-1 drugs, used to treat diabetes and obesity, which are still in their early growth stages, and the company’s strong financials.
The company reported a 32% revenue growth in fiscal 2024 compared to fiscal 2023, exceeding its first-time guidance by $4 billion. It also made substantial progress across its strategic deliverables in fiscal Q4 2024, with revenue growing by 45% in the quarter, supported by a strong uptake of its Mounjaro and Zepbound drugs. Eli Lilly and Company (NYSE:LLY) also saw solid performance across immunology, oncology, and neuroscience.
On February 10, the company announced a collaboration with AdvanCell to advance cancer treatment through targeted alpha therapies. By combining Eli Lilly and Company’s (NYSE:LLY) expertise in drug manufacturing with AdvanCell’s Pb-212 production technology and infrastructure, the collaboration aims to expedite clinical progress for innovative radiopharmaceuticals. This is expected to be a significant opportunity for the company to further strengthen its cancer treatment portfolio and explore Pb-212-based therapies.
Aristotle Atlantic Partners, LLC highlighted LLY in its Q4 2024 investor letter. Here is what the firm has to say:
“Eli Lilly and Company (NYSE:LLY) contributed to performance in the fourth quarter. While shares underperformed, our underweight position versus the benchmark resulted in a positive contribution to relative returns. Lilly shares were weak following an uncharacteristic third-quarter earnings miss driven by softer-than-expected sales of its blockbuster diabetes and obesity drugs. The company blamed this partly on wholesaler destocking. Lilly reinforced its view that end demand for the drugs remains strong.
10. Advanced Micro Devices, Inc. (NASDAQ:AMD)
5-Year Revenue Growth: 30.82%
Number of Hedge Funds: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing, visualization technologies, and graphics. The company reported a 24% year-over-year revenue growth in fiscal Q4 2024 to a record $7.7 billion. This growth was attributed to a 69% growth in data center and a 58% growth in client segments.
Annual revenue for fiscal 2024 grew by 14% to $25.8 billion, as the company’s client segment revenue grew by 52% and data center revenue nearly doubled. The company thus has a strong model of profitability. Looking into 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) continues to see clear opportunities for continued growth based on the strength of its product portfolio and growing demand for high-performance and adaptive computing.
According to S&P Global, Advanced Micro Devices, Inc. (NASDAQ:AMD) is positioned for considerable growth and margin expansion due to the positive AI industry outlook and strong momentum for the company’s AI products. It recently launched its next-generation EPYC Turin server CPU, which is expected to further solidify its data center market position. The company ranks tenth on our list of the best long-term growth stocks to buy now.
9. Alibaba Group Holding Limited (NYSE:BABA)
5-Year Revenue Growth: 16.68%
Number of Hedge Funds: 115
Alibaba Group Holding Limited (NYSE:BABA) manages and provides technology infrastructure and marketing platforms. It operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others segments.
The state of China’s economy has a significant effect on Alibaba Group Holding Limited’s (NYSE:BABA) e-commerce business. Since the country’s retail sales have been growing every month for two consecutive years on a year-over-year basis, the current scenario in China is anticipated to bode well for the company. Alibaba Group Holding Limited (NYSE:BABA) also has a strong balance sheet and capital structure that lends significant operational flexibility.
The company has also jumped on the AI bandwagon and unveiled its model Qwen 2.5-Max days after DeepSeek’s release. Thus, it holds a long-term growth opportunity, as its AI initiatives may be a significant growth engine. It ranks ninth on our list of the top long-term growth stocks to buy now.
8. Salesforce, Inc. (NYSE:CRM)
5-Year Revenue Growth: 18.60%
Number of Hedge Funds: 116
Salesforce, Inc. (NYSE:CRM) designs and develops cloud-based enterprise software for customer relationship management. Its solutions encompass customer service and support, sales force automation, digital commerce, marketing automation, collaboration, community management, industry-specific solutions, and salesforce platforms. It also offers training, guidance, support, and advisory services.
