What does it take to qualify as a growth stock? Probably the most important criterion is that the stock must be expected to grow significantly faster than the overall market. That definition weeds out a lot of stocks.
However, there's a problem. It's not always easy to determine which stocks are most likely to beat the market. I think, though, that several stocks have what it takes. Here are my picks for three of the smartest growth stocks to buy right now with $1,000 (listed by share price in descending order).

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1. Vertex Pharmaceuticals
You might think Vertex Pharmaceuticals (VRTX -2.46%) is an unlikely candidate for this list after the biotech stock plunged following its second-quarter update. I have a contrarian view, though: The sell-off makes Vertex even more attractive with its share price below $400.
Vertex didn't report dismal Q2 results, by the way. Instead, the company announced two pipeline updates that disappointed investors. Experimental pain drug VX-993 failed to meet the primary endpoint of a phase 2 study, resulting in Vertex deciding against advancing it into pivotal testing. Also, the U.S. Food and Drug Administration (FDA) told the company that there isn't a path forward for a broad label in peripheral neuropathic pain (PNP) for suzetrigine.
I think the sell-off was overdone considering how much Vertex has going for it. The company's cystic fibrosis (CF) franchise remains strong. The commercial launch of non-opioid pain drug Journavx is going so well that Vertex is expanding its marketing efforts. Meanwhile, the biotech company is prioritizing diabetic peripheral neuropathy as the next indication for the drug and is initiating a second phase 3 study.
There's more. Vertex is on track to file for regulatory approvals of zimislecel in treating severe type 1 diabetes next year, pending positive phase 3 results. It also hopes to file for accelerated approval in the U.S. for povetacicept in treating IgA nephropathy, a kidney disease, assuming all goes well with an interim analysis of a phase 3 study. The company's chances for both programs succeeding in late-stage trials appear to be pretty good.
2. Nvidia
You could argue that Nvidia (NVDA 1.05%) is priced at a premium and faces increasing competition, including from some of its top customers. However, the fact remains that the company's growth story and dominance in the AI chip market are simply too good to ignore.
There was a common theme in the recent quarterly updates of several of the biggest tech giants. They're all continuing to invest heavily in data centers to support AI demand. It doesn't take an investing genius to realize this is great news for Nvidia, because its GPUs are still the gold standard in training and deploying AI models.
The company's Blackwell GPU architecture has extended its market lead. Even more powerful chips are on the way, with Nvidia now on an annual cadence of rolling out new products.
Nvidia's AI opportunities aren't limited to data centers, though. The company has massive opportunities in robotics and self-driving cars over the next several years. Another significant pullback in the stock would present a fantastic buying opportunity, but I'm not sure if we'll see one anytime soon. The stock is trading under $200 at the moment.
3. Alibaba Group Holding
If you want to invest in AI on the cheap, Alibaba Group Holding (BABA -0.50%) just might be the best game in town. Its shares trade at roughly 14 times forward earnings. That's only a fraction of the forward earnings multiples for the company's U.S. counterparts.
Of course, Alibaba isn't in town or even in the U.S.; it's headquartered in China. The company's China connection is a big reason behind its attractive valuation. Some investors fret that the Chinese government could interfere with Alibaba's business. They're also worried about export restrictions on U.S. AI chips (especially Nvidia's).
Those are valid concerns. However, the Chinese government wants to succeed in AI -- and it needs Alibaba's cloud unit to succeed to make that happen. Meanwhile, innovative Chinese companies such as DeepSeek could make it easier for Alibaba to host powerful AI apps even if it can't buy the more powerful U.S. chips. Alibaba is currently trading under $150 per share.
Could high U.S. tariffs on Chinese imports hurt Alibaba? Indirectly, yes. However, I think this stock has plenty of room to run regardless of trade challenges.