It might seem like a daunting time to buy new stocks. The S&P 500 is hovering near all-time highs and trading at historically high valuations, and some unpredictable headwinds -- including tariffs, geopolitical conflicts, and a government shutdown -- could pop that bubble.
But if you have $1,000 to set aside for a least a few years and can look past those near-term challenges, there are still plenty of growth stocks worth investing in. Let's take a look at three of those stocks that could be driven higher by secular tailwinds, even if the broader market crumbles: quantum computing leader IonQ (IONQ 0.46%), ad tech company AppLovin (APP 7.64%), and AI server maker Super Micro Computer (SMCI 0.66%).
Image source: Getty images.
IonQ
IonQ is an early mover in the nascent quantum computing market. Unlike traditional computers, which store their data in binary bits of zeros and ones, quantum computers can store zeros and ones simultaneously in qubits. That difference enables them to process larger amounts of data and certain types of calculations at a much faster rate.
Yet quantum computers are still pricier, bigger, and consume a lot more power than traditional servers and mainframes. They also output a higher percentage of errors. To address those shortcomings, IonQ develops quantum processing units (QPUs) which trap ions within electromagnetic fields so they can be manipulated by lasers to achieve a quantum state. Unlike older electron-driven systems, which accelerate electrons within cryogenically cooled "superloops" to perform quantum calculations, IonQ's QPUs don't need to be refrigerated. That key difference could make them more scalable than electron-based quantum computing systems.
IonQ sells three tiers of quantum systems and serves up its computing power as a cloud-based service. From 2024 to 2027, analysts expect its revenue to grow at a CAGR of 94% as it sells more systems and locks more customers into its cloud-based services. It won't turn profitable anytime soon and its stock isn't cheap at 66 times its 2027 sales -- but it might grow into that premium valuation as its computing power increases and the quantum computing market expands.
AppLovin
AppLovin was once a mobile game publisher, but it built an advertising business by buying the mobile ad tech company MoPub and the connected TV advertising company Wurl. It also launched the AI-powered Axon ad discovery platform in early 2023.
Over the past few years, AppLovin's advertising business flourished as it helped more mobile developers monetize their apps. That robust growth offset the slower growth of its mobile gaming business, which it sold to Tripledot Studios for about $800 million this July.
That divestment will free up more resources for AppLovin to upgrade Axon's mobile advertising tools, expand its advertising ecosystem into non-gaming markets (like e-commerce marketplaces and connected TV platforms), and launch a new self-service platform that will help advertisers manage their own ad campaigns.
From 2024 to 2027, analysts expect AppLovin's revenue and earnings per share (EPS) to grow at a CAGR of 25% and 56%, respectively, as those tailwinds kick in. Its stock isn't a bargain at 50 times next year's earnings, but its entrenched position in the AI-powered ad tech market could support that higher multiple and drive its stock even higher.
Supermicro
Super Micro Computer, more commonly known as Supermicro, sells servers for data centers. It controls a much smaller slice of that market than Hewlett Packard Enterprise and Dell Technologies, but it primarily develops dedicated AI servers powered by Nvidia's GPUs and its own liquid cooling systems. It controlled about 9% of the nascent AI server market last year, according to ABI Research.
Last year, Supermicro struggled with a delayed 10-K filing, the abrupt departure of its longtime auditor as it faced accounting issues, delisting threats, and regulatory probes. But it eventually hired a new auditor, filed its overdue annual report, avoided a delisting, and seemingly placated the government regulators.
From fiscal 2025 (ended this June) to fiscal 2028, analysts expect Supermicro's revenue and EPS to grow at a CAGR of 29%. That growth should be driven by brisk sales of its newest systems (which run on Nvidia's top-tier Blackwell Ultra chips), the increased adoption of its modular "building block" systems that can be quickly integrated into existing hyperscale cloud deployments and AI clusters, and the competitive advantages of its liquid-cooled systems.
The explosive growth of the AI market should also help Supermicro secure more contracts. Its stock looks reasonably valued at 24 times this year's earnings, and it still has a lot of upside potential.
