2 Growth Stocks to Buy With $200 and Hold Forever

Source The Motley Fool

Key Points

  • Unity is in the middle of a turnaround, and growth is just around the corner.

  • AMD is winning market share and building a massive artificial intelligence (AI) chip business.

  • Both growth stocks are under $200 per share.

  • 10 stocks we like better than Unity Software ›

You don't need much money at all to invest in some of the best growth stocks available. If you've got $200 and are ready to put it to work in the stock market, Unity Software (NYSE: U) and Advanced Micro Devices (NASDAQ: AMD) look like solid bets. Unity is on the cusp of a return to growth, and AMD is stealing market share from its biggest rival.

A dollar sign.

Image source: Getty Images.

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

1. Unity Software: Staging a comeback

Video game engine developer Unity has reached an inflection point, according to CEO Matthew Bromberg. The company's accelerated pace of development, its work to regain trust after the Runtime Fee debacle, and its artificial intelligence (AI)-powered Vector ad platform have brought the company close to a return to growth. Overall revenue was still down slightly in the second quarter, but things are moving in the right direction.

Unity's Create Solutions segment, which includes its game engine, grew revenue in the second quarter, thanks to a large customer win and an increase in subscription revenue. The Grow Solutions segment, which focuses on advertising, shrank slightly. However, Unity Ad Network grew revenue by 15% compared to the first quarter, thanks to the new Vector platform, which was offset by weakness in other areas.

In the third quarter, Unity expects its Grow Solutions segment to report mid-single-digit revenue growth compared to the second quarter, a sign the Vector platform is gaining traction. Create Solutions will be weaker due to the large customer win in the second quarter that won't be repeated. Overall revenue is expected between $440 million and $450 million, up from the second quarter at the midpoint.

Unity may not look like much of a growth stock right now, but the company has all the pieces in place to become a long-term winner. The Unity game engine is widely used across the video game industry, and switching costs are significant. On the advertising side, the Vector platform aims to fix issues that have plagued that part of the business for years.

As Unity gets back on its feet, now's a great time to buy stock.

2. AMD: A force in CPUs and AI

AMD still finds itself in a second-place position behind Intel in the PC and server CPU markets, but the company has gained an incredible amount of ground thanks to good products and Intel's various issues. AMD managed a 27.3% unit share and a 41% revenue share in the server CPU market during the second quarter of 2025. Eight years ago, Intel had a near-monopoly.

A similar story has played out in the PC CPU market. AMD managed a 32.2% unit share of the desktop CPU market and a 20.6% unit share of the notebook CPU market, both of which are up dramatically over the past decade. The company's Ryzen CPUs have been winning over consumers as Intel struggled with stability issues for its Raptor Lake chips and later a lackluster launch for Arrow Lake.

Outside of CPUs, AMD has built a solid AI accelerator business as well. The company is still far behind market leader Nvidia, but its Instinct data center GPUs are now a multibillion-dollar annual revenue business. The company sees this as a long-term opportunity as AI chip demand continues to explode, with the potential for tens of billions of dollars in annual revenue down the road.

AMD faces a few risks. First, Intel under its new CEO could become more aggressive and put pressure on AMD's CPU businesses. Second, if the AI boom starts to fizzle out, the AI accelerator business may not be as lucrative in the long run as the company is assuming. However, even with those risks, AMD is a much stronger company than it was even five years ago, and it should continue to thrive in the years ahead.

Should you invest $1,000 in Unity Software right now?

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*Stock Advisor returns as of August 18, 2025

Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Unity Software. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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