Best Growth Stocks in 2025

Growth stocks are companies expected to increase their revenues and earnings faster than the market average. These stocks are popular among investors seeking long-term capital appreciation, as they often lead in innovation and market expansion. Of course, they can be volatile, but their upside potential is what makes them stand out.

Below, we spotlight 7 of the best U.S. growth stocks for 2025 from a variety of industries and market caps. Each pick includes key talking points and a beginner-friendly breakdown of why it’s poised for growth.

1. Nvidia (NVDA)

• Unprecedented AI Chip Demand: Data-center revenue surged over 400% year-on-year as Nvidia’s GPUs power the AI boom.
• Market Dominance: Commands a lion’s share of high-end graphics and AI processors, with little serious competition in sight.
• Expanding Platforms: Evolving from just chips to full AI systems (like new “Blackwell” supercomputers), and pushing into automotive and robotics.
• Stock Momentum: Investors have noticed – NVDA shares jumped ~400% in two years amid AI enthusiasm.

Nvidia might be the biggest winner of the AI revolution. If you’ve heard of ChatGPT or self-driving cars, chances are Nvidia’s chips are the brains behind them. The company’s specialty graphics processing units (GPUs) aren’t just for video games; they’re the workhorses that train and run artificial intelligence models. The demand is off the charts – Nvidia’s data center division (which sells AI hardware to cloud providers and enterprises) hit record sales of $22.6 billion in a single quarter, up 427% from a year ago. That explosive growth underscores how essential Nvidia’s technology has become in the AI era.

What makes Nvidia a standout is its near-monopoly in cutting-edge AI chips. It faces only modest competition, meaning big players like Amazon, Microsoft, and Google are lining up to buy Nvidia’s latest silicon to fuel their own AI initiatives. In fact, Nvidia’s CEO Jensen Huang said “AI is advancing at light speed”, noting that orders for their next-gen Blackwell chips are “amazing”. The company isn’t just selling chips anymore, either – it’s now offering entire AI supercomputers built on its hardware and software. This move into complete systems (essentially “AI data centers in a box”) could further boost revenues by providing more of what big customers need.

Beyond AI, Nvidia still dominates in PC graphics for gaming and content creation, and it’s pushing into new areas like self-driving car tech and cloud computing accelerators. All these initiatives give Nvidia multiple engines of growth. Investors have certainly taken note: Nvidia’s stock has skyrocketed, rising over 400% in the last two years amid the AI frenzy. That huge jump means expectations are high, but it also reflects confidence that Nvidia will keep riding the AI wave in 2025 and beyond.

The key point is that Nvidia provides the “picks and shovels” of the modern tech gold rush. Every time an app or company adds AI features, chances are they need more Nvidia chips to do it. As long as the AI trend continues, Nvidia’s growth story should too – though be aware the stock can be volatile after such a big run-up. Overall, Nvidia exemplifies a growth stock at the intersection of several tech megatrends, making it a compelling choice for 2025.

2. Amazon (AMZN)

• E-commerce Resilience: Amazon’s online retail sales are growing again (Q1 online store revenue up ~6% YoY), with Prime and logistics prowess keeping customers hooked.
• Cloud Comeback: AWS (cloud division) is back to double-digit growth (~17% YoY) as companies ramp up tech spending. Huge future cloud potential: 85% of IT spend is still on-premises, leaving a long runway for AWS.
• Advertising Boom: Amazon’s ad business jumped ~18–19% to nearly $14B in a single quarter, becoming a major high-margin growth driver.
• Innovation & Efficiency: Investing in AI (partnership with Anthropic, new AI services) and reaping rewards from cost cuts – operating income is up 20%, improving profitability alongside growth.

Amazon is far more than an online bookstore these days. It’s a tech conglomerate driving growth on multiple fronts. First, in e-commerce, Amazon’s core retail business proved its resilience. After a post-pandemic lull, people are shopping online more again – Amazon’s online store sales rose about 6% in the latest quarter. With its vast selection, fast Prime shipping, and extensive logistics network, Amazon continues to grab a big share of consumer spending. It’s also expanding services like Buy with Prime (letting other sites use Prime shipping) and one-day delivery, keeping its retail engine humming into 2025.

