3 Non-AI Growth Stocks That Have Massive Upside

Artificial intelligence (AI) stocks have generated massive returns for investors in recent years. But they've also become expensive along the way, and investing in them today may not be nearly as enticing as it was even a year or two ago, when their valuations were more modest.

There's risk with AI stocks, even top names such as Nvidia, because any hint of a slowdown in business could wreak havoc on their share prices.

For investors who want some enticing growth stocks to buy that aren't dependent on AI, there are three solid options to consider: Viking Therapeutics (NASDAQ:VKTX), Take-Two Interactive Software (NASDAQ:TTWO), and Five Below (NASDAQ:FIVE).

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Viking Therapeutics

Viking Therapeutics is a small but promising healthcare stock that has a lot of potential in GLP-1. Its shares rose recently on news that the company's GLP-1 drug, VK2735, helped patients lose weight and helped them keep nearly all the weight off when switching to maintenance dosing, with dosing every other week or on a monthly basis.

It increases the odds that VK2735 will obtain approval in the near future, which could send the stock skyrocketing. I also believe that Viking may be a possible acquisition target for a larger healthcare company. At roughly $4.1 billion in market cap, its valuation isn't terribly high, and it has a very promising asset in VK2735.

There's some risk here because Viking isn't generating revenue yet, but for investors willing to be patient and accept some uncertainty, Viking could be a top stock to own with significant upside in the long run.

Take-Two Interactive

This year is likely to be a big one for Take-Two Interactive, which is the company behind the popular Grand Theft Auto series. The newest game in the series, Grand Theft Auto VI, is scheduled to come out later this year. Sales are likely to be through the roof for the highly anticipated game.

There are also significant opportunities for the business to generate revenue from the game even after a customer purchases it, due to its strong focus on online gameplay. While Take-Two stock has struggled in the past 12 months, declining by more than 20%, strong sales numbers for its newest game could send the stock soaring in a hurry.

It's currently trading at a forward price-to-earnings (P/E) multiple of 28 (based on analyst expectations). But hype and strong sales numbers for Grand Theft Auto VI could lead to not only an upgrade in forecasts, but also the stock commanding a higher earnings multiple.

Five Below

Five Below is a value retailer that has done an excellent job of drawing kids into its stores with the latest trendy products. And with many of its products priced below $5, the stores can be more attractive options for families on a budget. That's evident given how well the business has been doing.

In its most recent quarter, which ended on Aug. 1, Five Below reported impressive revenue growth of 22.9%. Even its comparable growth rate, which is a measure of how well stores are doing compared to the same period a year ago, was solid at over 14%. Many retailers are content with single-digit comparable growth. Five Below has been performing incredibly well by comparison.

The stock has been rallying 44% over the past 12 months, but even with the sharp increase in value, it's trading at a reasonable forward P/E multiple of 22; it's not all that higher than the S&P 500 average of 20. Given the solid growth it has been generating, Five Below's valuation doesn't appear to be too high at all, as there can still be far more room for the stock to rise even higher in the months ahead.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Take-Two Interactive Software. The Motley Fool recommends Five Below and Viking Therapeutics. The Motley Fool has a disclosure policy.