2 Growth Stocks to Invest $1,000 in Right Now

Key Points

• Twilio and ASML have both witnessed a nice acceleration in growth thanks to AI.

• These stocks are trading at attractive levels despite clocking impressive gains recently.

• Their growth potential makes them worth buying and holding on to for the long run.

• 10 stocks we like better than Twilio ›

The stock market has gained impressive momentum of late following a difficult start to the year, with the tech-laden Nasdaq Composite index rising an impressive 32% in the space of just three months.

Tech stocks are back in investors' good books once again after enduring a difficult time in early 2025, when tariff-related concerns and geopolitical tensions weighed on the sector. One reason tech stocks are rising once again is because of strong results from the major names in this sector.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

In fact, the tech stock rally is the reason why the Nasdaq Composite has outpaced the 24% jump in the S&P 500 index during the same period. Tech stocks tend to outperform the broader market because of their ability to capitalize on disruptive trends. So buying solid technology companies could help investors get rich in the long run.

If you have $1,000 in investible cash right now, it would be a good idea to put that money into the two names discussed below, either individually or combined, as they can turn out to be top growth stocks in the future.

Image source: Getty Images.

1. Twilio

Cloud communications provider Twilio (NYSE: TWLO) has been a solid investment in the past year, turning $1,000 into more than $2,100 as of this writing. The stock has gained such impressive momentum thanks to an acceleration in growth that's fueled by the adoption of its artificial intelligence (AI)-focused communications tools.

Twilio provides application programming interfaces (APIs) that help its clients reach their customers through various channels such as messaging, email, voice, video, and others. Its APIs help deliver alerts and notifications, set up interactive voice response systems, and create marketing campaigns as well. Twilio is now enhancing its solutions with AI.

Twilio's clients can now use its AI tools to provide their customers with personalized recommendations, create virtual AI agents to automate tasks, and also build voice AI agents, among other things. Importantly, Twilio's AI tools are gaining traction. Management pointed out on the company's May earnings conference call that "customers that engaged with our AI assistant were 3x more likely to upgrade from a free trial to a paid account."

What's more, Twilio is not only landing new customers but is also winning more business from existing customers. Twilio's dollar-based net expansion rate of 107% in the first quarter increased by 5 points as compared to the year-ago period. This metric is calculated by dividing Twilio's revenue from active customer accounts at the end of a quarter by the revenue from that same customer cohort in the year-ago period.

So, a dollar-based net expansion rate of more than 100% is proof that existing customers are adopting more of its offerings, or they are using Twilio's existing solutions more. Twilio also added 22,000 active customer accounts in the first quarter of the year, so the company is now sitting on a huge customer base that could open a solid cross-selling opportunity that should boost both its top- and bottom-line growth.

Twilio's earnings shot up by 42% year over year in the first quarter, and it raised its full-year guidance for non-GAAP income from operations by $25 million to a range of $850 million to $875 million. As such, it is easy to see why analysts have been upgrading their earnings growth expectations.

TWLO EPS Estimates for Current Fiscal Year data by YCharts

The chart above suggests that Twilio's growth is on track to accelerate in the future. That makes the stock a solid buy right now since it is trading at 27 times forward earnings, which is a discount to the tech-heavy Nasdaq-100 index's average forward earnings multiple of 29. Putting $1,000 into Twilio could turn out to be a smart long-term move as the company seems capable of flying higher even after clocking impressive gains in the past month.

2. ASML Holding

Semiconductor giant ASML Holding (NASDAQ: ASML) has jumped an impressive 31% in the past three months on account of the broader market rally. Even then, shares of the company are now trading at an attractive 28 times forward earnings. Buying ASML at this valuation may turn out to be profitable in the long run since the company is on track to capitalize on the secular growth of the semiconductor market.

ASML's lithography machines help chipmakers and foundries to print patterns on silicon wafers, thereby creating the foundation for manufacturing chips. McKinsey points out that semiconductor manufacturers across the globe plan to invest $1 trillion in new chip fabrication plants, which should create the need for more of ASML's machines.

Not surprisingly, market research firm TechNavio sees an incremental revenue opportunity worth $34 billion in the lithography systems market through 2028. ASML is the only company that produces extreme ultraviolet lithography machines, which are used for manufacturing advanced chips that go into various AI applications. It also has a 90% share in deep ultraviolet lithography systems, which are used for producing chips based on more mature nodes deployed in applications such as manufacturing.

ASML's moat is the reason analysts have become bullish about the company's earnings growth prospects going forward.

ASML EPS Estimates for Current Fiscal Year data by YCharts

Also, the company indicated on its April earnings conference call that its results could be at the higher end of its expectations on the back of healthy AI-driven semiconductor demand and the new capacity that its customers are expected to bring online. That looks likely considering the massive investments in semiconductor manufacturing capacity as discussed earlier, along with the fact that ASML supplies its equipment to leading foundries such as Taiwan Semiconductor Manufacturing, Intel, and Samsung.

All this indicates that ASML is indeed capable of delivering the bottom-line improvement that analysts are expecting from it. So there is a good chance that it could be rewarded with a premium valuation thanks to its improved earnings power, and that could translate into healthy stock market gains.

Should you invest $1,000 in Twilio right now?

Before you buy stock in Twilio, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Twilio wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $687,764!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $980,723!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 7, 2025

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Intel, Taiwan Semiconductor Manufacturing, and Twilio. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.