The real cash cow, however, is Amazon’s cloud computing arm, AWS (Amazon Web Services). AWS had slowed in 2023, but it’s regaining momentum – posting 17% year-over-year growth, with $25–30 billion in quarterly sales. As CEO Andy Jassy pointed out, 85% of global IT spend is still on-premises (in traditional data centers) rather than cloud. In other words, most companies have yet to fully migrate to cloud, and that represents a massive future market for AWS. As the economy picks up and businesses invest in digital transformation (including AI, where AWS offers specialized services), Amazon’s cloud is poised for continued expansion. Importantly, AWS is highly profitable, which fuels Amazon’s overall finances.

Another unsung hero for Amazon is its digital advertising business. When you search on Amazon or scroll product listings, those sponsored results and brand ads are bringing in serious money – about $13.9 billion in Q1 2025, up roughly 18% from a year prior. That’s bigger than YouTube’s ad revenue for context, and it’s growing faster than Amazon’s retail segment. Advertising is lucrative since it has high margins, boosting Amazon’s earnings.

Crucially, Amazon has balanced growth with a newfound focus on efficiency. The company underwent some belt-tightening (layoffs, slower warehouse expansion) in 2023. As a result, its operating income jumped 20% year-on-year, showing that Amazon can grow and profit at the same time. This improved profitability gives it more room to invest in innovation like Artificial Intelligence (Amazon is integrating AI into Alexa, offering AI cloud services, and investing in startups like Anthropic), healthcare (acquisition of One Medical), and even satellite internet (Project Kuiper launching satellites). These initiatives could become future growth avenues.

Amazon offers a bit of everything: a dominant market position in e-commerce, a critical platform in cloud computing, and exposure to cutting-edge tech trends – all under one roof. It’s already a giant, but its multiple growth engines (cloud, ads, Prime services, new ventures) mean Amazon still has room to run in 2025. The stock isn’t “cheap” in absolute terms, but you’re getting a stake in one of the most powerful and innovative companies in the world. As long as consumers keep clicking “Add to Cart” and businesses keep migrating to the cloud, Amazon’s growth story should continue.

3. Tesla (TSLA)

• EV Sales Scale: Tesla delivered roughly 1.8 million vehicles in 2024, making the Model Y the world’s best-selling car that year – an unprecedented feat for an EV.
• Secular EV Tailwind: Electric vehicles are now ~21% of global auto sales (and climbing), signaling plenty of room for Tesla to grow as the world shifts to EVs.
• New Models & Markets: Launching the Cybertruck (first pickup truck) in 2024 and refreshing popular models (Model 3/Y) aim to rekindle demand. Tesla even plans to ramp Cybertruck production to ~250k annually by 2025.
• Ecosystem & Tech Edge: Industry-leading battery tech, expanding charging network (opened to rivals), and energy storage business (Tesla Powerwall/Megapack) provide additional growth avenues.

Tesla is the trailblazer of the electric car revolution. For a sense of its dominance: the Tesla Model Y became the world’s best-selling car in 2023 – across all vehicle types, gas or electric. That’s a jaw-dropping milestone, with 1.2 million Model Y sold globally in 2023. While 2024 proved challenging (Tesla’s total deliveries slightly dipped to about 1.79 million vehicles), CEO Elon Musk has set the stage for a return to growth in 2025. The big picture is that Tesla operates at a scale most rivals are still dreaming of, and it’s positioned to grow as EV adoption accelerates worldwide.

The tailwinds for Tesla are huge. Globally, electric vehicles made up roughly 1 in 5 new car sales by early 2025 – up from almost nothing a decade ago. Governments are pushing green energy, offering tax credits and incentives for EV buyers (the U.S. EV tax credit helps Tesla since many of its cars qualify). This rising tide lifts Tesla because it’s the best-known EV brand with a clear lead in areas like range and software. Even as competition increases, Tesla benefits from being an early mover with a coveted brand – its cars often top sales charts in multiple countries. In short, the entire auto market is gradually shifting electric, and Tesla is grabbing that opportunity by the horns.

New products will play a big role in Tesla’s 2025 story. The company finally started delivering the Cybertruck, its wildly styled electric pickup, in late 2024. While initial volumes are low, Tesla aims to ramp up production to as many as 250,000 Cybertrucks in 2025 if demand allows. This could open a huge new market (American love for pickup trucks runs deep). Tesla also refreshed its popular Model Y SUV in early 2025 to boost appeal, after a period of customers holding off purchases in anticipation. These moves, along with rumored development of a more affordable next-generation model, show Tesla isn’t standing still. They’re expanding factories in Texas, Germany, and building new ones (including a planned plant in Mexico), which should eventually enable higher sales volumes.

