3 Red-Hot Growth Stocks to Buy in 2025

Key Points

• Navitas’ sales of GaN and SiC chips could soar as the AI market expands.

• Arista will profit from the AI-driven growth of the hyperscale cloud market.

• Symbotic’s warehouse robots will continue to replace human workers.

• 10 stocks we like better than Navitas Semiconductor ›

With the market hovering near historic highs, it might seem like a risky time to buy high-growth stocks. The Fed also hasn't cut its benchmark rates this year, and those elevated interest rates could prevent investors from rotating back toward riskier investments.

Yet, most analysts still anticipate one or two more rate cuts this year -- and those reductions could drive the market to fresh all-time highs. It might be smart to scoop up these three high-growth tech stocks before that happens: Navitas Semiconductor (NASDAQ: NVTS), Arista Networks (NYSE: ANET), Symbotic (NASDAQ: SYM).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

Navitas Semiconductor

Navitas produces gallium nitride (GaN) and silicon carbide (SiC) chips, which can resist higher voltages, switch faster, and operate at hotter temperatures than silicon chips. That resilience makes them well-suited for laptop adapters, data center power supplies, EV chargers, solar inverters, industrial motor drives, and energy storage solutions.

Navitas previously generated most of its growth from the EV charging, solar, and industrial markets, but a lot of its future growth could come from AI-oriented data centers. Nvidia recently selected Navitas' GaN and SiC chips to process its AI workloads at its own next-gen data centers, and other companies could follow that lead over the next few years. Navitas also expects to profit from a growing need for fast chargers in the consumer electronics and EV markets.

From 2024 to 2027, analysts expect its revenue to grow at a CAGR of 17% as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) turns positive in the final year. It isn't a bargain at 15 times next year's sales, but its early-mover advantage in the nascent GaN and SiC markets justifies that premium valuation.

Arista Networks

Arista is a major producer of networking hardware and software. It sells low-latency switches that are optimized for hyperscale cloud deployments, and its modular operating system, EOS, is compatible with a broad range of open networking protocols. It mainly serves cloud and AI giants like Meta Platforms and Microsoft.

A lot of Arista's recent growth was driven by the rapid expansion of the AI market. That's admittedly a double-edged sword because it doesn't have much pricing power with those hyperscale customers, while the unpredictable tariffs are further compressing its gross margins.

Despite those near-term challenges, Arista should continue to grow much faster than its networking peers as the AI boom continues. From 2024 to 2027, analysts expect its revenue and adjusted EBITDA to grow at a CAGR of 19% and 15%, respectively. It isn't cheap at 32 times next year's adjusted EBITDA, but it could be a great way to profit from the growing need for AI-oriented data center and infrastructure upgrades.

Symbotic

Symbotic develops autonomous warehouse robots for processing pallets and cases. It claims a $50 million investment in just one of its modules (robots plus software) can generate $250 million in lifetime savings over 25 years. It generates most of its revenue from a long-term automation agreement with its major investor Walmart. Another big customer is GreenBox, a warehouse-as-a-service joint venture Symbotic set up two years ago with SoftBank (which also owns a stake in the company).

The company's heavy dependence on two of its biggest investors is worrisome, but it's gradually diluting that customer concentration through new automation deals with Target, Albertsons, C&S Wholesale, and other retailers.

From 2024 to 2027, analysts expect its revenue and adjusted EBITDA to grow at a CAGR of 24% and 71%, respectively. Those are incredible growth rates for a stock that trades at just 14 times next year's adjusted EBITDA, and it could head higher in the future as more companies replace their warehouse workers with its automated robots.

Should you invest $1,000 in Navitas Semiconductor right now?

Before you buy stock in Navitas Semiconductor, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Navitas Semiconductor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $631,505!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,103,313!*

Now, it’s worth noting Stock Advisor’s total average return is 1,039% — a market-crushing outperformance compared to 181% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 4, 2025

Leo Sun has positions in Meta Platforms. The Motley Fool has positions in and recommends Arista Networks, Meta Platforms, Microsoft, Nvidia, Symbotic, Target, and Walmart. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.