3 Hypergrowth Tech Stocks to Buy With $3,000 Right Now
The average growth rate of the S&P 500 (^GSPC +0.81%) over the long term is around 10%. So, if a company is growing around there, I’d consider that average growth. If it’s in the mid-teens and higher, it’s certainly above-average growth. However, when you get into stocks that are growing their revenue consistently above the 50% mark, I think they easily fall under the “hypergrowth” description, as these companies are growing far faster than their peers.
Three stocks that fall under this categorization are Broadcom (AVGO +3.24%), Micron (MU +4.55%), and IonQ (IONQ 0.69%). These three are all on sale, and look like they could continue posting incredible hypergrowth results.
Image source: Getty Images.
1. Broadcom
Technically, Broadcom doesn’t fall above the 50% growth mark I established above. But that’s OK. During its latest quarter, it grew revenue at a 48% year-over-year pace, but that is only the beginning. Broadcom does a lot of things as a business, but the most exciting and fastest-growing is its custom AI chip business.
Broadcom assists other companies in designing custom AI chips that can run AI training and workloads at a more cost-effective rate than traditional GPU-based computing. The kicker is that the workload must be properly configured to run on one of these custom AI chips, but that’s something that’s now easily established, given that AI workloads have taken shape over the past few years.
Today’s Change
(3.24%) $12.59
Current Price
$401.28
Key Data Points
Market Cap
Day’s Range
$387.95 – $407.51
52wk Range
$269.58 – $495.00
Volume
1.1M
Avg Vol
26.7M
Gross Margin
65.66%
Dividend Yield
0.63%
Broadcom expects huge growth from this division, and projects to make $100 billion alone from AI semiconductors in 2027. Last year, Broadcom made only $64 billion in total. This easily categorizes it as a hypergrowth stock, with 66% and 62% revenue growth expected this year and next.
As the market starts to take a more focused approach to AI computing, I think Broadcom is an excellent investment to take advantage of that.
2. Micron
Micron is also involved in the AI computing space, although it’s in a different bucket. It makes memory chips, which are vital to data center operations in multiple ways. Regardless of the type of memory used, there is a major shortage because the memory chip industry isn’t accustomed to this level of demand. As a result, prices have skyrocketed, allowing Micron to increase revenue and profits.
MU Revenue (Quarterly YoY Growth) data by YCharts
Growth this fast doesn’t come around often, let alone to a company that’s trading at more than a $1 trillion valuation. However, a question investors must wrestle with is how long chip demand will last and if there will continue to be a shortage as more production capacity comes online.
Micron’s management team offered some commentary on this subject during its last earnings announcement and noted that it expected these tight conditions to persist beyond 2027. That’s a big deal for investors, and Micron will likely continue being a hypergrowth company for the next few years.
3. IonQ
IonQ is taking a different approach to computing than the other two on this list, as it operates in the quantum computing space. While this is still an early-stage technology that’s proving its worth, IonQ is one of the leaders in this field. Its technology holds the world record for accuracy, proving its leadership status.
Today’s Change
(-0.69%) $-0.31
Current Price
$44.77
Key Data Points
Market Cap
Day’s Range
$44.37 – $46.00
52wk Range
$25.89 – $84.64
Volume
200.3K
Avg Vol
32M
Gross Margin
-2879.52%
Even though commercially viable quantum computing technology isn’t here yet, IonQ is still selling early-stage research systems and signing several partnerships with clients to learn and test uses for quantum computers. This is leading to soaring revenue, with IonQ’s growth coming in at a jaw-dropping 755% year-over-year pace.
That easily constitutes a hypergrowth company, and if IonQ can become a company that has a viable product, it could grow into a massive company, as the quantum computing market could reach up to $72 billion in annual sales by 2035. Time will tell if IonQ can reach that point, but all signs are positive right now.
