With signs pointing to continued economic growth in 2024, investors may want to position their portfolios with some of the top growth stocks that analysts are recommending right now. Growth stocks tend to perform well during periods of expansion as they capitalize on increased consumer and business spending.
I’ve compiled information on five growth stocks that analysts view as strong buys for 2024:
Nvidia (NVDA)
Nvidia is a leader in graphics processing units (GPUs) and artificial intelligence technology. The company is well-positioned to benefit from massive spending by data centers upgrading their infrastructure to support AI workloads. Over the next few years, Nvidia expects data center customers to spend nearly $1 trillion transitioning to GPU-powered systems needed for machine learning and other advanced computing capabilities.
Advanced Micro Devices (AMD)
Advanced Micro Devices is a rapidly growing semiconductor company gaining market share for its central processing units (CPUs) and GPUs. AMD is expanding into high-performance computing chips specialized for artificial intelligence. With strong revenue growth expected in key segments like data center, gaming, and machine learning, analysts see further upside for AMD stock.
Netflix (NFLX)
Netflix pioneered the streaming video model and now has over 230 million paid subscribers globally. While subscriber growth slowed in 2022 amidst economic uncertainty and intensifying competition, analysts predict a rebound in 2023/2024 driven by penetration in international markets like Asia and the return of blockbuster releases. Netflix stock trades at a reasonable forward P/E of around 25.
PayPal (PYPL)
PayPal operates a ubiquitous global digital payments platform with over 430 million active user accounts. Though impacted by e-commerce normalization as consumers shift some spending back to services, PayPal is making big investments in areas like buy now, pay later FinTech and cross-border remittances while implementing cost discipline. The stock trades at an attractive 11x forward earnings.
PubMatic (PUBM)
PubMatic operates an adtech platform enabling digital advertising for publishers. As ad spend continues shifting to digital channels, especially for video, PubMatic is poised to capitalize. The company could also see meaningful upside from increased ad budgets around the 2024 election cycle. PubMatic has over $170 million in cash to fund growth initiatives.
In summary, analysts and investors see strong upside potential for these five growth stocks as key tailwinds persist into 2024. Their leadership positions in AI, semiconductors, streaming video, digital payments, and digital advertising give them competitive advantages to drive sustained expansion. For investors seeking to add high-quality growth exposure, these stocks deserve consideration.