Growth stocks have been leading the market higher for much of the past decade, and with artificial intelligence (AI) still looking to potentially be in its early innings, there is a good chance this could be the case for the next 10 years as well.
Let's look at two hypergrowth stocks that have been increasing sales by 40% or more that you can buy this year.
Palantir Technologies
Palantir Technologies (PLTR -0.69%) has transformed itself from primarily a data gathering and analytics contractor for the U.S. government into one of the most important AI companies in the world. Its growth has been nothing short of amazing, with revenue accelerating for eight straight quarters. Last quarter, its revenue jumped 48% year over year to top $1 billion, led by a 93% surge in U.S. commercial revenue.
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The company's growth trajectory changed following the launch of its Artificial Intelligence Platform (AIP), which is now being used by corporations across nearly every major industry.
Instead of building its own large language model (LLM), the company built a platform that makes those models more useful. AIP gathers and organizes a customer's data and maps it to real-world assets and workflows, giving AI models the context they need to make better decisions and avoid AI "hallucinations." This makes AI more useful for real-world applications, which is why the company has been seeing such strong growth.
The company's next big opportunity is with AI agents that can not only make recommendations but can also take autonomous actions within customer guidelines. If Palantir can become a leader in AI agents, its growth could continue to accelerate even more.
The business is firing on all cylinders, but the stock's valuation is very expensive, trading at over 100 times 2025 sales estimates. However, the company is executing better than almost anyone else in the AI software-as-a-service (SaaS) space, and that momentum doesn't look like it's slowing anytime soon.
AppLovin
AppLovin (APP 1.80%) has transformed itself from a niche mobile game developer into one of the most explosive AI adtech platforms in the market. The company's Axon 2.0 engine has completely changed the game by using AI to optimize ad placement, targeting, and bidding in real time.
That shift has sent growth soaring. Last quarter, revenue jumped 77% year over year to $1.26 billion, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) nearly doubled to $1 billion.
What's even more impressive is that the company has also been able to expand gross margins and reduce costs while increasing revenue at this pace, which is a rare combination. Most of this so far has come from mobile gaming, but management is now expanding into e-commerce and web advertising, where the potential market is far larger.
If successful, this could be another huge growth driver. UBS analysts have said that early feedback among web-based advertisers has been positive, with its industry checks showing strong traction with companies testing the platform.
AppLovin is also rolling out a self-serve ad manager that allows more advertisers to directly run their campaigns, a move that could attract more small and mid-size advertisers. The company is expanding internationally, where the majority of gamers live. The combination of new markets and self-serve access could continue to drive strong growth over the next several years.
Short-sellers have tried to challenge the story, but AppLovin keeps delivering strong results quarter after quarter. Regulators have also reportedly asked questions about its data practices, but nothing material has come from it so far, and analysts at Oppenheimer see it more as noise.
If Axon 2.0 proves as effective outside of gaming as it has been inside, AppLovin's stock could still be just getting started.
