Got $8,000? 3 Top Growth Stocks to Buy That Could Double Your Money
Sunday, Jan 5, 2025 5:03 am ET
MSFT --

Are you looking to invest $8,000 in the stock market and watch it grow? Look no further! We've identified three top growth stocks that have the potential to double your money. But first, let's address the elephant in the room: the market's recent volatility. The first month of 2025 has been a rollercoaster ride, with the Santa Claus rally failing to materialize and a selloff followed by a rebound on Friday. However, investors should not be deterred by this short-term noise. The long-term growth prospects of these three stocks remain intact.
1. Microsoft Corporation (MSFT)
- *Current Stock Price:* $423.35
- *Market Cap:* $3,147,556,454,400
- *Sector:* Technology
- *Industry:* Software - Infrastructure
- *EPS:* $12.11
- *Forward EPS:* $14.95
- *P/E Ratio:* 34.958714
- *Forward P/E:* 28.193167
- *52 Week Low:* $369.01
- *52 Week High:* $468.35
- *50 Day Average:* $428.4624
- *200 Day Average:* $425.18256
Microsoft Corporation is a tech giant that develops and supports software, services, devices, and solutions worldwide. Its Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services, such as Azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services. The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories. Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; and search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates.
Microsoft's strong cloud services, particularly Azure, are driving growth. AI accounted for 12 percentage points of Azure's growth during the first quarter of fiscal 2025. The company's AI business is on track to surpass an annual revenue run rate of $10 billion next quarter, making it the fastest-growing business in Microsoft's history. Additionally, Microsoft Azure's share of the cloud infrastructure services market increased to 20% last quarter, growing at a slightly faster pace than the 23% growth in cloud infrastructure spending. This strong market position sets the stage for long-term growth in Microsoft's cloud business, as global cloud spending is expected to hit $2 trillion by 2030, driven by the growth in spending on generative AI offerings.
Analysts expect Microsoft's growth to accelerate, with earnings estimated to increase by 10% in fiscal 2025 to $13.04 per share. The company's strong financial health, with a market capitalization of over $3 trillion and a total cash position of $78.43 billion, supports its growth prospects. Microsoft's diversified revenue streams and focus on emerging technologies, such as AI and cloud services, position it well for future growth.
2. Lam Research (LRCX)
- *Current Stock Price:* $243.36
- *Market Cap:* $367,858,103,092
- *Sector:* Technology
- *Industry:* Semiconductors
- *EPS:* $6.08
- *Forward EPS:* $8.31
- *P/E Ratio:* 40.026318
- *Forward P/E:* 29.290522
- *52 Week Low:* $164.08
- *52 Week High:* $260.1
- *50 Day Average:* $237.9004
- *200 Day Average:* $214.0956
Lam Research is a leading provider of wafer fabrication equipment and services to the semiconductor industry. The company's products are used by customers to manufacture integrated circuits and other semiconductor devices. Lam Research's strong position in the memory market, with 35% of its revenue generated from selling its semiconductor manufacturing equipment to memory makers, is expected to benefit from the recovery in the memory market. Market research firm TrendForce forecasts a 25% increase in capital spending for dynamic random-access memory (DRAM) in 2025 and a 10% increase in spending on NAND flash storage. This recovery in the memory market is expected to drive demand for Lam Research's products and services.

Lam Research's revenue jumped 20% year over year in the first quarter of fiscal 2025, along with a 25% increase in earnings. The company's strong financial performance, with a market capitalization of over $367 billion and a total cash position of $6.52 billion, supports its growth prospects. Analysts expect Lam's growth to pick up in the current fiscal year, with earnings expected to jump 17% in both the current and the next fiscal year. The company's strong position in the memory market, coupled with the growing demand for AI and memory, suggests that this growth is sustainable.
3. Apple Inc. (AAPL)
- *Current Stock Price:* $243.36
- *Market Cap:* $3,678,581,030,920
- *Sector:* Technology
- *Industry:* Consumer Electronics
- *EPS:* $6.08
- *Forward EPS:* $8.31
- *P/E Ratio:* 40.026318
- *Forward P/E:* 29.290522
- *52 Week Low:* $164.08
- *52 Week High:* $260.1
- *50 Day Average:* $237.9004
- *200 Day Average:* $214.0956
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts, as well as advertising services include third-party licensing arrangements and its own advertising platforms. In addition, the company offers various subscription-based services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV+, which offers exclusive original content; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property.
Apple's strong brand and ecosystem of products and services, including iPhone, Mac, iPad, AirPods, Apple Watch, and Apple TV, drive customer loyalty and cross-selling opportunities. The company's focus on innovation and premium pricing strategy have contributed to its financial success. Apple's significant cash reserves and strong cash flow generation capabilities enable it to invest in R&D, strategic acquisitions, and capital expenditures, further driving growth.
Analysts expect Apple's growth to continue, with earnings expected to increase by 17% in both the current and the next fiscal year. The company's strong financial health, with a market capitalization of over $3.6 trillion and a total cash position of $65.17 billion, supports its growth prospects