2 Red-Hot Growth Stocks to Buy in 2025

Keithen Drury, The Motley Fool

Wed, Apr 30, 2025, 6:45 AM 4 min read

• Nvidia's stock is trading like the worst-case scenario will occur.

• MercadoLibre is a great way to gain exposure outside the U.S.

With the marketwide sell-off, plenty of red-hot growth stocks have sold off and don't have near the premium attached to them as they once did. This is excellent news for investors, as they might regain that premium when the market recovers, giving investors a nice profit.

I think Nvidia (NASDAQ: NVDA) and MercadoLibre (NASDAQ: MELI) are two red-hot growth stocks worth buying right now. Both have excellent growth prospects ahead of them, and I think now is the time to pounce.

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Nvidia has been the biggest growth story over the past two years, but 2025 hasn't been so kind. It was caught up in the marketwide sell-off, and now sits around 27% off its all-time high.

Nvidia's jaw-dropping growth over the past few years came from its dominance in the data center GPU (graphics processing unit) market. GPUs are the tool of choice in this industry as they are incredibly useful for processing workloads that require intensive calculations, such as AI model training. GPUs can process multiple calculations in parallel, an effect that can be further amplified by connecting additional GPUs in a cluster.

Nvidia has the best products in this space and has enjoyed a dominant market share position thanks to its superiority. However, the market dramatically sold off Nvidia's stock because it believes that it won't be able to live up to the growth expectations that were previously priced in. As a result, the stock's valuation tumbled.

At 25 times forward earnings, it's only marginally more expensive than the broader market, which trades at 20.5 times forward earnings. This is despite massive growth estimates for this year and next, alongside a projection that data center capital expenditures will exceed $1 trillion by 2028. Considering that the current capital expenditure amount hovers around $400 billion, and Nvidia generated $115 billion over the past 12 months from its data center GPUs, it clearly gets a large chunk of this spending.

If this projection comes true, Nvidia's stock is a no-brainer buy at this price, as investors are worried about what will happen over the next few months rather than over the next five years.

MercadoLibre (NASDAQ: MELI) is often referred to as the Amazon of Latin America. But that's selling it short. To capture its strong fintech business, the comparison would also need to include PayPal.