2 Hyper-Growth Tech Stocks to Buy in 2025

Key Points

• AI-fueled demand for parallel processing power has given a big shot in the arm to these two companies in recent quarters.

• Both companies are sitting on multibillion-dollar end markets that should allow them to sustain healthy growth levels in the long run.

• 10 stocks we like better than CoreWeave ›

Technology stocks have delivered stunning returns to investors in the past couple of years, and that's not surprising. The sector benefits from massive tailwinds in the form of artificial intelligence (AI), high-performance computing, and the growth of the cloud computing market.

These catalysts helped several technology names deliver outsized growth in their revenue and earnings. They also propelled the tech-laden Nasdaq Composite index to an 87% total return (including dividends) in the past three years, comfortably better than the 72% total return delivered by the S&P 500 index during the same period. The good part is that the tech sector's catalysts could ensure terrific growth for many companies in the future as well.

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Let's take a closer look at two such hyper-growth tech stocks seeing phenomenal growth in their businesses that still have bright long-term prospects.

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1. Taiwan Semiconductor Manufacturing

The wild amount of money being spent to build out AI's infrastructure is powering remarkable growth at Taiwan Semiconductor Manufacturing (NYSE: TSM), the world's largest semiconductor foundry. It fabricates cutting-edge chips for leading AI semiconductor designers such as Nvidia, as well as for top consumer electronics companies such as Apple and Sony.

TSMC's essential position in key semiconductor markets and its close relationships with top AI chip designers help explain why its growth has been rock-solid so far in 2025. Its revenue in the first half of 2025 increased by 40% year over year, and its second-quarter revenue popped 39% to $31.9 billion -- well ahead of the $29.2 billion that had been the top of its guidance range three months earlier.

TSMC's growth, therefore, far exceeds the 11% increase in the global semiconductor market's revenue this year that analysts at Deloitte projected. Looking ahead, TSMC can keep growing at a faster rate than the overall semiconductor space as it is the go-to manufacturer of advanced AI chips for the dominant names in this sector. TSMC's 3-nanometer (nm) manufacturing process is reportedly running at full capacity thanks to its performance and efficiency advantages. Also, its nearest rival in the foundry sector reported some technical troubles with its own 3nm manufacturing -- that, too, benefited TSMC.

Management is confident that its revenue from AI chips is on track to clock a compound annual growth rate (CAGR) in the mid-40% range until 2029. As such, there is a good chance that the company's overall growth could end up being faster than the mid-teens percentages that analysts are forecasting for the next couple of years.

Data by YCharts.

Additionally, TSMC enjoys terrific pricing power as it controls 68% of the global foundry market. The company reportedly has been increasing prices thanks to the healthy demand for its advanced chipmaking facilities, which in turn is supported by its technological advantages over its rivals. These are the reasons why TSMC's margin profile keeps improving.

Data by YCharts.

All in all, a combination of robust top-line growth, widening margins, and the terrific opportunity in AI chips over the long run should help this semiconductor stock fly higher. Even better, investors are getting a good deal on TSMC right now. It trades at just 24 times forward earnings, which makes buying it a no-brainer considering the 34% increase in earnings it is expected to deliver this year.

2. CoreWeave

While TSMC has been capitalizing on the rapidly growing demand for AI chips, CoreWeave (NASDAQ: CRWV) is busy deploying data centers powered by those chips. CoreWeave rents out its AI data center infrastructure, powered by graphics processing units (GPUs), to clients that run AI workloads and machine learning applications on their servers.

CoreWeave's accelerated computing data centers can be used for training large language models (LLMs), as well as for building and deploying AI applications, among other things. Not surprisingly, demand for CoreWeave's AI infrastructure is red-hot, which is evident from the 420% year-over-year increase in its revenue in Q1 to $982 million.

At the same time, CoreWeave's backlog jumped by a solid 63% year over year to almost $26 billion, driven by a new contract from OpenAI and the expansion of an existing deal. The company has been aggressively boosting its data center capacity to satisfy its previous backlog, and to also be ready for the new business that's likely to come its way, considering the pace at which the cloud infrastructure-as-a-service market is growing.

Management sees its addressable market growing to $400 billion a year by 2028. That's way higher than the $5 billion revenue that the company expects to generate in 2025. CoreWeave pointed out in its Q1 earnings presentation that its data center capacity at the end of the quarter was at 420 megawatts. Meanwhile, its contracted power capacity stands at four times that number, suggesting that it has significant expansions planned.

And on July 7, the company announced that it is going to acquire data center infrastructure provider Core Scientific for $9 billion. That deal, which is expected to close by the fourth quarter, will bring 1.3 gigawatts of data center capacity under CoreWeave's control, with the potential to expand that capacity by more than 1 gigawatt.

Additionally, CoreWeave says that this acquisition will lead to "the immediate elimination of more than $10 billion in future lease liability overhead, costs that were otherwise committed across existing contractual sites over the next 12 years." Management adds that CoreWeave aims to achieve an annual run rate of $500 million in cost savings by 2027 once this deal is closed.

So, CoreWeave seems to be making the right moves to ensure that it can corner a nice chunk of its total end-market opportunity. The consensus estimates indicate that analysts expect it to do just that.

Data by YCharts.

The data and news suggest that CoreWeave's remarkable growth is here to stay. That could allow this hyper-growth stock to justify its current valuation and soar higher, even after the stunning gains that it already clocked this year.

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