Beyond cars, Tesla has an energy and technology ecosystem that adds to its growth potential. Its Supercharger network is now being opened to other EV brands – and automakers like Ford and GM struck deals to use Tesla’s charging standard, potentially bringing in new revenue as Tesla sites become the go-to “gas stations” for EVs. Tesla also sells battery storage for homes and utilities (the Powerwall and Megapack), a business that’s growing quickly as solar power and grid storage demand rises. This energy side may not be as large as the car business yet, but it complements the mission of sustainable energy and could be a multi-billion dollar segment on its own.

Tesla represents a high-growth, higher-risk pick. Its stock can swing sharply with Elon Musk’s tweets or quarterly delivery numbers. Recent hiccups (like a slight sales drop due to price cuts and competition) show it’s not smooth sailing 100% of the time. However, Tesla’s long-term narrative – leading the transformation of a $2 trillion auto industry from gas to electric – remains intact. If Tesla executes well, it stands to benefit from multiple years of industry growth ahead. In 2025, watch for how well Tesla scales up new models and navigates competition; those will be key to its performance. But there’s no doubt that Tesla is at the forefront of a major global shift, which makes it one of the most intriguing growth stories out there.

4. Eli Lilly (LLY)

• Breakout Drug Success: Lilly’s new diabetes/obesity medicine is a blockbuster. Sales of Mounjaro (for diabetes) jumped 60% in one quarter, hitting $3.5B, and its obesity version (Zepbound) added nearly $2B. This drove Lilly’s revenue up 45% in Q4 2024.
• Massive Market Opportunity: Analysts forecast the weight-loss drug market could exceed $100–150 billion by 2030 – Lilly is in prime position as a leading provider.
• Soaring Growth Rates: Lilly’s overall sales grew 32% in 2024, and the company expects a similar ~30%+ jump in 2025, an almost unheard-of growth rate for a large pharma.
• Pipeline of Innovation: Beyond obesity/diabetes, Lilly has promising drugs for Alzheimer’s (donanemab just won FDA approval in early 2025) and others in immunology and cancer, potentially adding new growth drivers.

In the pharmaceutical world, Eli Lilly has transformed from a steady blue-chip into a bona fide growth stock thanks to its game-changing new drugs. The biggest story is Lilly’s GLP-1 medications – a class of drugs originally for diabetes that also cause dramatic weight loss. Lilly’s version, Mounjaro (tirzepatide), has been a smash hit for type 2 diabetes, and its sister drug Zepbound was approved for obesity. Demand is off the charts. In late 2024, Mounjaro sales leapt 60% year-over-year in one quarter, reaching $3.5 billion, and Zepbound (still new on the market) pulled in $1.9 billion in the same quarter. These two alone have turbocharged Lilly’s growth – the company’s quarterly revenue ballooned 45% higher than a year prior, and full-year 2024 sales topped $45 billion (up 32% YoY). Such growth is virtually unprecedented for a big pharma company.

Why the frenzy? Because these drugs address a huge unmet need: obesity. Worldwide, hundreds of millions of people struggle with obesity and related health issues. Effective weight-loss medications were elusive until this new class of drugs proved they can help patients drop substantial weight. Analysts are now racing to update their forecasts – some estimate the global market for obesity treatments could hit $100+ billion annually by the end of this decade (from only about $6 billion in 2022). If that’s even close to true, Lilly stands to capture a large slice of that pie along with its partner/competitor Novo Nordisk. Essentially, Lilly’s new drugs could become some of the best-selling medications in history, and 2025 will be the first full year harvesting those gains (with Zepbound expanding availability for obesity).

Beyond obesity and diabetes, Lilly is also innovating in other high-impact diseases. Notably, in 2023 Lilly announced that its Alzheimer’s drug donanemab was shown to significantly slow the progression of early Alzheimer’s. In mid-2025, donanemab (brand name Kisunla) earned FDA approval, making Lilly one of the leaders in a potentially multi-billion dollar Alzheimer’s treatment market. This is huge: Alzheimer’s is a tough disease that affects millions of families, and any approved therapy meets pent-up demand. Lilly is also developing drugs for cancer and autoimmune conditions, and it launched new medicines for eczema, migraine, and more. In short, it has a rich pipeline that could produce the next big therapy.

