Watching the stock-trading trends over the past couple of years, it's pretty clear that the market loves growth right now, and there are several companies that are currently experiencing outsize revenue growth.
Let's look at two hypergrowth stocks that are growing their revenue at rates topping 40% that might be worth buying this year.
Palantir Technologies
Palantir Technologies (PLTR +2.59%) has been one of the most impressive growth stories in the market, and it may just be getting started. The company has seen its revenue growth accelerate in each of the last eight quarters, soaring 48% year over year in the second quarter.
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The company started out as a data gathering and analytics contractor for the U.S. government, where its solutions were used for mission-critical tasks such as tracking terrorists and COVID-19. However, after growth slowed coming out of the pandemic, the introduction of its Artificial Intelligence Platform (AIP) completely changed its fortunes. Instead of just being a government contractor, AIP put Palantir at the center of AI and led it to become a huge player in the commercial space. Last quarter, its U.S. commercial revenue surged 93% year over year, while its customer count climbed 43%.
Palantir's secret sauce is that AIP has essentially become an AI operating system. Instead of trying to create the next big large language model (LLM), Palantir decided to focus on the workflow and application layers of AI to help make these models more useful in the real world. To do this, AIP gathers a customer's data from a variety of sources and then organizes it into an ontology that maps it out to real-world assets and workflows. This clean, organized data helps reduce AI "hallucinations" and lets third-party AI models give better insights to address real-world problems.
NASDAQ: PLTR
Key Data Points
Today, AIP is being used across a multitude of industries to solve a wide variety of problems. It is the breadth of use cases for which AIP can be applied that makes Palantir such an exciting growth story. The stock's valuation is high, trading at a forward price-to-sales (P/S) ratio of 80 times 2026 analyst estimates. However, AIP is still very early in its adoption phase, and Palantir could grow to become one of the most powerful companies in the world.
Applied Digital
The biggest bottleneck in the AI infrastructure buildout currently is not a lack of AI chips, like graphics processing units (GPUs), it's a lack of access to cheap power. That is what makes Applied Digital's (APLD 2.77%) stock attractive, as the company was originally a Bitcoin miner, which gave it access to large amounts of cheap, stable power.
The company builds and operates data centers that are designed for training AI models and running inference. It offers two primary services. The first is colocation, where it leases out capacity and access to power in its facilities to companies that use their own data center hardware. For example, fast-growing cloud computing company CoreWeave is a big customer and has contracts in place for over $11 billion to lease its facilities. Applied Digital also rents GPUs to customers who don't want to buy their own hardware.
NASDAQ: APLD
Key Data Points
Last quarter, Applied Digital saw its revenue surge 84% year over year to $64.2 million, but given just the size of the CoreWeave contracts, this is only the tip of the iceberg. The company has funding in place and is currently expanding its data center campuses. Its Polaris Forge 1 is already up and running, and it expects it to surpass 1 gigawatt of power between 2028 and 2030, while it's already broken ground on Polaris Forge 2, which it expects will come online in late 2026. Applied Digital says it has a pipeline of 4 gigawatts of power from third parties that have access to power but don't have the expertise in designing high-end data center facilities.
With Nvidia management predicting that the AI data center market could grow to between $3 trillion $4 trillion by the end of this decade, Applied Digital is well positioned to see hypergrowth for many years to come. If it can show solid operating leverage as it scales, the stock could have plenty of upside from here.
