2 High-Powered Growth Stocks to Buy Now

Key Points

• Anticipated deregulation and advancements in artificial intelligence have pushed valuations sky-high, but select opportunities remain.

• Nebius Group's 385% year-over-year revenue growth and path to $1 billion in annual recurring revenue make today's premium valuation tomorrow's bargain.

• Rocket Lab's evolution from launch provider to full-stack space company justifies its premium valuation.

• These 10 stocks could mint the next wave of millionaires ›

Growth stocks have made a strong comeback after a rocky start to the year, driven by anticipated deregulation and significant breakthroughs in artificial intelligence (AI). Valuations have surged, and at first glance, bargains seem extinct.

Look closer. Two high-powered growth stocks buck this trend, offering compelling opportunities despite price tags that would terrify traditional investors.

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.

When 70 times sales is cheap

Nebius Group (NASDAQ: NBIS) trades at over 70 times trailing sales, an astronomical valuation by any measure. Why is this valuation deceptive in light of its AI tailwinds? Because the company is growing so fast that backward-looking metrics become meaningless.

The company posted 385% year-over-year revenue growth in Q1 2025. Annual recurring revenue hit $310 million in April, and management guides to $750 million to $1 billion by year's end. When revenue triples in 12 months, that multiple of 70 times trailing sales effectively collapses to under 25 times on forward estimates -- before factoring in the next wave of AI infrastructure demand. The window to act closes fast.

Nebius builds physical clusters of graphics processing units (GPUs) for enterprises desperate for AI compute power. Its Kansas City facility will house 35,000 Nvidia GPUs when complete, one of the largest deployments outside Amazon or Microsoft.

Nebius's enterprise customers span from autonomous vehicle developers to large language model startups, all battling for scarce GPU access as AI adoption accelerates. Nebius's compute clusters power everything from next-generation autonomous driving algorithms to cutting-edge generative AI platforms, making it indispensable to industries chasing exponential AI growth. With $1.44 billion in cash and manageable debt from recent convertible notes, the company can fund this massive expansion.

Nvidia's direct investment speaks volumes. When the world's dominant AI chip maker backs your infrastructure buildout, it validates the technology and strategy. Early access to Blackwell chips gives Nebius pricing advantages that competitors can't match. Jeff Bezos doubled down through Bezos Expeditions' investment in Nebius's Toloka AI subsidiary.

With first-mover scale, privileged access to Blackwell chips, and $2.4 billion in total funding, including recent convertible notes, Nebius has carved out a widening moat in the AI compute arms race, one that's hard for new entrants to replicate without billions in upfront capital.

A space race winner

Humanity is going to the stars. That much is certain. Rocket Lab (NASDAQ: RKLB) trades at 41 times trailing sales, but this valuation misses the transformation under way.

Q1 2025 revenue hit $123 million, up 32% year over year, with more coming from spacecraft components than launches. Today, over 50% of Rocket Lab's revenue comes from spacecraft systems, not launches, a diversification that boosts margins and stabilizes growth.

This shift to higher-margin, recurring revenue from spacecraft components fundamentally changes the investment thesis from a pure-play launch company to a diversified space infrastructure provider.

At the start of the year, Rocket Lab was selected as one of five providers for the U.S. Space Force's $5.6 billion National Security Space Launch Phase 3 Lane 1 program, positioning the company to compete for high-priority defense missions. The company also participates in multiple billion-dollar defense frameworks, including the Department of Defense's MACH-TB hypersonic testing program.

These selections validate Rocket Lab's technology while providing multiyear revenue opportunities. With satellite demand far outstripping global launch capacity, Rocket Lab's position as a trusted provider -- and one of the few with access to major defense frameworks -- gives it pricing power, resilience, and a clear runway for growth.

Why premium prices make sense here

These valuations look expensive because the market applies traditional metrics to revolutionary businesses. AI infrastructure and space commercialization represent generational shifts with economics that break conventional models.

Nebius benefits from AI compute demand doubling every six months. Rocket Lab rides satellite launches projected to increase fivefold by 2030. Both companies execute against opportunities larger than their current valuations suggest.

The real risk isn't paying premium prices for companies growing at triple-digit rates. It's watching from the sidelines as others capture the upside of tomorrow's giants. For investors willing to think beyond outdated valuation fears, Nebius Group and Rocket Lab offer rare asymmetric opportunities in industries poised for exponential growth.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,048%* — a market-crushing outperformance compared to 179% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of July 7, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. George Budwell has positions in Microsoft, Nvidia, and Rocket Lab. The Motley Fool has positions in and recommends Amazon, Microsoft, Nvidia, and Rocket Lab. The Motley Fool recommends Nebius Group and 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.