Eli Lilly offers an attractive combination: it’s a large, established company (reducing some risk compared to speculative biotechs) and it currently has one of the fastest growth rates in the S&P 500 thanks to its new products. The stock performed strongly in recent years as trial results and sales numbers impressed Wall Street. In 2025, watch for how quickly Lilly can scale up production to meet demand for its obesity drug – supply shortages have been a challenge industry-wide, though they’re easing as companies invest in manufacturing. Also, adoption by insurance (to cover these drugs for more patients) will be an important factor. There’s always risk in pharma (e.g., competition or unforeseen safety issues), but Lilly’s prospects look bright. It’s essentially riding two “megatrend” healthcare waves: the fight against obesity/diabetes, and breakthroughs in neurological diseases like Alzheimer’s. That dual engine makes LLY a compelling growth stock pick for 2025.

5. Palantir (PLTR)

• Surging Revenue Growth: Palantir’s revenue jumped 39% year-over-year in Q1 2025, a big acceleration from prior years. U.S. sales leaped 55%, driven by enterprise demand for its AI-powered platforms.
• Turning Profitable: After years of operating at a loss, Palantir is now consistently profitable on an adjusted basis. Q1 2025 EPS was $0.13 vs $0.08 a year ago, and cash flows are strong – showing its business model is maturing.
• AI Platform Adoption: The company’s new Artificial Intelligence Platform (AIP) is in high demand as businesses and governments look to integrate AI with their data. CEO calls it a “tectonic shift” driving a “stampede” toward Palantir’s solutions.
• Big Contracts & Backlog: Palantir keeps signing large deals (190+ contracts worth $1M+ in Q1) and reported its highest-ever U.S. commercial contract value in backlog (+183% YoY), setting the stage for future growth.

Palantir is a unique player that straddles the worlds of big data, government contracting, and now enterprise AI. For years, it was known for its work with the U.S. military and intelligence agencies – crunching huge data sets to help with counterterrorism, logistics, etc. Now, Palantir is increasingly being embraced by commercial businesses as well, especially with the rise of AI. The result? Palantir’s growth has kicked into high gear. In the first quarter of 2025, Palantir posted $884 million in revenue, up 39% from the year prior. To put that in perspective, it was growing more like ~20% a year ago, so this is a significant acceleration. In the U.S. market, Palantir’s sales jumped even more – +55% overall, including a whopping +71% in U.S. commercial revenue – meaning private sector clients are really ramping up spend on Palantir’s software.

So, what’s driving this? In one word: AI. Palantir has rolled out an AI Platform that lets organizations harness large language models (the tech behind chatbots like ChatGPT) on their own proprietary data, in a secure and governed way. Imagine a big bank or a manufacturing firm wanting to use AI to find insights in their data – Palantir provides the tools to do that without the data ever leaving their servers. CEO Alex Karp said the rush to adopt large language models has turned into a “stampede” and a “revolution” sweeping through their customer base. In plainer terms, companies are urgently seeking AI solutions, and Palantir’s reputation in handling sensitive data makes it an appealing choice. This has led Palantir to raise its 2025 outlook, now expecting 36% revenue growth for the full year – far higher than initial forecasts.

Another encouraging sign: Palantir is consistently profitable now (on an adjusted basis). It spent many years burning cash, but as of 2023-2024 it turned the corner to positive earnings. In Q1 2025 it made 13 cents per share (vs 8 cents a year ago). It’s also boasting an “Rule of 40” score of 83% (a tech industry metric combining growth rate and profit margin – 83% is excellent). This profitability means Palantir isn’t likely to need to raise money or dilute shareholders, which had been a concern after its 2020 IPO.

Palantir’s customers include U.S. defense and civilian agencies (for example, helping the Army manage logistics or governments track COVID vaccine distribution) and a growing roster of private companies in finance, healthcare, energy and more. The company’s software essentially helps organizations make sense of massive, disparate data – think of it as a central operating system for data analytics. With the new layer of AI, Palantir’s tools can not only dashboard your data but also help generate insights or predictions from it. As evidence of traction, Palantir closed 31 deals worth $10M+ each in the recent quarter, and its backlog of contracts (what customers have committed to spend) hit record levels. Notably, U.S. commercial contract value was up 183% – a hugely positive leading indicator.

Palantir offers exposure to the enterprise AI boom and the digital transformation of big organizations. It does come with some caveats: the stock had already soared nearly 400% over the past 12 months as of early 2025, so a lot of good news is priced in. It’s also a smaller company ($30-$40B range in market cap) relative to the mega-caps, which can mean stock volatility. And Palantir’s close ties to government work mean its fortunes can ebb and flow with federal budgets or contract timing. However, if you believe that companies will continue investing heavily in AI and data analytics, Palantir is one of the pure-play names in that space. It has a first-mover advantage in bridging AI with sensitive data management. Going into 2025, Palantir appears to be firing on all cylinders, making it a compelling growth stock to consider.

