So you've got $1,000 (or $10,000 or $50,000) burning a hole in your pocket -- and you want to invest in some growth stocks. Great! Remember that it's best to spread your dollars across a bunch, so as not to have too many eggs in any one basket. (Our Foolish investing philosophy suggests buying into around 25 or more companies and aiming to hang on to your shares for at least five years.)
Here are four growth stocks to consider now.
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1. Taiwan Semiconductor Manufacturing
Why invest in Taiwan Semiconductor Manufacturing (NYSE: TSM)? There are lots of reasons. For one thing, while most semiconductor companies only design chips, Taiwan Semiconductor (TSMC) is among the relatively few companies that actually manufacture them -- and it's the world's largest enterprise that does so, with a market share recently at 65%.
TSMC has grown to a recent market value topping $1 trillion, in part due to technological prowess and also because it's fueling the growth of artificial intelligence (AI) by supplying the critical chips. In its fourth quarter, revenue grew by nearly 39% year over year while net income rose 57%. The company also pays a dividend, which recently yielded 1.3%. That may not seem like a lot, but TSMC's payout has nearly doubled over the past five years.
It's fair to worry about the company's stability, as it's based in Taiwan and vulnerable to interference from China. But note that there's now a TSMC fabrication plant in Arizona, which is performing even better than plants in Taiwan. The company's shares are reasonably priced with a recent price-to-earnings (P/E) ratio of 31, below the five-year average of 33.
2. Microsoft
You may know Microsoft (NASDAQ: MSFT) for its dominant Office 365 suite of applications, but there's much more to it. It's also home to the major Azure cloud computing platform, the Xbox gaming platform, and the Windows operating system, among many other products and services.
Microsoft is already huge, and it's getting bigger, in part due to tailwinds such as the spread of AI and the proliferation of cloud computing. Its market value recently topped $3 trillion, and in its first quarter of fiscal 2025, revenue jumped by 16% while net income rose 11%.
With its recent forward-looking price-to-earnings (P/E) ratio of 33 a bit above its five-year average of 31, Microsoft is reasonably valued. It's also a dividend payer, with a recent yield of 0.8%. That may not be terrific, but it's been growing briskly. Microsoft's annual payout was recently $3.08, up from $2.09 in 2020 and $1.29 in 2015.
3. Sea Limited
Sea Limited (NYSE: SE) is not a household name, at least in the U.S. Based in Singapore, it's a major player in the digital entertainment, e-commerce, and digital financial services realms, serving populations in Asia. The stock has been volatile, but in 2024 it surged more than 160%. Despite that, it still appears reasonably valued, with a recent price-to-sales ratio of 4.5 that is roughly equal to its five-year average.
In its third quarter, Sea Limited posted a year-over-year revenue gain of nearly 31%, topping analyst estimates. Net income was $153 million, much better than the year-earlier loss of $144 million.
4. Advanced Micro Devices
Then there's Advanced Micro Devices (NASDAQ: AMD), a semiconductor company recently valued near $200 billion. Like Nvidia, it's cranking out lots of chips to power AI operations. The company is facing some headwinds, though, such as weak demand for its gaming chips. But its data-center chip business is booming.
Worries about slowing growth have depressed the stock by about 24% over the past year, and this presents a nice opportunity for long-term believers in AMD. With its recent forward P/E of 24 below its five-year average of 33, the stock is reasonably to attractively valued.
These four companies are intriguing, but they're not the only great growth stocks around. And remember, too, that you can also rack up great gains by investing in some high-powered growth ETFs.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
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Selena Maranjian has positions in Advanced Micro Devices, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Microsoft, Nvidia, Sea Limited, and Taiwan Semiconductor Manufacturing. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
