7 Growth Stocks to Buy for a Sizzling Summer

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  • Nvidia (NVDA): Nvidia owns roughly 80% of the AI chip market, putting it in a dominant position for years to come. 
  • Palantir Technologies (PLTR): Good things are ahead for Palantir, despite the recent dip in stock price.
  • Microsoft (MSFT): Microsoft’s relationship with OpenAI has paid massive dividends for the company.
  • Keep reading for more growth stocks to buy for a sizzling summer!
growth stocks to buy - 7 Growth Stocks to Buy for a Sizzling Summer

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If you’re looking for a profitable summer, then growth stocks should be No. 1 on your priority list. Identifying the best growth stocks to buy – with the help of tools like the Portfolio Grader – is a great first step in your investing journey.

Growth stocks represent companies that are expected to grow at an above-average rate compared to others in the market. Investors can expect these companies to reinvest their earnings back into the business – so there are rarely dividends to speak of – because the No. 1 priority of these companies is to expand, innovate, or scale up operations.

They are the opposite of value stocks, which are often mature companies with stable earnings and dividends. And while the best value stocks are priced below their fundamentals, top growth stocks often have high price-to-earnings, price-to sales, or price-to-book ratios. But that’s the trade-off when you’re looking for the best growth stocks to buy.

While the stock market often experiences its weakest point in the summer, there’s no reason to avoid investing. In fact, I believe these growth stocks to buy will help you beat the market and make for a profitable summer investing season.

Nvidia (NVDA)

In this photo illustration, a woman holds a smartphone with the Nvidia Corporation (NVDA) logo displayed on the screen
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Nvidia (NASDAQ:NVDA) has been one of the best growth stocks to buy for months now, and that’s not going to end anytime soon. The semiconductor company is on a massive run as its graphics processing units (GPUs) are in high demand for their ability to operate generative artificial intelligence applications.

The most recent win for Nvidia is its new deal with Northrop Grumman (NYSE:NOC), in which the aerospace and defense company will use Nvidia’s AI platform and generative AI software.

Nvidia owns roughly 80% of the AI chip market, putting it in a dominant position for years to come. NVDA stock is up 90% this year and is in a position to hit $1,000 per share after it reports earnings on May 22. It gets “A” ratings for growth and overall in the Portfolio Grader.

Palantir Technologies (PLTR)

In this photo illustration, the Palantir Technologies (PLTR) logo is displayed on a smartphone screen.
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Palantir Technologies (NASDAQ:PLTR) isn’t anywhere as big as Nvidia. But it’s still a dynamic growth company that’s using the power of artificial intelligence to see massive gains.

Palantir long made its mark as a defense contractor, using AI and machine learning to provide real-time analysis and predictions to military units in the field.

But it’s also quickly growing its commercial business through its Artificial Intelligence Platform and its Gotham platform. An important partnership with Oracle (NYSE:ORCL) will make those products available through Oracle’s cloud network.

While Palantir stock pulled back following its first-quarter earnings report, I see good things ahead for this company.

Earnings were for $634.3 million in revenue, up 21% from a year ago. Palantir projects revenue in the range of $649 million to $653 million for the second quarter and raised its full-year revenue guidance to a range of $2.677 billion and $2.689 billion.

PLTR stock is up 26% this year and up 128% in the last 12 months. It gets a “B” rating for growth and an overall rating of “A” in the Portfolio Grader.

Microsoft (MSFT)

Microsoft logo close up. Microsoft (MSFT) Flagship Store Fifth Avenue, Manhattan, NYC.
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Microsoft (NASDAQ:MSFT) is riding AI headwinds to become the biggest company in the world – with a market capitalization of $3 billion, Microsoft is king of the hill for publicly traded companies.

The software company makes and distributes some of the most well-known products in the world, such as Word, Excel, PowerPoint, Outlook and Microsoft Teams.

Its Microsoft 365 suite is a must-have product for businesses and personal computer users around the world.

Microsoft also has an important relationship with OpenAI, the company behind ChatGPT. By investing $13 billion into the company over the years, Microsoft has been in the position of being the first to incorporate the ChatGPT generative AI into its Bing search engine, its Edge browser, and into Microsoft 365 products.

