Looking back over the past few years, we’ve seen the gains of stocks like Nvidia. But did you know that during market turbulence in 2022, Nvidia shares fell roughly 70% at one point? This volatility comes with the territory.
In this article, we’ll focus on six high-growth stocks to watch for 2025. But remember, growth stocks are not one-size-fits-all. Some may have high earnings or revenue growth, while others benefit from multiple expansions. Even value stocks can offer solid returns. So, make sure to read through the entire article to get the full picture.
Growth Stock #1: GE Vernova (GEV)
GE Vernova, with the ticker symbol GEV, was spun off from the original General Electric, and to say it was a success is an understatement. Companies do spin-offs to unlock potential that might not have been recognized under the umbrella of a larger corporation. In the case of GE Vernova, the spin-off has led to a meteoric rise.
Spun off on March 27, 2024, GE Vernova currently has a market cap of $106 billion. Since its IPO, shares have soared by 230%. This growth is impressive, considering that GE Vernova was just one piece of GE’s split, which also included GE Aerospace and General Electric.
GE Vernova is an energy company focused on generating, storing, and distributing electricity. One massive tailwind for the company is AI—not from a technology angle, but from an energy perspective. AI is incredibly powerful, and while there are debates about the costs of developing large language models, the energy consumption required to support AI capabilities is undeniable.
This demand for energy positions GE Vernova for significant growth. Analysts expect the company to grow by 150% in 2025, followed by 70% in 2026 and 40% in 2027. These numbers give the stock a forward P/E ratio of 62, which is high, but with projected growth of 10% annually, the PEG ratio is well below 1.
For high-growth stocks like GE Vernova, which may not be highly profitable yet, focusing on sales rather than earnings can provide a better picture. Currently, the company trades at a price-to-sales ratio of 2.9. Analysts rate the stock a strong buy, with an average 12-month price target of $440 per share—implying nearly 15% upside. Some recent upgrades have set price targets closer to $500, implying nearly 30% upside.
Growth Stock #2: Baidu (BIDU)
The second stock on our list is Baidu, ticker symbol BIDU. Based in China, Baidu is a company that some investors may hesitate to invest in due to its location. However, if you’re open to international investments, Baidu offers growth potential as the Chinese economy begins to recover from its post-pandemic slump.
In 2024, China’s economy grew by 5%, which is low by its historical standards, but signs of a turnaround are emerging. For example, Alibaba’s stock has risen nearly 40% recently, signaling renewed investor confidence.
Baidu currently has a market cap of $26 billion, but its shares have fallen 12% over the past 12 months, indicating that it has yet to benefit from China’s potential recovery. However, several growth drivers could propel Baidu forward. These include advancements in robotaxis, AI partnerships (including collaborations with Apple), and a strong cash position.
Unlike GE Vernova, Baidu’s growth profile looks different. Based on 2025 earnings estimates, the stock is trading at just 9 times forward earnings—50% below its 10-year average of 16 times. Analysts have an average 12 month price target of $108 per share, implying a 15% upside. However, this stock is more of a long-term play. Recent price targets from analysts suggest nearly 50% upside or more.
Additionally, billionaire investor David Tepper, who owns the Carolina Panthers, has been buying Chinese stocks, showing confidence in the region’s growth potential.
Growth Stock #3: Advanced Micro Devices (AMD)
Next up is Advanced Micro Devices, ticker symbol AMD. This stock has been frustrating to own recently, but sometimes the best opportunities arise when a stock is out of favor. Despite short-term challenges, AMD is fundamentally strong and continues to narrow the gap with Nvidia.
With a market cap of $179 billion, AMD is down about 35% from its highs. The company’s recent Q4 earnings were mixed, but a deeper look reveals positive trends. Notably, data center revenues now account for more than 50% of AMD’s business, positioning the company for significant growth.
As hyperscalers like Amazon, Meta, and Alphabet continue investing heavily in AI, demand for data centers and GPUs is expected to surge. GPU revenues are projected to grow from $5 billion today to more than $20 billion in the coming years.
