We recently published a list of 15 Best Fast Growth Stocks To Buy Right Now. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other best fast growth stocks to buy right now.
In the fourth quarter of 2024, the US Gross Domestic Product (GDP) expanded at an annual rate of 2.3%, slightly below market expectations of 2.7% and a deceleration from the 3.1% growth observed in the third quarter. This slowdown was primarily driven by declines in business investment and exports, partially offset by increased consumer and government spending. For the entire year, the economy grew by 2.8%, marginally less than the 2.9% growth recorded in 2023. Inflationary pressures persisted, with the price index for gross domestic purchases rising by 2.2% in the fourth quarter, up from 1.9% in the previous quarter.
Investor sentiment has been influenced by policy uncertainties stemming from the Trump administration’s rapid and sometimes unpredictable policy shifts. Actions on tariffs, immigration, and federal budget cuts have introduced volatility into the market, leading to concerns about potential inflationary pressures and slowed economic growth. David Kelly, Chief Global Strategist at JP Morgan Asset Management, highlighted that such uncertainties could dampen business investment and consumer confidence. This sentiment is reflected in recent Federal Reserve reports indicating a reduction in capital spending and a decline in small business investment expectations.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The combination of sluggish growth and persistent inflation has reignited fears of stagflation—a scenario characterized by stagnant economic growth coupled with high inflation. Trade policies, including tariffs on Chinese imports and plans for additional tariffs on various goods, have contributed to these concerns. While inflation remains below the peaks of the 1970s, ongoing trade tensions have raised the prospect of growth-impeding inflationary pressures. Investors are cautiously optimistic about stocks but are increasingly wary of potential stagflation risks.
Despite these challenges, growth stocks have demonstrated resilience. The S&P 500 index experienced its best week since late January, breaking a two-week losing streak. Analysts Jeff Blazek and Erik Knutzen of Neuberger Berman noted a shift in investor focus from inflation concerns to growth prospects, suggesting that expectations of economic expansion are now exerting a more significant influence on the market. This shift has been accompanied by strong performances in US value stocks, industrials, financials, and European equities.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
To come up with the 15 best fast growth stocks to buy right now, we went over multiple rankings on the internet to compile an initial list of fast growth stocks. We then examined the hedge fund sentiment of each stock and picked the most popular ones. 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).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is a designer and developer of graphics processing units, central processing units, and system-on-a-chip units. For fiscal 2024, revenue increased by 126% to $60.9 billion. GAAP earnings per diluted share rose 586% to $11.93, while non-GAAP earnings per diluted share grew 288% to $12.96. In February, the company announced that its Blackwell platform is now generally available in the cloud, offering advanced AI and computing capabilities. CoreWeave, an American-based cloud computing startup, has launched NVIDIA GB200 NVL72-based instances, becoming the first cloud service provider to make Blackwell accessible. These instances feature rack-scale NVIDIA NVLink across 72 Blackwell GPUs and 36 Grace CPUs, scaling up to 110,000 GPUs with NVIDIA Quantum-2 InfiniBand networking.
Overall, NVDA ranks 1st on our list of best fast growth stocks to buy right now. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
