While the stock market continues to gyrate, some stocks are managing to outperform others by a wide margin. Fueled by strong earnings, a bullish outlook and positive sentiment there are many hyper-growth stock opportunities available. Some companies have seen their share price more than double since January.
Investors hungry for growth following the dismal downturn in markets during 2022 should seek out these strong performing stocks and add them to their portfolio. While many stocks have enjoyed blistering runs year-to-date (ytd), they likely have more room to run. Especially after last year’s selloff and given that we are not yet in a full-blown bull market. Here are three hyper-growth stocks to buy in 2023.
Given the increasingly important role that its microchips and semiconductors play in advanced artificial intelligence (AI) models, it should come as no surprise that tech company Nvidia (NASDAQ:NVDA) has been crushing it this year. NVDA shares are up 101% since January, trouncing the gains in many other tech stocks, including other chipmakers. While the recent bull run has been spectacular, there are no signs it will end anytime soon, especially as the company is poised to play an ever greater role in driving AI applications forward.
Beyond AI, Nvidia’s chips are used in most other areas of technology, notably video games and cloud computing. Nvidia’s semiconductors are so advanced that the world’s most powerful quantum computers run on them. In the lead-up to its next earnings report scheduled for May 24, NVDA stock has been catching a bunch of analyst upgrades, including from Morgan Stanley (NYSE:MS), which recently said NVDA stock is a “buy” and placed a $304 price target on the shares, implying upside of more than 5%.
Meta Platforms (META)
Close behind NVDA stock are shares of Meta Platforms (NASDAQ:META), which have gained 86% ytd. META stock got a huge boost after its first-quarter earnings came in better-than-expected. The share price is now back above $230 and flirting with a new 52-week high. Investor sentiment towards Meta Platforms has also improved since the company scaled back the billions it was spending developing the virtual world known as the Metaverse, and undertook aggressive cost cutting measures.
The cuts have included laying off more than 20,000 employees and shelving many Metaverse projects. CEO Mark Zuckerberg had analysts and investors cheering after he labeled 2023 the year of efficiency at the company. It also hasn’t hurt that Meta announced a $40 billion stock buyback program, which has helped to lift the share price. Additionally, META stock is benefitting from the company’s forays into AI and government threats to ban Chinese social media rival TikTok. The future looks bright at Meta Platforms.
Chipotle Mexican Grill (CMG)
Investors might be surprised to find Mexican cuisine on a list of hyper-growth stock picks, but shares of Chipotle Mexican Grill (NYSE:CMG) have been crushing the market in 2023. CMG stock has gained 49% ytd. That compares to an increase of 12% in the stock of McDonald’s (NYSE:MCD) in the same time frame. Since the Covid-19 pandemic struck, Chipotle’s share price has nearly tripled. And the company continues to grow at a brisk pace, announcing plans to open 285 new locations and hire 15,000 workers this year.
While many restaurant chains have struggled to win back customers coming out of the pandemic, Chipotle has defied the odds. The company’s strong earnings in recent quarters has led to a number of analyst upgrades, including from investment bank Goldman Sachs (NYSE:GS), which recently labeled CMG stock a strong buy, saying “We continue to view Chipotle as one of the most compelling growth stocks.” The popularity of its Mexican cuisine continues to fuel hyper-growth at the company.
On the date of publication, Joel Baglole held long positions in NVDA and MS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.