Many growth stocks are valued for what they could one day become rather than where they are today. So, building an investment thesis in a growth stock inherently requires patience.
There are plenty of ways to approach growth stocks, from targeting the "Ten Titans" megacap names to seeking out hidden-gem companies.
Here's why these Fool.com contributors identified ON Semiconductor (ON 6.21%), Centrus Energy (LEU 5.18%), and ASML (ASML 2.66%) as three especially compelling growth stocks to put $1,000 in now.
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This company's best days lie ahead of it
Lee Samaha (ON Semiconductor): It hasn't been an easy year for automotive companies, with interest rates staying higher for longer than many expected. That means the cost of borrowing to buy a car remains relatively higher, and that's not good news for the automotive market, particularly the electric vehicle (EV) market, which tends to have higher-priced vehicles.
In addition, following a previous rush of investment, there are plenty of new EVs on the market and very little profit to show for it. That's bad news for ON Semiconductor, which tends to generate more than half of its revenue from the automotive market, and in particular the EV market with its silicon carbide (SiC) devices. It's a market the company continues to invest heavily in.
As such, it's no surprise the stock has struggled this year. That said, the market appears to be ignoring the fact that it's a highly profitable and cash-generative company trading at less than 15 times estimated free cash flow in 2025.
The case for buying ON Semiconductor stock doesn't just rest on value, though, as it's highly likely its automotive customers will start ramping up spending again at some point, and it also has other growth drivers, such as a partnership with Nvidia to develop technology for the next generation of data centers. It's a stock with a lot of long-term growth opportunity trading at an attractive valuation.
Centrus Energy can power long-term gains as the nuclear renaissance unfurls
Scott Levine (Centrus Energy): At this point last year, growth of the nuclear energy industry in the United States seemed a lot more speculative. Things have changed dramatically, however, with the executive orders that President Donald Trump signed in late May. Investors responded promptly to the growing interest, and Centrus Energy as well as other nuclear energy stocks have soared over the past few months. But there's certainly plenty more growth potential for those with multiyear investing horizons.
Fashioning itself as "the only company currently enriching uranium with U.S.-owned, U.S.-origin enrichment technology backed by an American supply chain and powered by American workers," Centrus Energy is in a prime position to benefit from the strong political interest in turning to U.S. companies to shore up nuclear fuel supply. And this isn't unrealistic conjecture.
In its first-quarter 2025 financial report, Centrus Energy noted that as of March 31, it had a backlog of $3.8 billion, of which its low-enriched uranium (LEU) segment represented $2.8 billion.
For perspective on how robust this backlog is, consider that the company reported total revenue and LEU segment revenue of $73.1 million and $51.3 million, respectively, for Q1 2025.
Data center operators are turning to nuclear energy as a solution for the high power demands of artificial intelligence (AI) computing. Alphabet's Google, for example, is collaborating with Kairos Power to develop about 500 megawatts of advanced nuclear power projects over the next decade. Kairos Power, and other advanced nuclear reactor developers of its sort, require high-assay low-enriched uranium (HALEU) for fuel, and since Centrus Energy is one of the few companies capable of producing HALEU, there's even greater potential for Centrus Energy stock to soar as the industry evolves.
A long-term bet on AI-driven demand for semiconductors
Daniel Foelber (ASML): As a Dutch company, ASML won't show up in a list of S&P 500 or Nasdaq Composite components. But it's exactly the kind of exciting growth stock investors may want to take a closer look at now.
ASML plays an integral role in semiconductor manufacturing by making the machines needed in the photolithography step. This step is arguably the most important because it involves etching circuit patterns onto silicon wafers. Without ASML's extreme ultraviolet (EUV) lithography machines, it would be impossible for large fabs (and ASML's largest customers) like Taiwan Semiconductor Manufacturing to fulfill growing order volumes for artificial intelligence (AI) chips.
Buying ASML is a bet on sustained demand for AI chips. If AI continues to evolve and becomes mainstream across industries, then more and more computing power will be needed to handle increased workloads. ASML would benefit because fabs would have to boost their output by increasing production at existing plants or building new facilities.
ASML stock has been beaten down because the company is coming off of intense comps from AI-fueled demand in recent years and because trade tensions are disrupting market clarity. ASML may be a Dutch company, but the Netherlands is a close U.S. ally that is heavily influenced by U.S. trade policy. China is a huge end market for ASML, and the Netherlands restricts the company from selling its most advanced tech to China in a similar vein as the U.S. restricts Nvidia from selling its most advanced chips.
In short, ASML's near-term results are under pressure, and management has already curbed investor expectations by warning of the possibility of no growth in 2026. But the long-term investment thesis is stronger than ever.
What's more, ASML commands a reasonable valuation and pays a decent dividend to boot -- making it an especially attractive tech stock for investors looking for opportunities in AI without paying a premium price.
