The majority of growth stocks are unprofitable, making them risky investments. However, growth companies tend to operate in emerging industries like artificial intelligence (AI), cloud computing, quantum computing, biotechnology, and cannabis, where demand is strong and the future looks promising. The big names today — Amazon (AMZN), Nvidia (NVDA), and Tesla (TSLA) — were all once lesser-known growth stocks but have outperformed the market over time. Let’s take a look at two such growth stocks that Wall Street is strongly bullish about.
Growth Stock #1: ACM Research
The semiconductor industry is experiencing rapid growth with the advancement of AI. ACM Research (ACMR) specializes in developing and manufacturing advanced wet processing tools for semiconductor manufacturers worldwide. Valued at $1.47 billion, ACMR stock is up 76% year-to-date, far outpacing the S&P 500 Index ($SPX).
Over the years, ACM Research has concentrated on developing advanced wet processing tools that increase efficiency and yield while reducing environmental impact. The company provides chip manufacturers with solutions for wet processing, electrochemical plating, thermal deposition processes, track systems, and PECVD process tools.
The increase in chip demand prompted a surge in ACM’s advanced wafer cleaning and polishing solutions. Being an important supplier to the semiconductor industry has worked in its favor. ACM’s revenue has increased from $107 million in 2019 to $782 million in 2024. Diluted earnings per share have risen from $0.33 to $2.26 during the same period.
In the fourth quarter of 2024, ACM's revenue increased by 31.2% year-over-year to $223.4 million. For the full year, revenue climbed 40.2% to $782.1 million, driven by strong “sales of single wafer cleaning, Tahoe, semi-critical cleaning equipment, and ECP (front-end and packaging).” The company’s total shipments in 2024 increased by 63.1%, including both completed and pending deliveries for potential revenue. Adjusted earnings grew by 30.2% in the fourth quarter and 38.6% for the year.
The company reaffirmed its full-year f2025 revenue target of $850 million to $950 million, an 8.7% to 21.5% increase. Meanwhile, analysts expect revenue to increase by 18% to $923.5 million, with earnings rising by 0.58%. Furthermore, analysts predict that revenue and earnings will rise 17.2% and 7.6%, respectively, in 2026. ACMR stock is currently trading at 11 times forward 2025 estimated earnings, which is cheap given the semiconductor industry’s high growth potential.
On Wall Street, ACMR stock has earned a “Strong Buy” rating. Of the eight analysts who cover the stock, six rate it as a “Strong Buy,” one as a “Moderate Buy,” and one says it is a "Hold.” The average analyst target price of $34.43 for ACMR implies a 34.8% increase over current levels. Furthermore, its Street-high estimate of $40 suggests that the stock could rally by up to 56.6% over the next year.
Growth Stock #2: Snowflake
Valued at $57.3 billion, Snowflake (SNOW) is a key player in the cloud-based data warehousing and analytics space. The top three cloud giants, Amazon, Microsoft (MSFT), and Google (GOOGL), have all integrated Snowflake’s software-as-a-service (SaaS) platform. SNOW stock is up 14.8% year-to-date, outperforming the tech-heavy Nasdaq Composite Index’s ($NASX) dip of 3.9%.
Snowflake provides cloud-based data storage, processing, and analytics solutions, enabling businesses to efficiently manage and analyze large datasets. Despite market volatility, Snowflake has experienced significant revenue growth. In the most recent fourth quarter, product revenue of $943.3 million increased by 28% year-over-year. Remaining performance obligations (or RPO), which measure potential revenue, stood at $6.9 billion, up 33% year-over-year. Furthermore, Snowflake’s ability to retain customers is reflected in its net revenue retention rate, which stood at 126%. Snowflake, like many other fast-growing technology companies, has prioritized expansion, which has affected profitability.
The company has been unprofitable up to this point, with a net loss of $3.86 per share in fiscal 2025. Analysts believe its fortunes may soon improve, with a profit of $1.16 per share expected in fiscal 2026. Management expects a 21% to 22% increase in product revenue in the first quarter of fiscal 2026, with a 24% increase for the full fiscal year. As the demand for data-driven insights grows, Snowflake’s cloud-native data warehousing and analytics platform remains popular among enterprises seeking scalable and cost-effective solutions. According to CEO Sridhar Ramaswamy, Snowflake is now the world’s “most consequential data and AI company.”
Analysts predict that total revenue will increase by 23.6% to $4.5 billion in fiscal 2026. Furthermore, revenue could increase by 22.5% in fiscal 2027, followed by a 36% increase in earnings to $1.57 per share. SNOW, trading at 12.7x forward 2026 sales, remains an appealing AI stock to buy right now, thanks to its strong revenue growth, high customer retention rates, and innovative edge.
On Wall Street, SNOW stock has earned a “Strong Buy” rating. Of the 42 analysts who cover the stock, 31 rate it as a “Strong Buy,” three as a “Moderate Buy,” seven rate it a “Hold,” and one suggests it is a “Strong Sell.” The average analyst target price of $206.54 for SNOW implies a 19% increase over current levels. Furthermore, its Street-high estimate of $235 suggests that the stock could rally by up to 35.4% over the next year.
