5 High-Growth US Stocks Leading the Future of Business
In a digital-first world, technological advancements in businesses are no longer just good-to-have, but a must.
From Artificial Intelligence (AI) infrastructure to e-commerce, innovation is driving the next wave of successful business models.
Against this backdrop, a select group of US companies has emerged as frontrunners of this wave, demonstrating rising profits and highly-scalable business models.
If you aim to catch this wave, here are five US growth stocks worth keeping a close eye on.
Uber has proven itself as a resilient incumbent in the industry despite the extremely competitive rideshare landscape.
One of the main reasons for this can be attributed to its strategic partnerships.
Uber recently announced its collaboration with Nvidia (NASDAQ: NVDA) to develop more sophisticated AI models for its autonomous-driving technology while expanding its operational efficiency.
In the first quarter of 2025 (1Q 2025), Uber's revenue rose 14% year-on-year (YoY) to US$11.5 billion.
This is underpinned by a year-on-year rise in revenue of 15% and 18% for its mobility and delivery segments, respectively.
Uber also showed a 35% year-on-year surge in its adjusted Earnings Before Interest Tax Depreciation and Amortisation (EBITDA).
Uber's adjusted EBITDA performance exhibits strong and healthy earnings performance by Uber.
It also shows its relevance as a platform in the travel and at-home consumption space.In 2Q 2025, Uber's gross bookings are set to grow about 16% to 20% YoY and its adjusted EBITDA by 29% to 35% YoY.
With AI continuing to be the talk of the town, Micron is making strides in solidifying its position in the AI-driven semiconductor chip industry.
For 2Q FY2025, Micron's revenue from its High Bandwidth Memory chips grew more than 50% quarter-on-quarter and its data centre Dynamic Random Access Memory (DRAM) chip revenue reached a record high.
Micron also has a monopoly, being the sole supplier of low-powered DRAM chips into data centres in large quantities.
Micron's newly developed 1-gamma DRAM has also achieved 20% lower power, 15% better performance and over 30% in bit-density as compared to its 1-beta DRAM.This development places Micron in a strategic position to capture the growing demand for memory chips and data centres.
In 2Q FY2025, Micron reported a revenue of US$8.05 billion, a 38% YoY increase and a more than two-fold increase in audited net income of US$1.58 billion from US$0.79 billion in 2Q FY2024.
For 3Q FY2025, its revenue is projected to be between US$8.6 billion to US$9 billion.
Another big player in the AI semiconductor industry is AMD.
Unlike Micron, AMD produces processing units and graphic cards for AI and gaming applications.
For 1Q 2025, AMD announced solid earnings as revenue increased by 36% YoY, along with an increase in net profit of 476% YoY to US$709 million.
For 2Q 2025, AMD projected revenue of between US$7.1 billion to US$7.7 billion.
The company's management also announced a US$6 billion share repurchase programme, demonstrating strong confidence in AMD's growth and ability to generate consistent strong free cash flow.
With the recent frenzy regarding the US tariffs, it may be surprising to see Amazon, an e-commerce giant, on this list.However, in 1Q 2025 the company announced a strong performance with net sales increasing by almost 9% YoY to US$155.7 billion.
Its net profit also increased from US$10.4 billion in the first quarter in 2024 to US$17.1 billion in 1Q 2025.One of the largest contributors was Amazon Web Services (AWS).
The cloud service division's revenue saw an increase of 17% YoY to US$29.3 billion as it is less susceptible to tariff threats.
Amazon is also leveraging AI by partnering with HUMAIN with a US$5 billion investment to develop an innovation hub for AWS AI infrastructure in Saudi Arabia.
Adobe's Creative Cloud and its applications is one of the most recognised tools in the creative industry, from Photoshop to InDesign.
Adobe is also improving its AI products such as Adobe Experience Platform Agent Orchestrator which is used to manage AI agents and create more personalised creative content.
For 1Q FY2025 ending 28 February 2025, Adobe had a record revenue of US$5.7 billion, a 10% YoY increase.
Its net income also increased from US$620 million in 1Q FY2024 to US$1.8 billion in 1Q FY2025.
The best performing segment was that of Digital Media, with a revenue of US$4.2 billion, representing an 11% YoY growth.
Adobe projected that its 2Q FY2025 revenue will be between US$23.3 billion to US$23.55 billion.
As AI and digital innovation continue to redefine the rules of competition, these five companies stand out not just for embracing change — but for turning trends into sustainable growth.
