Prediction: These 2 Hyper-Growth Stocks May Double in 5 Years
Investing
It’s tough to predict which high-growth firms are capable of doubling up. And while it may make sense to look to the past for a hint of what could come in the future, I do think that chasing high-momentum stocks with the expectations of “more of the same” is just a recipe for disappointment.
Of course, you’ll have the odd Nvidia (NASDAQ:NVDA) that defies expectations until suddenly it becomes the most valuable company on the planet. But continuing to ride aboard the high-flyers without a sense of valuation, I think, could lead to less-than-impressive results. Either way, being patient enough to stay the course with a winner, even through its laggy periods, could be key to the best results over time.
While everyone is pounding the table on Nvidia right now, I think there are other hyper-growth plays that I believe have a good chance of becoming one of the next groups of market leaders. For investors willing to hold for at least five years, the following high-tech high-flyers, I think, have what it takes to post a double.
As always, though, high upside potential tends to accompany extreme volatility, making the following names not a great fit for those who will flee at the first signs of a tech-wide pullback. In any case, I find the pair to be intriguing enough to keep watch of for H2 2025.
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These less-obvious AI software stocks could be next to stand tall as the number of winners in the tech scene looks to broaden.
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SNOW and DDOG are lesser-appreciated hyper-growth stocks with room to run in this AI boom.
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Snowflake
Snowflake (NYSE:SNOW) is one of the few high-growth tech stocks that trade on the NYSE rather than the Nasdaq. Still, it’s a name not to underestimate, especially as its new leader, CEO Sridhar Ramaswamy, continues to make all the right changes to position the firm for gains in the AI race. For those unfamiliar with Snowflake, it’s a data cloud company that’s really picked up its AI game since Ramaswamy took the helm back in February 2024. Though Snowflake shares have been volatile, I do think the latest run-up that took it up over 83% since last September has legs.
Just last month, Morgan Stanley analyst Sanjit Singh praised Snowflake under Ramaswamy. Singh sees Snowflake as a “better executing and faster innovating company” under its new top boss. These are not words to be taken lightly, especially as AI software just starts to join the AI rally. With a strong Q1 in the books and a better guide, it’s time to treat the big data AI firm as a serious contender in AI. If Snowflake gets AI right, Singh sees Snowflake enjoying a north of 20% compound annual growth rate (CAGR) over the next five years.
As more firms get up to speed with the AI age, I wouldn’t be surprised if Snowflake were to enjoy more than 25% in growth, especially as the firm’s AI investments pay off.
Datadog
Datadog (NASDAQ:DDOG) has fetched some pretty stellar results for investors since those Liberation Day lows, now up close to 58% in the months that followed. Indeed, the stock got a shot in the arm as news broke that it’d be added to the S&P 500, only to come back down to Earth after a big-name analyst over at Guggenheim downgraded shares to “Sell,” citing OpenAI optimization risks that could weigh heavily on revenue growth in the second half.
Indeed, this is, indeed, a major risk for Datadog as OpenAI continues refining its models. And while “Sell” ratings are quite rare to come across, especially in the tech sector these days, I do think that Datadog shares could prove a great pick-up on weakness.
Over the longer term, the rise of AI agents, I believe, will call for more monitoring and observability. In any case, I’d keep tabs on the DevSecOps firm as it still stands to gain a great deal from the ongoing AI revolution that’s sure to see big bumps in the road ahead.
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