6. Shopify (SHOP)

• Robust Sales Growth: Shopify’s revenue jumped 27% year-over-year in Q1 2025 to $2.36 billion, marking its 8th straight quarter of 25%+ growth. This signals that post-pandemic e-commerce momentum is still strong.
• Profitable at Scale: The company isn’t just growing, it’s doing so efficiently – posting a 15% free cash flow margin. Shopify has delivered positive free cash flow for seven consecutive quarters, a sign of a sustainable business.
• Rising Merchant Sales: Gross merchandise volume (GMV – total sales across Shopify stores) rose ~23% to $74.8B in the quarter. Both online and offline (point-of-sale) sales grew, indicating merchants are thriving on the platform.
• Platform Expansion: Shopify provides more than online store fronts – it offers payments, shipping, financing, and now even integration with big retailers (e.g. tie-ups to use Amazon’s fulfillment). This ecosystem deepens its moat and growth opportunities.

Shopify is often described as the commerce platform for the little guys (and gals) – it enables millions of entrepreneurs and small businesses to easily set up online stores and sell globally. In doing so, Shopify has become a tech champion of retail, especially for those who aren’t Amazon. And it’s growing like a weed again. In early 2025, Shopify announced a 27% revenue increase for the latest quarter, meaning the company is back to strong double-digit growth after the pandemic rollercoaster. What’s impressive is that Shopify achieved this while also generating solid profits, showing its strategy of focusing on core business is paying off.

Let’s unpack the growth: Shopify’s merchants collectively sold nearly $75 billion worth of goods in Q1 2025, up about 23% from the prior year. That metric (GMV) is important – it reflects the health of the merchants on Shopify. It seems consumer demand remains robust for online shopping, and Shopify merchants are benefiting. Not only online, but Shopify’s solutions for in-person sales (like its point-of-sale systems for physical shops) also saw 20%+ growth, which means Shopify is helping retailers both online and offline – a trend toward omnichannel retail. Additionally, Shopify’s newer services like Shopify Markets (cross-border commerce) and B2B features are gaining traction (B2B merchant sales even grew triple-digits, hinting at a new growth frontier).

One of the standout aspects of Shopify’s 2025 story is its move to profitability without sacrificing growth. The company underwent some restructuring in 2023 – notably selling off its logistics/warehousing arm and streamlining operations. Now, it’s a leaner business that relies on partners for things like fulfillment while focusing on its software and payments platform. The result: Shopify reported a 15% free cash flow margin, meaning for every dollar of revenue, it’s keeping 15 cents in free cash. That’s quite impressive for a company still growing >25%. In fact, Shopify’s President proudly noted they are delivering “growth and profitability at scale,” highlighting seven straight quarters of positive free cash flow and accelerating revenue. This is reassuring for investors because high growth tech companies often lose money to grow – Shopify is showing it can do both.

Shopify’s business model is often compared to an “arms dealer in the gold rush” of e-commerce. Instead of directly selling products, Shopify sells the tools to empower others to sell. It earns revenue from subscriptions (merchants paying for the platform) and more so from merchant services (transaction fees, Shopify Payments, shipping labels, etc.). As its merchants succeed, Shopify takes a small cut of each sale. This creates a virtuous cycle: more merchants and more sales = more revenue for Shopify. And with economies of scale, its margins improve.

Looking ahead to 2025, Shopify is well positioned to benefit from several trends: the continued growth of online shopping, the rise of independent brands/creators launching products, and the globalization of retail (Shopify makes it easier to sell internationally). It’s also integrating with big players rather than fighting them – for instance, after initially being wary, Shopify now allows Amazon’s “Buy with Prime” integration, which could drive more sales for its merchants (and by extension more fees for Shopify). Additionally, the company’s push into fintech (like offering loans to merchants via Shopify Capital, or its Shop Pay installments) adds revenue streams and stickiness.

Shopify offers a play on the future of retail with a company that has proven its mettle. It has a large addressable market (millions of businesses worldwide that aren’t fully online yet) and relatively few direct competitors at its level of quality. The stock price, however, can be volatile – it boomed during COVID, then crashed in 2022, and has since been recovering as fundamentals improve. So it’s a good reminder that even great growth companies can have wild rides. The main risk is if consumer spending shifts or a giant like Amazon or WooCommerce were to undercut Shopify, but right now Shopify’s value proposition to merchants is strong. All in all, Shopify in 2025 looks like a balanced growth story: not just growing fast, but doing so in a sustainable way – a combination that bodes well for long-term investors.

