DailyBubble believes that growth investors should pay attention to certain growth stocks that may have greater potential than the well-known “Magnificent 7” stocks. While the tech and growth sectors are thriving, there are other profitable and high-growth companies worth considering. Here are three growth stocks that DailyBubble thinks investors should not overlook.
**Advanced Micro Devices (AMD)**
Advanced Micro Devices (AMD) stock has seen some fluctuations after reaching a peak of around $225 per share. Despite being overshadowed by Nvidia, AMD remains a promising player in the chip market. With the company’s focus on AI innovations and the forecasted revenue from its MI300 GPU, AMD is expected to experience substantial growth. Analysts predict a significant market share in AI data center GPUs, supported by competitive pricing. Additionally, AMD’s AI-compatible CPUs for PCs offer promising growth prospects. Leaks suggest that AMD’s upcoming Zen 5 Ryzen 9000 CPUs could outperform current models by 40%, indicating a positive outlook for the company.
**Salesforce (CRM)**
Investing in Salesforce (CRM) stock is influenced by the company’s new emphasis on profit margins and generative AI. Despite falling short of revenue guidance for fiscal 2025, Salesforce’s decision to introduce dividends and share buyback plans signals a good time for investors to consider this stock for the long term. The anticipated revenue growth in 2024, coupled with efforts to improve efficiencies through workforce reductions and a halt in merger exploration, bodes well for Salesforce’s profitability. The company’s subscription-based software services in sales, marketing, e-commerce, and data analytics are expected to benefit from rising corporate digital spending, making Salesforce a top choice in the software market.
**Eli Lilly (LLY)**
Eli Lilly (LLY) has surged more than 130% in 2023, with analysts predicting further upside for the stock. The company’s dominance in the weight-loss drugs market, particularly with the approval of Zepbound, positions Eli Lilly as a key player in this space. Earnings per share are expected to increase significantly, driving potential multiple expansion over time. Demand for Eli Lilly’s weight-loss drug has led to supply challenges for pharmacies, indicating strong demand for the product. While LLY stock may not be cheap, the company’s long-term growth prospects make it a worthwhile investment for investors seeking growth in their portfolios.
In conclusion, DailyBubble sees these growth stocks as having greater potential than the well-known “Magnificent 7” stocks. Investors may find value in considering these companies for their growth portfolios.