Analysts are bullish on the stock because of Agentforce, which presents a significant opportunity for the company to capitalize on the elevated demand for AI-powered customer support solutions. Agentforce is an autonomous, proactive AI application that offers specialized support to customers and employees. Since the platform integrates generative AI agents into business workflows, Salesforce, Inc. (NYSE:CRM) holds a strong position in this rapidly evolving market.
The company is taking steps to further strengthen its AI and data protection capabilities, such as the 2024 acquisition of Own Company. The strategic move coincides with the market trends around growing enterprise priorities associated with security and automation. Its median price target of $327.20 implies an upside of 26.83% from current levels.
Montaka Global Investments, an investment management company, said the following about the company in its Q4 2024 investor letter:
“There are multiple structural trends in the enterprise software space, including (i) the ongoing cloud migrations and digital transformations of enterprises, and (ii) the infusion of AI into software applications.
While the former remains in its early innings (80-85% of enterprise workloads still reside ‘on-premise’ – many of which will ultimately move to public clouds), the latter remains in its infancy.
Given all the hype of late, it’s hard to fathom that large-scale deployments of AI-based enterprise applications have barely even started. It’s all still to come. And we believe 2025 will be the first year that we really start to see meaningful deployments and adoption of these kinds of applications.
Consider another of our top 10 holdings, Salesforce, for example. Its revenue growth is at a cyclical low. Indeed, at just +8% per annum, as reported in the company’s most recent quarter, its rate of revenue growth has never been lower.
But in 2025, not only will price increases that were announced two years ago boost Salesforce, Inc.’s (NYSE:CRM) revenue growth, but the year will also mark the early stages of adoption of the company’s new ‘Agentforce’ (released only weeks ago). This is a new platform that lets businesses build and deploy their own custom AI agents to automate tasks, improve efficiency, and enhance customer experiences…” (Click here to read the full text)
7. Broadcom Inc. (NASDAQ:AVGO)
5-Year Revenue Growth: 17.94%
Number of Hedge Funds: 128
Broadcom Inc. (NASDAQ:AVGO) is a leading multinational technology company specializing in semiconductor and infrastructure software products. In fiscal Q4 2024, the company reported a 51% year-over-year revenue increase, reaching $14.05 billion. Its adjusted earnings per share also grew by 28% to $1.42. The company expects this momentum to continue, projecting revenues of $14.6 billion in fiscal Q1 2025.
Broadcom Inc. (NASDAQ:AVGO) has also estimated considerable growth in its AI-related revenue, projecting a serviceable addressable market of $60–90 billion by fiscal 2027, driven primarily through partnerships with major hyperscalers like Google, Meta Platforms, and ByteDance.
One of the company’s most substantial growth opportunities comes from its application-specific integrated circuits (ASICs) used in AI data center infrastructure. Prominent tech companies across the globe employ Broadcom Inc.’s (NASDAQ:AVGO) chips for AI needs, and an estimated increase in spending may boost further demand.
Aristotle Atlantic Core Equity Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) contributed to performance in the fourth quarter as its third-quarter results demonstrated continuing strength for its AI networking and custom accelerator semiconductor business. The company also gave long-term guidance for the service addressable market (SAM) opportunity for its AI-related business, indicating a market opportunity of $60 billion to $90 billion, including contributions from its current three customers. This long-term outlook for AI semiconductor content exceeded investor expectations. Broadcom’s quarterly results also showed the company is ahead on its VMware integration timeline to achieve $8.5 billion in EBITDA, which will support long-term gross and operating margin expansion for the company.”
6. Uber Technologies, Inc. (NYSE:UBER)
5-Year Revenue Growth: 27.60%
Number of Hedge Funds: 136
Uber Technologies, Inc. (NYSE:UBER) is a multinational transportation company that offers ride-hailing services, courier services, food delivery, and freight services. The company is increasingly employing AI to strengthen its autonomous vehicles and rider safety. It announced a strategic partnership with Nvidia in early 2025 to boost the integration of AI technology into self-driving cars.
