Technology has become a major part of our lives, and the surge in demand for digitalization and cloud computing has connected more people and organizations across the world. The emergence of artificial intelligence (AI) has made our lives easier by enabling rapid data analysis to gain insights. To benefit from this technology boom, you should look for fast-growing growth stocks that you can buy and hold to ride on this trend.
Here are three promising stocks that can enable you to accelerate the growth of your investment portfolio.
Image source: Getty images.
1. Adobe
Adobe (ADBE 2.02%) is a software company providing cloud solutions for designers and document creators. The company's Document Cloud, Creative Cloud, and Experience Cloud contain a wide array of tools that can be used for design, photography, and video editing.
Adobe's software-as-a-service (SaaS) business model enabled it to consistently grow its revenue and net income, as shown in the table. Investors should note that fiscal 2024 contained a one-off breakup fee of $1 billion for the aborted merger with Figma; otherwise, operating and net income would have been much higher. Free cash flow has also trended upwards in line with the increase in net profit.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $17.6 billion | $19.4 billion | $21.5 billion |
| Operating income | $6.1 billion | $6.7 billion | $6.7 billion |
| Net income | $4.8 billion | $5.4 billion | $5.6 billion |
| Free cash flow | $7.4 billion | $6.9 billion | $7.9 billion |
Data source: Adobe. Fiscal years end Nov. 30.
Adobe posted record revenue of $5.7 billion for the first quarter of 2025, up 10.3% year over year. The company saw operating profit rise 13.4% year over year to $2.2 billion after adjusting for the $1 billion Figma breakup fee. Adjusted net income rose nearly 12% year over year to $1.8 billion. Free cash flow soared, more than doubling year over year to $2.5 billion.
Management expects fiscal 2025's revenue to come in between $23.3 billion to $23.55 billion, representing year-over-year growth of between 8.3% to 9.5%.
NASDAQ: ADBE
Key Data Points
Adobe intends to accelerate its growth through the launch of innovative new features, as outlined during its recent Adobe Summit. The company is utilizing AI by incorporating its Firefly AI agent into its solutions to address the need for streamlined workflows across creators, agencies, and organizations. Adobe's focus will be on acquiring new users using a freemium model and increasing the value it offers to customers.
With AI being a major part of its growth plan, Adobe recently showcased its new Firefly app featuring AI-assisted content ideation, creation, and production. Its Adobe Express product also saw new capabilities announced for editing and generating video footage to help transform static displays into dynamic videos. These innovations, along with Adobe's focus on widening its customer pool, should see the software company continue to grow its top and bottom lines.
2. Innodata
Innodata (INOD 13.97%) is a data engineering company that helps enterprises to incorporate AI into their systems by providing a suite of transferable solutions and platforms for generative AI builders and adopters. The company recorded breakneck growth in its top line and just broke even in 2024, as shown in the table. Free cash flow also turned positive back in 2023 and has grown sharply in 2024.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $79.0 million | $86.8 million | $170.5 million |
| Net income | ($11.9 million) | ($0.9 million) | $28.7 million |
| Free cash flow | ($7.7 million) | $0.34 million | $27.3 million |
Data source: Innodata. Fiscal years end Dec. 31.
Growth continued to accelerate in the first quarter of 2025. Innodata reported revenue of $58.3 million, more than double that of the $26.5 million in the prior year. Net income leapt from $989,000 to $7.8 million for the quarter. Free cash flow continued its climb, surging 57% year over year to $8.5 million. Innodata signed on major new customers while expanding its relationship with existing ones, thereby contributing to this strong performance.
NASDAQ: INOD
Key Data Points
Management is confident of further growth as global technology companies are committing billions of dollars to large language model (LLM) strategies. These investments ensure that generative AI solutions will continue to improve, thereby increasing the demand for such solutions to be incorporated into organizational workflows.
Innodata believes that all successful companies will incorporate AI in a decade, and the federal government represents an opportunity for growing its customer base. Consultancy firm McKinsey believes that generative AI could potentially add $4.4 trillion in productivity improvements from corporate use cases. Innodata has identified a market opportunity of $219 billion this year, which is growing at a staggering 45% per year to eventually reach $1.36 trillion by 2035. Needless to say, this rapid growth presents a significant opportunity for Innodata to continue to grow its business for the foreseeable future.
3. Palantir Technologies
Palantir Technologies (PLTR 2.16%) is a software company specializing in data analytics, providing governments and corporates with software solutions that deliver valuable insights. Strong demand for Palantir's services saw the software company post strong growth in revenue from 2022 to 2024, with the business turning profitable in 2023. Not only has net income continued its upward march, but free cash flow has also increased strongly, as shown in the table.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $1.9 billion | $2.2 billion | $2.9 billion |
| Operating income | ($161.2 million) | $120.0 million | $310.4 million |
| Net income | ($373.7 million) | $209.9 million | $462.2 million |
| Free cash flow | $183.7 million | $697.0 million | $1.1 billion |
Data source: Palantir. Fiscal years end Dec. 31.
The company reported continued strong growth in the first quarter of 2025. Revenue climbed 39% year over year to $883.9 million, while operating income more than doubled year over year to $176 million. Net income shot up 103% year over year to $214 million. Free cash flow also jumped to $304 million, significantly higher than the $127 million reported in the previous corresponding period.
NASDAQ: PLTR
Key Data Points
Total customer count continued climbing, reaching 769 at the end of the first quarter of 2025, up 39% year over year. Of this, 622 were commercial customers, posting a 46% year-over-year growth rate. Palantir sealed 139 contracts worth at least $1 million each, and out of these contracts, 31 were worth at least $10 million each.
For 2025, Palantir expects revenue to be between $3.89 billion to $3.902 billion, representing year-over-year growth of around 36%. Analysts expect free cash flow to improve further, to between $1.6 billion and $1.8 billion.
The company continued to announce collaborations that are key to further growing its revenue and profits. In May, Palantir formed a partnership with the Joint Commission to revolutionize the collection and utilization of data from healthcare institutions. TWG Global, along with Palantir and xAI, announced a collaboration to help financial service providers successfully adopt and scale AI across their organizations.