7. First Solar (FSLR)

• Record Order Backlog: First Solar has a contracted backlog of about 66 GW of solar modules through 2030 – that’s roughly 6 years worth of production locked in, thanks to soaring demand for clean energy projects.
• Ramping Production: It sold a record 14 GW of panels in 2024 and is expanding manufacturing in the U.S. and abroad. New factories (financed in part by subsidies) will boost capacity to meet the backlog and future orders.
• Policy Tailwinds: Beneficiary of the U.S. Inflation Reduction Act – its American-made panels earn lucrative tax credits, giving it a cost advantage. Also shielded from some tariffs hitting Chinese-made panels.
• Robust Industry Outlook: Global solar installations are expected to keep rising as the world shifts to renewable energy. In the U.S. alone, electricity demand is seen growing ~50% by 2050, and much of that new supply is likely to be solar – a positive long-term backdrop for First Solar.

If you’re looking for a growth stock outside the software/Internet sphere, First Solar is a top contender. It’s America’s largest solar panel manufacturer and a leader in photovoltaic technology. As countries commit to fighting climate change, solar power installations are surging – and First Solar finds itself at the right place at the right time. The company’s panels are in such high demand that First Solar now has 66.3 gigawatts in its order backlog extending to 2030. To put that in layman’s terms: one gigawatt can power about 150,000 American homes, so 66 GW is enormous – and it represents confirmed orders from utilities and developers who plan to build solar farms for years to come. This backlog provides great visibility into future revenue; First Solar knows it will be selling panels as fast as it can make them for quite a while.

First Solar’s recent performance reflects this boom. In 2024, the company sold a record volume of panels (14.1 GW) and achieved record revenue of $4.2 billion. It’s profitable and using its cash to expand manufacturing capacity aggressively. It opened new plants in the U.S. (Ohio) and is building more, including overseas (India). Why the expansion? In addition to high demand, First Solar is benefiting from favorable U.S. policies that encourage domestic solar production. Under the Inflation Reduction Act (IRA) passed in 2022, solar manufacturers get incentives like tax credits for each panel made in America. First Solar expects hundreds of millions of dollars per year in these credits, effectively lowering its costs. This has made First Solar’s U.S.-made panels very cost-competitive and given it an edge over foreign competitors. Furthermore, new U.S. trade policies have imposed tariffs on solar panels imported from certain countries (to prevent Chinese companies from evading duties), and First Solar, with its U.S. factories, is largely exempt from those issues. In fact, any challenges it faces (the company did slightly trim its near-term outlook due to tariff uncertainty on its own imports from Malaysia/Vietnam) are more than outweighed by the domestic support it enjoys and its pivot to make even more panels on U.S. soil.

Technologically, First Solar is distinct. It produces thin-film solar panels using cadmium telluride instead of the typical silicon. These panels perform well in hot climates and have a lower degradation rate (they last long). They’re particularly popular for large utility-scale solar farms. As solar energy deployment grows, First Solar’s eco-friendly, efficient panels are in prime position. The company’s customers are often solar developers and utilities planning huge solar installations across deserts, farmlands, and rooftops.

The macro trends strongly favor solar: Governments and corporations have set aggressive targets for renewable energy adoption over the next decade. Solar is now one of the cheapest forms of electricity in many regions. In the U.S., electricity usage is projected to rise significantly by mid-century (think electric vehicles, data centers, etc., driving demand), and a big chunk of new generation is expected to be solar and wind. All of this implies a multi-year growth runway for companies like First Solar.

It's worth noting that First Solar’s stock price had a big run-up in 2023 as investors saw it as a prime beneficiary of the IRA and clean energy boom. It has been a bit volatile, especially around earnings (for example, if quarterly numbers miss forecasts due to timing of revenues or expansion costs, the stock can dip). However, its valuation is supported by the fact that it’s one of the few Western solar manufacturers with scale, and it has solid financials (healthy balance sheet with net cash, and profits). There is competition globally, but First Solar’s niche tech and U.S. policy support cushion it somewhat from the intense price wars that have plagued other panel makers. In summary, First Solar offers high growth tied to the global megatrend of renewable energy. If you believe the solar industry will continue its rapid expansion in 2025 and beyond, First Solar is likely to be a key player powering that sunshine-fueled growth.

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