The stock market is in an odd place. Tech valuations, from a historical standpoint, look stretched to the breaking point.
Want proof? The average price-to-earnings (P/E) ratio of the "Magnificent Seven" currently stands at an eye-popping 55.5. Still, there are several compelling bargains in today's market.
Here is an overview of two incredible growth stocks I'd buy right now.
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The insurtech revolution nobody's watching
Oscar Health (OSCR -0.34%) is doing something remarkable in the stodgy health insurance industry -- it's actually making customers happy. The company's Net Promoter Score of 66 crushes traditional insurers, who typically score in the teens or twenties. Oscar's members are 3 to 4 times more likely to recommend their health insurance than typical carriers.
Founded in 2012, Oscar brings a Silicon Valley approach to health insurance. Members can video chat with doctors 24/7 for $0. The company's concierge care teams help patients navigate the healthcare maze, finding quality providers and saving money. Oscar's multilingual support and culturally aware care teams help it achieve exceptional member satisfaction across diverse communities.
The growth trajectory validates the model. Oscar now serves over 2 million members across 504 counties in 18 states, with CEO Mark Bertolini guiding toward continued expansion. The company's tech-first approach creates real competitive advantages -- lower administrative costs, better member engagement, and superior health outcomes that reduce medical expenses.
Here's the kicker: Oscar trades at just 14.4 times 2027 projected earnings. That's a remarkably low valuation for a fast-growing insurtech that's disrupting traditional carriers. The market appears to be valuing Oscar like a mature insurer rather than recognizing its tech-first model, superior member experience, and untapped expansion opportunities that should command a growth premium.
The Affordable Care Act marketplace continues expanding, with 24.3 million Americans now enrolled -- more than double the 11.4 million in 2020. Oscar's multilingual support and culturally tailored products position it to capture underserved markets that traditional insurers ignore. As healthcare costs spiral and consumers demand better experiences, Oscar's tech-enabled model positions it perfectly to capture market share from bloated incumbents.
The AI underdog at a discount
Advanced Micro Devices (AMD 0.05%) lives in Nvidia's shadow, but that creates an opportunity for savvy investors. While Nvidia dominates artificial intelligence (AI) chip headlines, AMD quietly builds a compelling alternative that's gaining serious traction with hyperscalers.
The company just pulled forward its MI350 series GPU launch to mid-2025 from the second half, citing better-than-expected development and strong customer demand. CEO Lisa Su claims the MI355X delivers 40% more tokens per dollar than competing solutions -- a massive efficiency advantage for cost-conscious cloud providers running large language models.
AMD's customer list reads like an AI who's who: Meta Platforms, Microsoft, OpenAI, xAI, and Oracle all use AMD's Instinct accelerators. Data center revenue hit $3.9 billion in Q4 2024, up 69% year over year, with the company delivering more than $5 billion of AMD Instinct accelerator revenue for the full year. The company's ROCm software platform continues maturing, with mainstream transformer models regularly tested for compatibility across AMD's supported hardware platforms.
Here's where it gets interesting: AMD trades at 25.5 times 2027 projected earnings versus Nvidia's 29.2 times. You're getting exposure to the same AI infrastructure boom at a 13% discount. That gap should close as AMD proves it can compete effectively in AI training and inference.
The market underestimates AMD's position. Yes, Nvidia leads in AI chips today. But AMD's CPU dominance in data centers gives it unique advantages.
The company can offer integrated CPU-GPU solutions that Nvidia can't match. As AI workloads mature beyond just training large models, AMD's balanced portfolio becomes increasingly valuable.
AMD's annual product cadence now matches Nvidia's aggressive pace. The MI400 series, coming in 2026, promises a complete architectural overhaul. With hyperscalers desperate to reduce their dependence on a single supplier, AMD stands to capture a significant share even if it remains the No. 2 player.
Two growth stories, one theme
Both Oscar Health and AMD attack massive markets with differentiated approaches that the market hasn't fully valued. Oscar brings consumer-friendly technology to hidebound health insurance. AMD offers a compelling alternative in AI infrastructure.
At 14.4 times and 25.5 times 2027 earnings, respectively, both trade at significant discounts to their growth potential. While everyone chases the obvious winners trading at nosebleed valuations, these two stocks offer a compelling risk-reward ratio for patient investors.
