2 Growth Stocks and 1 ETF to Buy Even If the Stock Market Keeps Falling in 2025

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Daniel Foelber, Scott Levine, and Lee Samaha, The Motley Fool

Wed, Apr 2, 2025, 3:15 AM 6 min read

So far, 2025 hasn't been a large twelvemonth for maturation stocks. At the clip of this writing, the growth-heavy Nasdaq Composite is down by much than 10% twelvemonth to day -- underperforming the S&P 500 and Dow Jones Industrial Average -- some of which are besides down, but by lesser degrees.

However, maturation stocks and exchange-traded funds (ETFs) that clasp growth stocks tin beryllium fantabulous investments for folks who tin endure immoderate volatility and person semipermanent clip horizons.

Here's wherefore Broadcom (NASDAQ: AVGO), Trimble (NASDAQ: TRMB), and the Invesco QQQ Trust (NASDAQ: QQQ) basal retired arsenic large buys now.

Rendering of circuits of airy passing done a country afloat of servers.

Daniel Foelber (Broadcom): Network connectivity and semiconductor elephantine Broadcom has fixed up each the gains it made aft reporting its fiscal 2024 fourth-quarter results successful December. The banal rallied hard aft the study connected management's beardown guidance and the company's multiyear maturation opportunities successful artificial quality (AI), lifting it into the $1 trillion club. That surge successful enthusiasm proved short-lived. Broadcom has been 1 of the worst-performing S&P 500 components successful 2025. But determination are reasons to beryllium optimistic astir the banal implicit the agelong term.

AI has grown from a comparatively tiny portion of Broadcom's concern to 1 that provides much than a 4th of full revenue. Unlike pure-play AI companies, it has a divers array of bequest concern units, including networking, cybersecurity, and different planetary connectivity products similar ethernet adapters and switches.

In the fiscal 2025 Q1 study it delivered successful aboriginal March, Broadcom expressed enthusiasm for its XPU accelerator chips, which tin execute circumstantial tasks astatine a little outgo than graphics processing units (GPUs). One interest for that portion of the business, however, is that hyperscalers whitethorn dilatory their spending connected caller unreality infrastructure owed to rising economical uncertainty.

A fistful of hyperscaler customers supply a important portion of the company's revenue. On the March net call, Broadcom said that 3 hyperscale customers volition make what it calls a "serviceable addressable market" successful the scope of $60 cardinal to $90 cardinal successful fiscal 2027. So a batch of Broadcom's AI maturation is based connected precocious superior expenditures by large tech companies to substance AI demand.

Being babelike connected a fistful of buyers is simply a double-edged sword -- connected the 1 hand, it tin amplify maturation during periods of expansion, but it besides leaves a institution susceptible to a accelerated deceleration. With Broadcom, however, it's worthy remembering that the hyperscalers fueling its AI concern whitethorn beryllium antithetic from the customers driving income successful different areas of the business, similar endeavor bundle and networking.

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