The 6 Best Growth Stocks to Buy in December
The Motley Fool·2025-12-01 14:00

Core Viewpoint - The AI investment megatrend is expected to continue thriving into 2026, with fund managers adjusting their portfolios for future growth opportunities, particularly in growth stocks that are currently reasonably priced [1] Group 1: Nvidia - Nvidia remains a leading player in the AI sector, with its GPUs being the most popular hardware for AI workloads, reflecting strong financial results [2] - For fiscal Q3 2026, Nvidia reported a revenue increase of 62% year-over-year to $57 billion, with projected sales visibility of $500 billion for its Blackwell and Rubin chips from 2025 to 2026 [4] - Nvidia's trailing-12-month revenue is $187 billion, indicating robust growth potential for the upcoming year [4] Group 2: Broadcom - Broadcom specializes in custom AI chips, developing application-specific integrated circuits in collaboration with AI hyperscalers to optimize performance and reduce costs [5] - The company is expected to have a significant year in 2026, making it a strong investment opportunity [8] Group 3: Taiwan Semiconductor Manufacturing - Taiwan Semiconductor Manufacturing (TSMC) is positioned neutrally in the chip space, manufacturing high-end chips for companies like Nvidia and Broadcom, making it a safer investment [9] - TSMC's revenue grew by 41% year-over-year in Q3, and it trades at a discount compared to Nvidia and Broadcom, presenting a compelling buying opportunity [10] Group 4: Meta Platforms - Meta Platforms has seen a sharp decline in stock price due to high capital expenditure plans for 2026, but it reported a 26% year-over-year revenue increase in Q3, indicating strong operational performance [12][13] - The market may eventually recognize Meta's potential, making it a worthwhile investment [13] Group 5: Alphabet - Alphabet has transformed from an AI underperformer to a leader, with its generative AI model gaining recognition and integration into its product ecosystem, resulting in a 16% revenue increase year-over-year in Q3 [14][15] - The potential for Alphabet to sell its TPUs to other companies could create a new revenue stream in 2026, enhancing its investment appeal [15] Group 6: Amazon - Amazon's stock performance has lagged behind its peers, with only a 5% increase this year, but it reported a 13% revenue growth in Q3, driven by its cloud computing and advertising segments [16] - The strong performance of these divisions is expected to continue, making Amazon a stock to consider for investment in December [16]

Amazon-The 6 Best Growth Stocks to Buy in December - Reportify