Uber Technologies, Inc. (NYSE:UBER) plans to develop AI models using Nvidia’s Cosmos platform and DGX cloud. The company is also making moves in the robotaxi and autonomous vehicles sector. It announced that customers in Austin, Texas would be able to order an autonomous vehicle through its platform in March as part of a collaboration with Alphabet’s Waymo. The company ranks sixth on our list of the 12 best long-term growth stocks to buy now.
Ithaka US Growth Strategy stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its Q4 2024 investor letter:
“Uber Technologies, Inc. (NYSE:UBER) employs a marketplace-based technology platform used to match drivers and their vehicles with individuals, products, and packages moving from point A to point B. The company offers its ~6M independent contractors (drivers) access to its 130M monthly active users (riders), providing both parties real-time access to logistics services. Uber’s business consists of three segments: Mobility, Delivery, and Freight. These businesses combined for ~$140B in annual bookings across 9.5B trips in 2023. Uber’s stock suffered from the perceived risks autonomous vehicles would pose to the company’s base business. This fear intensified when Donald Trump won the 2024 election, as investors anticipated that one of Trump’s key allies, Tesla CEO Elon Musk, would leverage his burgeoning influence to accelerate the implementation of national autonomous driving regulations.”
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
5-Year Revenue Growth: 22.02%
Number of Hedge Funds: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world. Some of its prominent customers include semiconductor companies that outsource all or a part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more.
Demand for the company’s services is one of the primary reasons investors are bullish on the stock. It has plans to grow its capital expenditures (capex) to between $38 billion and $42 billion in 2025, which translates to an annual growth of 28% to 41%. It reported a 39% growth in its fiscal Q4 2024 revenue in the company’s local currency, New Taiwan dollars. It also reported a 57% EPS growth, exceeding analyst estimates in both measures. Its high-performance computing (HPC) platform, which includes AI chips, grew by 19%, accounting for around 53% of the total company revenue.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) also pays a dividend, unlike most companies in the semiconductor industry. Its dividend has grown by about 67% over the last 5 years. The company’s management estimates a revenue of $25 billion to $25.8 billion for fiscal Q1 2025. This translates to a 33% to 37% year-over-year growth, exceeding analyst estimates and reflecting continued optimism in its operations.
Wedgewood Partners stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was another top contributor to performance during the quarter and for the year. The Company’s earnings growth dramatically accelerated compared to last year as the Company’s wafer fabrication and packaging volumes soared in 2024. In addition, the Company customer prices rebounded in the face of more normalized capital expenditures. The Company maintains a near-monopoly in the fabrication of nearly every new AI accelerator brought to market over the past two years. They continue investing tens of billions to build and 7ill future capacity with orders for what seems to be insatiable hyperscale demand for accelerated computing. The stock ended the year trading at a consensus forward earnings multiple that is several points lower than large-cap growth benchmarks, despite the Company’s dominant position in the most important industry that is driving one of the largest technological shifts in a generation.”
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.”
3. Alphabet Inc. (NASDAQ:GOOG)
5-Year Revenue Growth: 16.68%
Number of Hedge Funds: 202
Alphabet Inc. (NASDAQ:GOOG) is a holding company with segments including Google Services, Google Cloud, and Other Bets. The Google Services segment operates various services and products, including Android, Google Maps, Google Play, Chrome, Search, and YouTube. It is the largest digital advertising company in the world, with the search engine Google holding approximately 90% global market share. In the US alone, Google has more than 75% market share for desktop and 95% for mobile searches, making it one of the most significant revenue drivers for the company.
Alphabet Inc. (NASDAQ:GOOG) also operates a successful cloud business, an autonomous vehicle unit called Waymo, and even sells devices. Fiscal Q4 2024 showed a 12% growth in overall revenue for the company, along with a 12.5% growth in search revenue. YouTube grew by 13.8%, while revenue from Google Cloud rose by around 30% to $12 billion. Analysts are bullish on the stock, and its median price target of $187.74 implies an upside of 11.86%.
