Nvidia and Broadcom are supplying a huge amount of chips to data centers.
Nebius and CoreWeave are building the neocloud.
SoundHound AI has huge potential.
The artificial intelligence (AI) sector is a perfect location to find hypergrowth stocks. Several businesses are delivering incredible results that few other sectors can match.
I have five stocks that investors should consider owning if they're looking for stocks with huge upside. To make this list, these companies need to be growing revenue by 50% or better -- they're that impressive.
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It's hard to imagine that the world's largest company can be listed on a list of hypergrowth companies, but it goes to show how huge the demand for AI processing power is. Nvidia's (NASDAQ: NVDA) graphics processing units (GPUs) continue to be the top choice for AI training and inference, and with new chip generations steadily arriving, that makes it a key company to invest in.
During its fiscal 2026 fourth quarter, which ended Jan. 25, it delivered 73% growth, and management projects a 77% increase in fiscal 2027's first quarter. There isn't a company near Nvidia's size that can match its growth, and with its stock trading at a mere 22.4 times forward earnings, it's a no-brainer investment pick.
Broadcom (NASDAQ: AVGO) could challenge Nvidia's market share in the AI chip space in the near future. It isn't trying to compete directly with it by offering a rival general-purpose GPU; instead, it's designing custom AI chips in collaboration with hyperscalers to tackle highly specific workloads. This optimization increases the cost-performance balance of its semiconductors, which is highly attractive to every AI client.
Although the company's overall growth during its latest reported fiscal quarter was 29%, that's not where investors should be looking. Custom AI chips are a relatively small portion of Broadcom's business now, but management believes they will generate $100 billion in revenue annually by the end of next year.
Wall Street analysts concur with this projection and believe that Broadcom's overall growth will accelerate to 64% for its fiscal 2026 and 50% for its fiscal 2027. Those are impressive figures and demonstrate that it is an excellent hypergrowth stock.
There isn't a faster-growing stock on this list than Nebius Group (NASDAQ: NBIS), a neocloud company that offers AI-focused cloud computing resources to its clients. Nebius and Nvidia are close partners, and the former has a deal in place to obtain access to the latter's cutting-edge AI processors faster than any other customer.
This positioning has led to impressive growth projections. At the end of 2025, Nebius had a $1.25 billion annual run rate. By the end of 2026, management expects that figure to be in the $7 billion to $9 billion range. That's unreal growth, and if it pans out, shareholders will benefit.
CoreWeave (NASDAQ: CRWV) is also a neocloud company that provides GPU-focused computing. It has signed several deals with hyperscalers like Meta Platforms and Microsoft to provide them with computing resources.
While CoreWeave isn't growing as quickly as Nebius, it's still posting impressive results. Wall Street expects a 142% revenue increase this year and 86% growth next year. By 2027, analysts' average projection is for it to reach sales of $23 billion, up from $5.1 billion over the past 12 months. That would be revenue growth of 350% in just two years, easily qualifying CoreWeave as a hypergrowth company.
Lastly, there is SoundHound AI (NASDAQ: SOUN). It's using generative AI for audio recognition, and it has delivered strong results recently. In the fourth quarter, revenue rose 59% year over year.
That growth came mainly from its business in the restaurant industry. However, it is also pursuing opportunities in other sectors like finance, healthcare, and insurance. If it can make a splash in automating the customer service segments of these industries, its growth may explode.
We'll see how SoundHound AI's growth pans out, but if the company does everything it aims for, the stock could be among the best performers on this list.
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Keithen Drury has positions in Broadcom, Meta Platforms, Microsoft, Nebius Group, and SoundHound AI. The Motley Fool has positions in and recommends Broadcom, Meta Platforms, Microsoft, and SoundHound AI. The Motley Fool has a disclosure policy.