AMD is expected to grow earnings by 43% in 2025, 33% in 2026, and 20% in 2027. The stock currently trades at a P/E ratio of 22, with a PEG ratio well below 1—indicating that it is undervalued relative to its growth potential. Since 2020, AMD’s earnings per share have increased from $1.29 to an estimated $4.60 in 2025—over 250% growth.
Despite recent downgrades, the average 12 month price target among analysts is $147, suggesting more than 30% upside. Given its long-term growth prospects, AMD could be a solid addition to your portfolio.
Growth Stock #4: SoFi Technologies (SOFI)
Turning our attention to the financial sector, we have SoFi Technologies, ticker symbol SOFI. Known as a fintech disruptor, SoFi has gained popularity among retail investors, particularly those interested in options trading due to its low share price.
With a market cap of $16 billion, SoFi’s shares have surged 80% over the past 12 months and an impressive 130% over the past six months. Despite these gains, the stock is still trading well below its post-IPO highs of around $25 per share.
One positive development for SoFi is that delinquency rates appear to have plateaued. If rates continue to stabilize or decline, it would be a major tailwind for the company. Additionally, as the Federal Reserve lowers interest rates, loan growth is expected to improve, directly benefiting SoFi.
The company continues to attract new members, reaching 10.1 million in Q4—a 34% year-over-year increase. Since SoFi recently became profitable, focusing on price-to-sales is more relevant than looking at P/E ratios. Currently, the stock trades at 5.1 times sales, with revenue growth expected to reach 22% this year.
For comparison, Robinhood—a similar fintech company—trades at a much higher price-to-sales ratio of 20. Given SoFi’s recent rally, it might be wise to wait for a better entry point before adding shares.
Growth Stock #5: Taiwan Semiconductor (TSM)
Returning to the AI space, Taiwan Semiconductor, ticker symbol TSM, is another chip manufacturer poised for growth. While many companies design their own AI chips, most rely on Taiwan Semiconductor for manufacturing. This includes major players like Nvidia and AMD, as well as Amazon, which is developing its own chips.
With a market cap of $1.1 trillion, Taiwan Semiconductor is one of the largest companies in the U.S. markets. Over the past 12 months, its shares have climbed 60%, although the stock is currently down nearly 10% from its recent 52 week highs. The recent dip, driven by concerns over a deep-sea news event, may have been overblown, creating a buying opportunity.
Earnings are due out this week, so it might be best to wait for the latest report before making a move. Taiwan Semiconductor trades at a P/E ratio of 22.8, with a PEG ratio below 1—indicating that the valuation is attractive given the company’s growth prospects.
Analysts rate the stock a strong buy, with an average 12 months price target of $245 per share—implying nearly 20% upside from current levels.
Growth Stock #6: NextEra Energy (NEE)
The final stock on our list is NextEra Energy, ticker symbol NEE. This might be a surprise, as it’s not a traditional growth stock. However, value stocks and slower-growing companies can still deliver solid returns through under-valuation and margin expansion.
NextEra Energy is a utility company with an AI angle, as its energy infrastructure supports the growing demand for AI capabilities. The company has a market cap of $143 billion, and its shares have risen 21% over the past 12 months.
What makes NextEra intriguing is its improving efficiency. Since 2020, EBITDA margins have grown from 48% to 64.3%, while free cash flow has increased from -$8 billion to nearly $5 billion. Free cash flow margins, which were flat around zero in 2020, are now at 20.5%. This combination of growth and efficiency is driving profitability.
Using 2025 EPS estimates, NextEra trades at 18.5 times earnings—well below its five-year average of 27.7 times and its 10-year average of 24.5 times. If the stock simply returns to its 10-year average, it could reach $90 per share—implying about 30% upside. Analysts are also optimistic, with an average price target of $86 per share, suggesting nearly 25% growth.
Final Thoughts
We’ve just explored six unique high-growth stocks that offer solid potentials for 2025. While some, like GE Vernova and AMD, may have been expected, others, like NextEra Energy, might have come as a surprise.
Which of these stocks do you like the most? Let us know in the comments below. And if you found this article helpful, please show your appreciation by clicking the like button and subscribing for more insights.
Stay tuned, and we’ll see you in the next one.