Merion Road Capital Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG): We have held GOOG for a long time (since 2018) on the basis of its immense business quality paired with an undemanding valuation, improving treatment of minority shareholders, and multiple options for value creation. Recently we have seen Alphabet bashed for losing the AI race to now heralded for its progress. I remain excited about their prospects with several near-term, mid-term, and long-term tailwinds. Near-term, Google Cloud continues its rapid growth and their latest large language model, Gemini 2.0, appears to have made significant progress to better serve consumer needs and improve GOOG’s other product offerings. Mid-term, Waymo is on the cusp of becoming a real value driver for the company; there are abundant articles discussing Waymo stealing share from the ride-share economy and launching in new geographies. Long-term, GOOG’s recently announced quantum computing chip positions it well for a future (many, many years away) where computing process are fundamentally different than today. All of these options are embedded in a company that already has an established and dominant earnings stream.”
2. Meta Platforms, Inc. (NASDAQ:META)
5-Year Revenue Growth: 18.40%
Number of Hedge Funds: 235
Meta Platforms, Inc. (NASDAQ:META) develops social media applications and operates through the Family of Apps (FoA) and Reality Labs (RL) segments. The Family of Apps segment covers Instagram, Facebook, WhatsApp, Messenger, and other services, while the Reality Labs segment encompasses mixed, augmented, and virtual reality-related software, hardware, and content.
The company reported a 22% revenue growth to $164.5 billion in fiscal 2024, while earnings grew by 60% year-over-year to $23.86 per share. Its operating income grew by 48% to $69.4 million, giving the company an operating margin of 42%. Meta Platforms, Inc.’s (NASDAQ:META) operating margin for fiscal Q4 2024 reached 48%, reflecting the company’s significant market power.
More than 98% of the company’s revenue comes from selling advertising slots on its social networks to businesses. It is employing AI to further expand its market share growth in the digital advertising space. This strategy is expected to prove profitable for the company, as the adoption of AI in marketing is anticipated to grow at a compound annual growth rate of 25% through 2030, according to Grand View Research. Meta Platforms, Inc. (NASDAQ:META) also announced that its capital expenditures for 2025 may reach up to $65 billion, reflecting a 60% growth over last year. Most of this capital is expected to go to the company’s AI infrastructure investments.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6-year holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
1. Amazon.com, Inc. (NASDAQ:AMZN)
5-Year Revenue Growth: 17.86%
Number of Hedge Funds: 286
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology company that provides online retail shopping services. It operates through the North America, International, and Amazon Web Services (AWS) segments. Its AWS segment covers global sales of storage, computers, databases, and other services for government agencies, academic institutions, startups, and enterprises.
Amazon.com, Inc.’s (NASDAQ:AMZN) e-commerce standing lends it a significant competitive advantage, as it holds nearly 38% of all e-commerce sales in the US. According to the Boston Consulting Group, e-commerce is expected to continue growing as a percentage of retail sales, reaching around 41% of global retail sales by 2027. This is anticipated to prove substantially beneficial for Amazon.com, Inc. (NASDAQ:AMZN).
The company is also investing heavily in AI. Its capital expenditures (capex) for 2025 are anticipated to be around $100 billion, a majority of which would go to AI. The company also said that falling AI inference expenses would fuel increased AI infrastructure spending.
Ariel Appreciation Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“During the quarter, we initiated three new investments, each in companies we have followed closely for a considerable time. At various points, we viewed them as missed opportunities; however, our experience with Mr. Market has taught us that patience often creates inevitable entry points. This quarter, some exciting opportunities presented themselves. The three investments are Amazon.com, Inc. (NASDAQ:AMZN), Diageo (NYSE: DEO), and Uber (NASDAQ: UBER). We will discuss each in detail below.
Amazon is one of the most widely followed companies in the world. While the “Magnificent 7” (of which Amazon is a key member) is often seen as a runaway freight train, we were able to purchase Amazon shares at prices last seen in 2021—three years ago. How is this possible if the “Mag7″ has been so dominant? We believe it largely reflects the increasing prevalence of narratives driving market sentiment…” (Click here to read the full text)
Overall, AMZN ranks first among the 12 best long-term growth stocks to buy now. While we acknowledge the potential of growth stocks, our conviction lies in the belief that 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 AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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