Nvidia - Nvidia's stock is down more than 10% from its 2024 highs, making it an attractive buy [1] - The company's revenue grew by 94% year over year in the latest quarter, driven by its top-tier GPUs used for AI model training [1] - Nvidia trades at a P/E ratio of 51, which is not expensive compared to Apple (41) and Microsoft (36), especially considering its higher projected growth [2] - Wall Street analysts project 51% revenue growth for Nvidia in FY 2026 [3] Taiwan Semiconductor - TSMC's revenue rose 36% year over year in Q3, driven by its strong AI business, which is projected to triple this year [4] - Wall Street analysts expect TSMC's revenue to grow about 25% in 2025 [4] - TSMC trades at 31 times trailing earnings, cheaper than Apple and Microsoft, despite faster growth [5] - TSMC is a dominant chip manufacturer for companies like Nvidia and Apple, with the best chip foundries in the business [9] MercadoLibre - MercadoLibre is a Latin American e-commerce giant with a significant presence in fintech, often compared to Amazon combined with PayPal [6] - The company has sustained over 30% growth for a long time, with incredible results for shareholders [11] - MercadoLibre's revenue is projected to grow 24% in 2025, but it has struggled with bad debt in its fintech division, impacting profits [11] - The company trades at 61 times trailing earnings, but its forward P/E ratio of 38 for 2025 is more attractive [12] - MercadoLibre's operating revenue grew 35.27% year over year in the latest quarter, with TTM revenue reaching 18.49 billion [10]
3 Red-Hot Growth Stocks to Buy in 2025