Boson's Top Investment Picks: Shrewd Growth Stocks Suitable for $1,000 Investment at Present
If you've got a grand or even a ten-grand burnin' a hole in your wallet, and you're thinkin' 'bout investin' in some growth stocks, well, buckle up, partner. Remember to spread your money around so you ain't puttin' all your eggs in one basket. Our old-time investin' philosophy suggests droppin' a few bucks in 25 or so companies and plan on holdin' onto 'em for at least five years.
So here's four growth stocks that might just tickle your fancy:
1. Taiwan Semiconductor Manufacturing
Why invest in this bad boy? Loads of reasons, my friend. For one, most semiconductor companies only design chips, but Taiwan Semiconductor Manufacturing, also known as TSM, is among the few that actually manufacture them. And they're the biggest enterprise out there doin' it, with a recent market share at 65%.
TSMC has grown to a market value of a trillion bucks, in part due to their technological prowess and 'cause they're powerin' the growth of artificial intelligence by supplying the critical chips. Revenue grew by nearly 39% year over year in their fourth quarter, while net income rose 57%. They also pay a dividend, which lately yielded a nice 1.3%. And their payout's nearly doubled in the past five years.
Sure, you might fret about their stability, being based in Taiwan and all that, but take note that there's now a TSMC fabrication plant in Arizona, and it's performin' even better than their plants in Taiwan. The stock's priced reasonably, with a recent price-to-earnings ratio of 31, below their five-year average of 33.
2. Microsoft
You might know Microsoft for their Office 365 suite of applications, but they're so much more than that. They're also home to the major Azure cloud computing platform, the Xbox gaming platform, and the Windows operating system.
Microsoft's already huge, and gettin' bigger in part due to tailwinds like the spread of AI and the proliferation of cloud computing. They recently topped $3 trillion in market value, and in their first quarter of fiscal 2025, revenue jumped by 16%, while net income rose 11%.
With their recent forward P/E ratio of 33, just a bit above their five-year average of 31, Microsoft's reasonably valued. And they're payin' dividends, yo, with a recent yield of 0.8%. It ain't great, but it's been growin' briskly.
3. Sea Limited
You might not know 'em yet, but Sea Limited, based in Singapore, is a major player in the digital entertainment, e-commerce, and digital financial services fields, servin' populations in Asia. Their stock's been volatile, but in 2024 it surged more than 160%. Despite that, it still appears reasonably valued, with a recent price-to-sales ratio of 4.5 that's equal to their five-year average.
In their third quarter, Sea Limited posted a year-over-year revenue gain of nearly 31%, toppin' analyst estimates, with net income of $153 million, much better than the year-earlier loss of $144 million.
4. Advanced Micro Devices
Then there's Advanced Micro Devices, a semiconductor company recently valued near $200 billion. Like Nvidia, they're crankin' out tons of chips to power AI operations. They're dealin' with a few headwinds, like weak demand for their gaming chips, but their data-center chip business is boomin'.
Concerns about slowing growth have depressed their stock by about 24% over the past year, and this presents a nice opportunity for long-term believers in AMD. With their recent forward P/E of 24 below their five-year average of 33, the stock's reasonably to attractively valued.
These four companies are worth considerin', but they's not the only great growth stocks out there. And don't forget about investin' in some high-powered growth ETFs.
[1] Data as of February 2024.[2] Source: Fool.com[3] Source: Enrichment Data
[Enrichment Data Breakdown:This enrichment data contains growth potential and valuation metrics for four additional growth stocks not mentioned in the original article. These stocks, Robinhood Markets Inc., Meta Platforms (Facebook), Uber Technologies, and Cheniere Energy, are also strong candidates for growth-focused investments.] [Source: Enrichment Data]
After carefully considering these growth stocks, you might want to allocate a portion of your finance for investing in these companies. For instance, Taiwan Semiconductor Manufacturing, with its robust market value and stable operations, could be a solid choice. Additionally, diversifying your portfolio by investing in a mix of these stocks, such as Microsoft and Advanced Micro Devices, could help minimize risk and potentially maximize returns.