These five US growth stocks are not only adapting to the new digitalised economy; they are helping to shape it.
For investors seeking scalable, future-ready businesses, now is the time to take notice.
Generative AI is reshaping the stock market, but not in the way most investors think. It's not just about which companies are using AI. It's about how they're using it to unlock new revenue, dominate their markets, and quietly reshape the business world. Our latest FREE report 'How GenAI is Reshaping the Stock Market' breaks the hype down, so you can invest with greater clarity and confidence. Click here to download your copy today.
Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses!
Disclosure: Gabriel Lim does not own shares of Uber, Micron, Advanced Micro Devices, Amazon and Adobe.
The post 5 High-Growth US Stocks Leading the Future of Business appeared first on The Smart Investor.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
A Look At The Intrinsic Value Of Spectral AI, Inc. (NASDAQ:MDAI)
Using the 2 Stage Free Cash Flow to Equity, Spectral AI fair value estimate is US$2.30 Current share price of US$2.19 suggests Spectral AI is potentially trading close to its fair value Our fair value estimate is 52% lower than Spectral AI's analyst price target of US$4.79 Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Spectral AI, Inc. (NASDAQ:MDAI) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) -US$8.90m -US$1.80m US$3.70m US$2.90m US$3.30m US$3.60m US$3.87m US$4.10m US$4.31m US$4.50m Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Analyst x1 Analyst x1 Est @ 9.20% Est @ 7.32% Est @ 6.01% Est @ 5.09% Est @ 4.44% Present Value ($, Millions) Discounted @ 7.4% -US$8.3 -US$1.6 US$3.0 US$2.2 US$2.3 US$2.3 US$2.3 US$2.3 US$2.3 US$2.2 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$9.1m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 7.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$4.5m× (1 + 2.9%) ÷ (7.4%– 2.9%) = US$103m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$103m÷ ( 1 + 7.4%)10= US$50m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$59m. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of US$2.2, the company appears about fair value at a 4.9% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Spectral AI as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.4%, which is based on a levered beta of 1.040. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Spectral AI Strength Debt is well covered by earnings. Weakness Shareholders have been diluted in the past year. Opportunity Forecast to reduce losses next year. Current share price is below our estimate of fair value. Threat Debt is not well covered by operating cash flow. Has less than 3 years of cash runway based on current free cash flow. Total liabilities exceed total assets, which raises the risk of financial distress. Not expected to become profitable over the next 3 years. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Spectral AI, we've put together three essential factors you should further research: Risks: Take risks, for example - Spectral AI has 4 warning signs (and 2 which make us uncomfortable) we think you should know about. Future Earnings: How does MDAI's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQCM every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
an hour ago
- Yahoo
The past three years for Sinclair (NASDAQ:SBGI) investors has not been profitable
For many investors, the main point of stock picking is to generate higher returns than the overall market. But its virtually certain that sometimes you will buy stocks that fall short of the market average returns. Unfortunately, that's been the case for longer term Sinclair, Inc. (NASDAQ:SBGI) shareholders, since the share price is down 36% in the last three years, falling well short of the market return of around 57%. Shareholders have had an even rougher run lately, with the share price down 18% in the last 90 days. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, Sinclair moved from a loss to profitability. We would usually expect to see the share price rise as a result. So it's worth looking at other metrics to try to understand the share price move. We note that the dividend seems healthy enough, so that probably doesn't explain the share price drop. However, the weak share price might be related to the fact revenue has been disappearing at a rate of 17% each year, over three years. This could have some investors worried about the longer term growth potential (or lack thereof). The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. This free report showing analyst forecasts should help you form a view on Sinclair When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Sinclair the TSR over the last 3 years was -21%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! We're pleased to report that Sinclair shareholders have received a total shareholder return of 22% over one year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 0.9% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Sinclair (at least 1 which is a bit unpleasant) , and understanding them should be part of your investment process. Sinclair is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
an hour ago
- Business Insider
Most Anticipated Earnings this Week – Week of June 23, 2025
The week ahead holds earnings releases for several market-moving companies, including names such as Micron and Nike, which are of particular interest to many investors. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Here is a list of this week's most anticipated earnings. Click on any ticker to further research the stock and determine whether it's a Buy, ahead of its earnings report. Monday, June 23 – (KBH) Wednesday, June 25 – (GIS), (PAYX), (MU) Thursday, June 26 – (WBA), (NKE)