Microsoft has nicely recovered from its recent dip and the stock is up 11% so far this year. It gets “B” ratings for growth and overall in the Portfolio Grader.

Alphabet (GOOG)

a Google Pixel smartphone
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Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is another powerhouse in its own right. With its dominant Google search engine, Chrome browser, and products such as YouTube, Alphabet is in dominant force for both advertisers and content producers.

The company earned $80.5 billion in revenue in the first quarter of 2024 – an extraordinary figure – with $46.1 billion of that coming from Google search advertising.

Revenue was 15% better than last year, with solid year-over-year growth for YouTube advertising and Google search.

There are some bearish takes that OpenAI, which is the company that brought ChatGPT to life, could roll out a new AI-powered search engine as part of its partnership with Microsoft and that company’s Bing search engine.

OpenAI CEO Sam Altman has denied there’s an imminent announcement, but rumors persist and it’s having an effect on GOOG shares.

My advice? Take advantage of the dip should shares of GOOG stock continue to fall. It could be a great opportunity.

Super Micro Computer (SMCI)

Person holding smartphone with logo of US company Super Micro Computer Inc. (Supermicro) in front of website. Focus on phone display. Unmodified photo. SMCI stock
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If you’re bullish about the growth of computing and AI – and why wouldn’t you be? – then another growth stock to consider closely is Super Micro Computer (NASDAQ:SMCI).

After a huge run in 2023 and early 2024, Supermicro stock has pulled back somewhat, but that looks more like a buying opportunity than anything.

Its earnings report was impressive – sales tripled from a year ago and earnings per share were up fourfold. Supermicro also increased its guidance from $14.3 billion to $14.7 billion previously, to $14.7 billion to $15.1 billion currently.

But bearish investors ruled the day and SCMI stock dropped 23% following the earnings report.

But the thesis about Super Micro Computer hasn’t changed. The company will continue to work closely with chip manufacturers like Nvidia to design server architecture to bundle powerful AI chips so they can perform complex tasks.

SMCI stock is up 218% this year, and continues to get “A” ratings for growth and overall in the Portfolio Grader.

Meta Platforms (META)

Virtual character inside a virtual art gallery. Metaverse
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Meta Platforms (NASDAQ:META) is the social media company that’s behind Facebook, Instagram, Messenger, Threads and WhatsApp.

It also made waves in recent years by investing billions into the metaverse, where CEO Mark Zuckerberg hopes the future of computing and our online worlds lie.

While I don’t share Zuckerberg’s enthusiasm for the metaverse, I can’t help but be impressed with Meta for the staying power of its core products. Meta’s platforms count nearly half of the global population – almost 4 billion people – as monthly average users. That’s extraordinary.

And the company’s reach and the detailed information it has on its users – thanks to their users’ profiles and postings – allows Meta to be highly specific in targeting advertising to people who are most likely to buy. If you’re an advertiser, you’re probably very familiar with Meta’s advertising platform.

META stock is up 33% in 2024. It gets “A” ratings for growth and overall in the Portfolio Grader.

SoundHound (SOUN)

In this photo illustration, the SoundHound logo seen displayed on a smartphone. SOUN stock
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SoundHound (NASDAQ:SOUN) is a very interesting and innovative company. It has a variety of voice recognition products – powered by artificial intelligence – that allow customers to do everything from asking questions about their vehicle maintenance to providing step-by-step training for employees.

Even Nvidia is taking notice. The chipmaker took a stake of its own in the company, and as investors took notice, SOUN stock soared. At one point, shares of SoundHound were up more than 300% this year.

SoundHound reported a strong quarter, with auto units and cloud users expanding by double digits. Revenue was $11.6 million, up 73% from a year ago. The company continued to post losses as it scales, with a net loss of $19.9 million or 7 cents per share.

SOUN stock is up 141% in 2024. It gets an “A” rating for growth and a “B” overall in the Portfolio Grader.

On the date of publication, Louis Navellier had a long position in NVDA, PLTR, and MSFT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article had a long position in NVDA and PLTR. The staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.


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