Top Growth Stocks to Buy for a Thriving Portfolio

The article suggests Nvidia, Microsoft, Alphabet, and Meta Platforms as promising growth stocks, highlighting their strong performance and relatively low valuations. Nvidia has reached a market capitalization of $4 trillion with average annual gains of 78% over the past decade, while Microsoft and Alphabet have forward P/E ratios below their five-year averages. Meta Platforms has a higher P/E ratio but a reasonable PEG ratio. The article recommends the iShares US Technology ETF as a smart growth stock to buy.

Nvidia, Microsoft, Alphabet, and Meta Platforms have emerged as promising growth stocks, each with its own set of compelling attributes. Nvidia, in particular, has made headlines by reaching a market capitalization of $4 trillion, a milestone that has significantly boosted the wealth of its CEO, Jensen Huang [1].

Nvidia's Growth and Market Dominance

Nvidia, a semiconductor titan, has averaged annual gains of 78% over the past decade, driven primarily by its dominance in AI chips. The company's market value has surged due to high demand from cloud providers and automakers. However, export curbs and new competition could potentially slow Nvidia's growth [1].

Microsoft's Diversified Growth

Microsoft, another compelling growth stock, boasts a forward P/E ratio of 33, which is not far above its five-year average of 30. The company's diverse business portfolio includes its dominant Office 365 suite, Azure cloud computing platform, Xbox gaming platform, and Windows operating system. Microsoft's revenue and net income have shown consistent growth, with a 13% and 18% increase in the third quarter of 2025, respectively [2].

Alphabet's "Once-in-a-Decade Opportunity"

Alphabet, the parent company of Google, is another attractive growth stock. Its recent forward P/E of 18.8 is well below its five-year average of 22.1. Alphabet encompasses a wide range of businesses, including the Google search engine, YouTube, Chrome browser, and Google Cloud Platform. The company's strong performance and relatively low valuation make it an appealing choice for investors [2].

Meta Platforms' User Base and Forward P/E

Meta Platforms, parent of Facebook, Instagram, and WhatsApp, has a forward P/E ratio of 28.5, which is above its five-year average of 21.1. However, its PEG ratio of 0.99 is reasonable, indicating that the stock's price is in line with its growth rate. With an average of 3.4 billion users daily, Meta Platforms has a strong user base and is well-positioned for future growth [2].

The iShares US Technology ETF

For investors looking to gain exposure to multiple promising growth stocks, the iShares US Technology ETF (NYSEMKT: IYW) is a smart choice. This ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index and has averaged annual returns of 19.6% over the past 15 years and 27.9% over the past three years. It invests at least 80% of its assets in technology stocks, with top holdings including Nvidia, Microsoft, Alphabet, and Meta Platforms [2].

Conclusion

Investors seeking growth stocks with strong fundamentals and relatively low valuations should consider Nvidia, Microsoft, Alphabet, and Meta Platforms. For those looking to diversify their portfolios, the iShares US Technology ETF offers a convenient way to gain exposure to these promising stocks.

References

[1] https://timesofindia.indiatimes.com/technology/tech-news/nvidia-ceo-jensen-huangs-net-worth-soars-1-billion-as-the-chipmaker-joins-the-4-trillion-club/articleshow/122377958.cms

[2] https://finance.yahoo.com/news/smartest-growth-stock-buy-1-105800291.html