3 Brilliant Growth Stocks to Buy Now and Hold for the Long Term

Key Points

• Data center growth will continue to drive Nvidia's GPU sales.

• Taiwan Semiconductor Manufacturing is predicting monster sales growth over the next five years.

• Amazon's operating income growth is driven by two divisions.

• 10 stocks we like better than Nvidia ›

While the conventional view of investing suggests that there are two core styles of investing -- growth and value -- I believe this notion is flawed. In reality, there's just value investing. If you're buying a stock today, you're doing so with the expectation that it will be worth more tomorrow. Now, the paths that a stock could take to get to that higher price can be different, be it through business growth (traditionally defined growth investing) or a stock's valuation rising (traditionally defined value investing). The goal, though, is the same.

In my view, Nvidia (NASDAQ: NVDA), Taiwan Semiconductor (NYSE: TSM), and Amazon (NASDAQ: AMZN) are three top growth stocks to buy now. I think they're going to be worth much more years down the road, and they'll achieve that increase through business growth.

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Nvidia

Nvidia has become one of the top growth stocks of all time, thanks to its massive rise in sales and earnings from artificial intelligence-related demand. Nvidia's graphics processing units (GPUs) provide the largest share of the computing power that underpins most of the generative AI models in use today, and its business is expected to grow even more as AI use expands.

Nvidia's largest clients are various cloud infrastructure hyperscalers that are focused on building massive data center networks to process AI demand. Standing up new data centers can take years of construction. All of the major AI hyperscalers announced plans for record-setting capital expenditures in 2025. However, investors shouldn't be surprised when new record-setting capex figures are announced in 2026, as data centers are multiyear investments.

At its 2025 GTC event, Nvidia cited a third-party analysis that found that data center capital expenditures were $400 billion in 2024, and forecast that they would rise to $1 trillion by 2028. Given that many of these data centers are being equipped with Nvidia's GPUs, it's expected to experience significant growth over the next few years.

As a result, I think it's one of the top growth stocks to buy right now.

Taiwan Semiconductor Manufacturing

Nvidia is a fabless chip designer -- it doesn't own foundries with which to produce its own chips. Instead, it farms out that work to Taiwan Semiconductor -- the largest third-party foundry operator in the world. It also can produce the most advanced, cutting-edge silicon. In addition to Nvidia, many other big tech companies are clients of TSMC, giving it a wide variety of industries to benefit from.

An investment in Taiwan Semiconductor is a bet that demand for high-end chips will continue rising, which seems like a no-brainer idea.

Taiwan Semiconductor's management is also bullish on its prospects. It predicts that its AI-related revenue will grow at a 45% compound annual rate over the next five years. Management also gave a companywide projection of nearly 20% compound annual growth for that period.

That would be a monster growth rate for any company, and it makes TSMC a smart buy right now.

Amazon

At first glance, Amazon might not look like much of a growth company anymore. In the first quarter, it only grew revenue by 9% year over year. However, the top line is the wrong metric to focus on when it comes to Amazon.

Instead, investors should focus on its operating income, as this is the primary growth story in Amazon's stock. The tech giant's revenues are dominated by its e-commerce business -- which isn't growing all that quickly. However, its cloud computing business and its advertising services are excelling. They delivered 17% and 18% growth, respectively, during Q1. The lower-margin sales in Amazon's massive commerce platform overshadow the revenue contributions of those two divisions, but their superior operating margins are driving rapid growth in operating profits.

In Q1, Amazon's operating income rose by 20% year over year.

AMZN Operating Income (Quarterly YoY Growth) data by YCharts.

Although that was a slowdown from previous quarters, it was still an impressive growth rate. Amazon Web Services alone generated 63% of the company's total operating income in Q1, and its strong revenue growth rate should allow it to continue posting strong operating income growth for years to come. Unfortunately, the company lumps its advertising revenue in with its commerce revenue, which makes it harder to gauge that business's impact. Still, it undoubtedly has helped Amazon's commerce margins improve over the past few quarters, and any growth in operating income in that segment can likely be traced back to advertising.

All three of these companies have ways to dramatically grow over the next few years. As a result, I think each looks like a solid stock to scoop up right now.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keithen Drury has positions in Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.