The stock market loves growth, so investing in hyper-growth stocks is a good idea – if you choose the right one. Let’s look at the stocks of five companies that are growing their earnings by 40% or more to consider buying in 2026.
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Considering its size, it still comes to mind Nvidia (NASDAQ: NVDA ) It’s a high growth stock, but it is what it is. The semiconductor company’s revenue rose 73% to $68.1 billion last quarter. Meanwhile, it only expects its revenue growth to accelerate to 77% in Q1.
As artificial intelligence (AI) infrastructure continues to evolve and the company’s graphics processing units (GPUs) are the main chips powering AI workloads, the company still has a lot of growth ahead of it. At the same time, the combination of its CUDA software platform and the NVLink interactive system provides it with a wide moat.
As the demand for GPUs and other AI chips increases, so does the demand for high-bandwidth memory (HBM), which is packaged with these chips to optimize their performance. Meanwhile, with HBM requiring three times the wafer capacity of traditional DRAM (dynamic random access memory), prices for HBM and DRAM in general are skyrocketing due to lack of supply.
This leads to hyper growth for the memory builder Micron Technology (NASDAQ: MU )which saw a 57% increase in revenue last quarter. Just as importantly, its gross margin expanded from 38.4% to 56%, leading to increased profitability and cash flow. The company expects HBM demand to grow at an annual growth rate of 40% over the next few years and with DRAM prices remaining high, the company has a long way to go.
With revenue growth accelerating for 10 straight quarters and reaching 70% in Q4, Palantir Technologies (NASDAQ: PLTR ) is in high growth mode. Meanwhile, the generally conservative company expects revenue growth of more than 60% for this year.
The company is one of the most important defense contractors of the United States, while at the same time, its AI platform (AIP) is an essential AI operating system in the commercial space. With AIP enabling customers to use AI to solve many real-world problems across industries, Palantir still has a long way to grow.
With 66% revenue growth in Q4, AppLovin (NASDAQ: APP ) Remains in a state of hypergrowth. At the same time, the company is also increasing its gross margin while reducing its operating expenses, leading to greater profit growth and stronger free cash flow generation. Meanwhile, its revenue growth is expected to remain strong, with the company guiding for more than 50% Q1 revenue growth.
