The market continues to be volatile in 2025, with stocks generally trading well off their previous highs. For investors with a long-term mindset, this raises some potential opportunities. There are at least two hypergrowth stocks out there right now that investors can buy this year at a share price discount, taking advantage of the choppiness (which is likely to continue). Just to be clear, hypergrowth stocks represent companies that have recently seen 30% revenue growth or above.
Here are two hypergrowth stocks long-term investors should be taking a closer look at right now.
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1. Nvidia
With revenue growth of more than 100% last year, including 78% last quarter, Nvidia(NASDAQ: NVDA) certainly fits into the hypergrowth category. However, with a forward price-to-earnings ratio (P/E) of 21.5 times this year's analyst estimates and a 0.4 price/earnings-to-growth (PEG) ratio, it is not valued like a hypergrowth stock. Stocks with PEGs below 1 are typically considered undervalued, and hypergrowth stocks generally trade at premiums.
The stock has come under pressure due to worries about the impact of tariffs and new export restrictions for its chips to China. The latter will certainly have an impact on its business, with China accounting for about 11% of its sales last year. However, the sale of scaled-back chips to China has never been the company's big growth driver, and demand for its graphic processing units (GPUs) remains robust.
Continuing to ramp up production of its new Blackwell chips should still drive strong growth for Nvidia this year, even if it sees a material decline in sales to China. That said, I'd look for the company to potentially direct its H20 chip manufacturing capacity to other GPUs, likely its H100 and H200 chips, given that they are built on the same architecture as the H20. In addition, I'd expect some sales of Nvidia's GPUs to still make it to China through the black market.
Despite all the noise, Nvidia still has a tremendous opportunity ahead, as companies continue to rush to build data center infrastructure to meet increasing demand. This buildout is led by cloud computing companies, which are assisting customers in developing their own artificial intelligence (AI) models and apps that run on their infrastructure platforms. Simultaneously, several companies are investing heavily in their own data center infrastructure in a rush to create their own AI models. These models require exponentially more computing power to advance from previous versions, which means more GPUs are needed.
With over 80% market share in the GPU space, Nvidia remains well-positioned for the strong, ongoing growth expected from the AI data center buildout.
Image source: Getty Images.
2. Palantir Technologies
Another company that produced more than 30% revenue growth last quarter was Palantir Technologies(NASDAQ: PLTR). The data analytics and AI company saw accelerating revenue growth throughout 2024 that culminated in an impressive fourth quarter, when its revenue soared 36%. It also forecast that its revenue growth would be around 31% for 2025, although that may turn out to be a conservative estimate.
As a software company, Palantir should see little direct impact from tariffs. Meanwhile, its AI platform helps customers solve problems and create efficiencies, which is vital during periods of uncertainty like this. It even offers a product specifically designed to help bring manufacturing back to the U.S.
The company's biggest growth driver has been in the commercial sector with its AI platform. Instead of looking to build out AI models, Palantir has instead focused on the application and workflow software layers to become an AI operating system and make AI more actionable. This has driven strong customer growth, but much of this early work has been proof-of-concept. It has a big growth opportunity as it takes these customers into production to solve real-world problems.
Palantir made a name for itself in the government sector, where its software platform has been used for such mission-critical tasks as helping fight terrorism and tracking COVID-19 cases. Its platform is also used on the battlefield to help track troop movements and help commanders make better decisions. The U.S. government remains its largest customer, and revenue growth has started to accelerate as the government begins to embrace AI. Given that its software platform can be used to identify problems and create efficiencies, it could be a Department of Government Efficiency (DOGE) winner, despite threatened cuts to the Department of Defense's budget.
Meanwhile, the company recently saw a potential third leg of growth emerge after it won a deal with NATO for its Maven Smart System, which uses AI to help improve military intelligence and strategic decision-making. While terms were not disclosed, past Maven contracts with the U.S. government have tended to be very large. With the Trump administration pressuring European countries that are a part of NATO to increase military spending, the company could continue to see solid growth in this area.
While Palantir stock is not cheap, even after the market pullback, it still has some of the most intriguing long-term potential of any stock out there.
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Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.
