The Best Stocks to Buy With $500 Right Now

Buying top companies that are capitalizing on fast-growing trends and holding them could create wealth for investors in the long run.

That's why if you have $500 to spare right now -- after paying bills, saving for tough times, and clearing high-interest loans -- and are looking to put that money to work in the stock market, it would be a good idea to invest in shares of Ciena (NYSE: CIEN) and Dell Technologies (NYSE: DELL), either individually or combined.

Let's see why these two fast-growing companies could be the best way to invest $500 in the stock market.

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Ciena's stunning earnings growth will be a tailwind for the stock

Ciena stock has shot up a remarkable 435% in the past year. The company's phenomenal surge is driven by the robust demand for its optical networking components, which are used in artificial intelligence (AI) data centers to enable fast connectivity over long distances. As a result, Ciena is receiving more orders than it is fulfilling.

The company reported a 33% year-over-year revenue increase in the first quarter of fiscal 2026 (which ended on Jan. 31, 2026). Its adjusted earnings shot up by 111% to $1.35 per share, driven by a favorable product mix and cost-cutting efforts. The good news for investors is that Ciena is confident it can sustain its terrific growth in fiscal 2026.

It has raised its full-year gross margin guidance by one percentage point. It now expects a stronger jump of 28% in revenue this year to $6.1 billion at the midpoint of its guidance range, up from the earlier expectation of $5.9 billion. Ciena could easily coast past its updated guidance, as its order backlog stood at $7 billion at the end of the previous quarter. The backlog increased by $2 billion in fiscal Q1.

Ciena, therefore, has the potential to achieve the 132% increase in earnings that analysts are expecting from the company this year. Don't be surprised to see this strong growth leading to more upside in this tech stock, making it an ideal investment for growth-oriented investors.

Dell Technologies is stepping on the gas

AI has proven to be a strong catalyst for Dell Technologies, a company traditionally associated with computers, peripherals, and server systems. The booming demand for Dell's AI-optimized servers led to a 39% increase in the company's revenue in fiscal 2026's Q4 to a record $33.4 billion. That was well above Dell's 19% annual revenue growth, which set a record at $113.5 billion.

The company received $46.1 billion in orders for its AI servers last year. It shipped $25.2 billion worth of AI servers in fiscal 2026, a number that it expects to double this year. Dell can easily hit the $50 billion in revenue it expects from AI products in fiscal 2027, given that it ended last year with a $43 billion order backlog.

As a result, don't be surprised to see Dell exceed its fiscal 2027 revenue guidance of $140 billion and earnings growth expectation of 25%. Dell was the largest player in the AI server market in 2024, with a 20% share. Its AI revenue growth rate suggests it is easily outpacing the 34% annual growth that the overall AI server market is poised to clock through 2030.

As this AI stock trades at an attractive 17 times earnings, buying it looks like a no-brainer given its immense growth potential.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ciena. The Motley Fool has a disclosure policy.