Growth stocks have been some of the best-performing investments over the last few years, but 2025 brought some challenges for growth investors. The increased volatility from growing global trade tensions and economic uncertainty hasn't been kind. Nonetheless, the S&P 500 Growth index has managed to eke out some outperformance of the S&P 500 index over the last month or so.
With more downside from factors like tariffs priced into many growth stocks now compared to the beginning of the year, there could be room for them to continue outperforming through the rest of the year and beyond. Still, investors should remain mindful to be sure they're getting good value for the price they're paying. You can still overpay for a great growth stock.
Importantly, you don't need a lot of money to get started with investing. Even if you have just $100 available to invest, you can buy shares in any of the following three great growth stocks that could outperform over the coming years.
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1. Marvell Technology
Marvell Technology (MRVL 4.90%) is a chip designer that's been a big beneficiary of the growth in artificial intelligence spending. There are two primary areas where Marvell's business benefits from the strong growth in generative AI infrastructure: its custom AI accelerators and its networking chips.
Marvell is the company behind Amazon's Trainium 2 custom AI accelerator, and it recently won Amazon's Inferentia order to make its custom AI inference chips. It also works with the three other hyperscalers (Microsoft, Alphabet, and Meta Platforms) for various data center chip designs, including Microsoft's Maia AI accelerator.
Marvell's stock has been beaten down over concerns about hyperscalers working with other chip designers, like AIchip. However, management reported that it secured deals wth both Amazon and Microsoft to design their next-generation AI accelerators during the company's first-quarter earnings call. That said, given the demand for custom silicon, it's not unreasonable to see one or both of them use a secondary source to supplement Marvell.
Marvell also makes networking chips, and it holds a particular advantage in optical modules that transfer data using light. Marvell's chips enable servers to communicate data with each other faster, increasing the efficiency of each cluster's performance. As data centers and clusters grow bigger and bigger, demand for Marvell's networking chips stands to grow considerably.
Marvell stock trades for around $65 per share as of this writing. That gives it a forward P/E of just 23, which is an exceptional value considering the growth prospects ahead of it. While the growing reliance on a few select customers makes the company risky, it looks secure in its ability to hold onto those customers and grow its business. And given the price, there's less downside to the stock than just a few months ago when it traded at more than twice the price.
2. Block
Block (XYZ 2.23%) is the company behind Cash App and Square. It disappointed investors recently due to a shortfall in Cash App's gross profit growth in the first quarter. But the recent sell-off could be a great opportunity for growth investors.
Cash App aims to increase revenue per user through growing spend on the Cash Card (where it collects interchange fees) and expanding the number of services its users engage with in the app. The more services a user takes, the more likely they are to stick with the app. Its most recent service is Cash App Borrow, which gives users small, short-duration loans. The new product could help address the core issue leading to disappointing results for Cash App last quarter: a slowdown in spending.
That result speaks to the more vulnerable nature of Cash App's core users. In an economic slowdown, Cash App users may be the first to cut back on spending. Major credit card networks notably didn't see a slowdown last quarter.
The Square side of the business remains a leader in onboarding small businesses. It's focused on several core verticals, including restaurants, beauty, and services businesses. That's enabled it to build out a core software stack that makes it easy for small businesses to get up and running on its platform and start transacting. That's produced predictable growth and return on customer acquisition spending as it continues to grow its share of the microbusiness market while working to move upstream to bigger businesses.
Block's current share price of around $63 is just 16.5 times analysts' estimates for 2026 earnings. While Block is expected to see an earnings dip this year, it should quickly recover in 2026, surpassing 2024 earnings. While short-term economic uncertainty has weighed on the stock (as it should), the long-term outlook remains strong thanks to its growing ecosystem and the network effect driving customer growth and retention.
3. DraftKings
DraftKings (DKNG 6.17%) is one of the largest sports betting companies in North America. The company successfully leveraged its brand in Daily Fantasy Sports to rapidly expand into sports betting after a Supreme Court ruling legalized it in 2018.
That brand strength gives it a significant advantage in the sports betting market. That's seen in its ability to attract about 400,000 new monthly unique payers to its platform over the past year despite increased competition from well-known brands like ESPN and Fanatics.
But the growing popularity of DraftKings creates a second advantage for the business: more and better user data. Data is an extremely valuable asset in sports betting. Better data means more accurate and up-to-date money lines, more personalized and effective promotions, and faster expansion into new bet types, like in-game parlays. It can also help identify sharp bettors and mitigate the losses the sportsbook makes, and identify acquisition opportunities like DraftKing's recent Jackpocket purchase.
DraftKings faces potential headwinds from lawmakers and regulators. Illinois recently passed a new tax law requiring sportsbooks to pay $0.25 per bet for the first 20 million bets and $0.50 per bet thereafter. DraftKings may be better positioned to absorb taxes like that than smaller sportsbooks with less regional coverage. DraftKings can shift its marketing focus to friendlier states where it can generate better profit margins.
DraftKings did lower its revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) expectations alongside its first-quarter earnings report. Still, at just $34 per share, the stock trades for an enterprise value-to-forward-EBITDA ratio of about 21 based on management's outlook for 2025. Management's long-term outlook calls for an average EBITDA growth of 35% for 2026 through 2028 based on its 2025 outlook. That makes the current price a great value for growth investors.
