Nvidia, Broadcom, and Palantir Technologies have been some of the hottest growth stocks to own in recent years.
Their businesses have been booming due to artificial intelligence.
Their shares have risen between 550% and 1,200% over the past five years.
The big appeal with investing in growth stocks is for the potential upside they possess. Dividend stocks may offer safety and dividend income, but if you're looking for big returns, you'll want to own growth stocks.
It's not always obvious which growth stocks will flourish, and that's why it can be a good move to invest in several of them. Five years ago, ChatGPT wasn't the household name that it is today. Generative artificial intelligence (AI) wasn't on the horizon, promising to revolutionize industries. It's here today, and it's a game changer that has helped many stocks soar.
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Three growth stocks that have been among the biggest winners over the past five years are Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Palantir Technologies (NASDAQ: PLTR). If you invested $10,000 into each of these stocks five years ago, your portfolio would be worth over $260,000 right now. Here's how much these stocks have soared since then, why they've done well, and whether they are still good buy today.
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Chip giant Nvidia has been leading the AI revolution. Its GPUs have been critical for companies developing AI models, and it has surged as a result of unprecedented demand for its products in recent years. While its growth rate has slowed, it was still as high as 73% in its most recent quarter.
In the past five years, the stock has risen by close to 1,200% (returns are as of the end of April 7). A $10,000 investment in the company five years ago would now be worth around $126,000. The rally has made it the most valuable company in the world, with its valuation sitting at roughly $4.4 trillion today.
The bad news with Nvidia's stock is that at such a high price tag, generating these types of returns again just isn't likely. But the good news is that it still dominates the chip market, and at a forward price-to-earnings (P/E) multiple of 22, the stock isn't expensive. It can still be a good buy right now -- you may just want to temper your expectations as to how much higher it can go.
Another chip stock that's been doing well due to AI is Broadcom. It has been working closely with hyperscalers that have been developing their own custom chips for AI, as companies look for alternatives to Nvidia's high-priced chips. Business has been booming for Broadcom, with its revenue in its most recent fiscal year (which ended Nov. 2, 2025) totaling just under $64 billion -- nearly double what it was just a few years earlier.
Shares of Broadcom have soared more than 590% in five years, and they would have turned a $10,000 investment into more than $69,000 today. Amid its ascent in value, its market cap has climbed to around $1.6 trillion, making it among the largest tech companies in the world.
Broadcom's stock trades at a forward P/E of 28, making it a bit pricier than Nvidia. As a long-term investment, it's still a promising option, but there is some added risk here because of its reliance on strong demand from hyperscalers. If there's a slowdown in AI spending, that could hurt its growth rate and impact the premium investors are willing to pay for the stock.
The only stock that isn't a chipmaker on this list is Palantir Technologies. Instead, the data analytics stock has been a hot buy due to its AI platform, which has helped companies find and take advantage of efficiencies. It has close relationships with government agencies, but business has been booming in all areas. CEO Alex Karp routinely boasts of the company's high Rule of 40 score (it was at 127% in the most recent quarter), which factors in not only revenue growth but also adjusted earnings into its calculation.
Palantir's stock has risen by nearly 560% in five years, and a $10,000 investment in the company would now be worth approximately $65,000. While that's the lowest return on this list, it's still incredibly impressive. In total, a portfolio of these three stocks would now be worth more than $260,000 (assuming you invested $10,000 into each of them).
The problem with Palantir is that its stock may have rallied too much for it to be a good buy right now. While it is profitable and sales have been soaring, it trades at more than 230 times its trailing earnings. And even its forward P/E is well over 100. At such a steep premium, buying Palantir's stock can leave you vulnerable to a sell-off in the future. It's the only stock on this list I wouldn't buy.
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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.