2 Growth Stocks to Buy in December

The great tech and growth stock rally has been holding up well going into the midpoint of December. With high hopes for Santa Claus to deliver some further gains for the markets over the holiday season, which is just upon us, investors may wonder if now is a good time to put some money to work on certain high-multiple growth plays on strength.

Of course, buying the dip has been a fantastic strategy throughout this bull market. And while the dips have been shallower and shallower, with corrections now few and far between (some market timers expect one to hit earlier next year), it’s not hard to imagine many cash-heavy investors “giving in” and buying their favorite growth stocks while they’re hot. Though only time will tell if they’re too hot to handle this December, I continue to see relative bargains to be had for investors looking to set themselves up well for the new year.

Let’s look at two growth stocks that look like tempting buys this December.

Key Points About This Article

• Apple and Broadcom still look like affordable growth stock picks ahead of the holidays.
• AI is a massive drive for both companies going into 2025.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Apple

Apple (NASDAQ:AAPL) Intelligence is finally here. While the latest iOS 18.2 launch may have come up short of expectations for many (there was a lot of hype going into the launch of iOS 18.2), I still think that investors should play the longer-term game with Apple’s AI rollout. Sure, new AI features may be nothing new to us after having spent around two years playing with language models like ChatGPT and image generators like Dall-E. However, the new AI features are appreciated and incredibly convenient.

Further, they will get better in time as some of the newer features, like Image Playground, graduate from beta. Indeed, it’s quite interesting that Apple has chosen to release some recent features in full releases while they’re still in beta. Whether we’re talking about Image Playgrounds or spatial personas on Vision Pro, I think the message is loud and clear: these innovations are just the start. And in their current form, they’re the worst they’ll ever be.

While iOS 18.2 is the biggest AI launch yet for Apple, it won’t be long before future updates move us closer to the profound personalized AI experience that Apple aims to deliver. Indeed, Apple Intelligence isn’t just a one-and-done type of product. It’s a work in progress, with some features still in beta and others in the pipeline. Given this, I’d argue the stock deserves to trade at a huge premium. Whether a multiple north of 33.0 times forward price-to-earnings (P/E) represents too hefty of a premium, though, remains to be seen.

Either way, Citi analyst Atif Malik recently noted that iOS 18.2 was “in line” with expectations, also noting that the “staggered rollout of Apple Intelligence features” will make future iPhone refresh cycles “different” from prior cycles.

Broadcom

Broadcom (NASDAQ:AVGO) reported Q4 numbers on Thursday afternoon, and they were quite impressive, sparking a rally of more than 14% in the after-hours session. Revenues took off, thanks primarily to immense strength in the semiconductor business. As the company continues making the most of the AI boom, it’s hard not to pursue the stock while it’s relatively cheaper than most other red-hot AI chip names that have lost some of their luster in recent weeks.

At writing, AVGO stock trades are close to 29.7 times forward P/E, making it a relative AI value play, at least in my view. Once again, Citi made a brilliant call, urging investors to buy the stock ahead of the big Q4 reveal, citing expected strength on many fronts (AI and non-AI).

Even as Apple looks to swap out some Broadcom components with its own in 2025, Broadcom has more than enough AI strength to offset the loss of such business. Looking further out, I continue to view the opportunity in custom AI chips as a boon for AVGO stock over the next several years.

With Broadcom back at all-time highs, the big question for investors is whether the chip giant is as magnificent as the Magnificent Seven. I think it’s every bit as magnificent going into 2025.