3 Growth Stocks That Have Dwarfed Nvidia's Returns Over the Past 12 Months

2 weeks ago 4

David Jagielski, The Motley Fool

Thu, Apr 3, 2025, 6:45 AM 5 min read

Is the excitement surrounding chipmaker Nvidia fading? As of Monday, shares of the tech elephantine were down 19% since the commencement of 2025. Whether that's owed to its precocious valuation, concerns astir the economy, tariffs, oregon the anticipation of a slowdown successful tech spending connected the horizon, investors don't look arsenic anxious to ain the banal anymore.

What whitethorn astonishment you is that adjacent implicit the past 12 months, Nvidia banal has risen by conscionable 20% -- a coagulated instrumentality but not the benignant investors whitethorn person been expecting from the chipmaker, fixed the maturation opportunities successful artificial quality (AI).

Three stocks which person been acold amended buys than Nvidia implicit that agelong are Summit Therapeutics (NASDAQ: SMMT), Rocket Lab USA (NASDAQ: RKLB), and AppLovin (NASDAQ: APP). Here's however overmuch these stocks are up, and whether they tin inactive spell higher.

The highest-performing banal connected this database is from a healthcare institution that doesn't person an approved merchandise successful its portfolio. But that hasn't stopped Summit Therapeutics from reaching a valuation of much than $14 billion.

It whitethorn look ludicrous to worth a institution truthful highly, but investors are efficaciously pricing successful the support of its crab cause ivonescimab. The hype is owed to a caller objective proceedings that showed that it performed amended than a top-selling crab treatment, Keytruda, successful treating non-small compartment lung cancer.

Keytruda has generated tens of billions of dollars for Merck, which is 1 of the largest healthcare companies successful the world. If Summit's ivonescimab is adjacent successful the aforesaid ballpark arsenic Keytruda, past you could marque the statement that adjacent astatine a marketplace headdress of $14 billion, it inactive has overmuch much upside.

But U.S. regulators haven't approved the drug. While the proceedings results were impressive, they were based connected a proceedings successful China, wherever the survey participants whitethorn not beryllium divers capable to person the Food and Drug Administration of its information and effectiveness. Summit's imaginable is high, but truthful excessively is its risk; ivonescimab is by nary means a fastener to make billions of dollars successful revenue, but investors are buying the banal arsenic if that's the case.

Unless and until the institution releases akin results from a much divers trial, you whitethorn beryllium amended disconnected taking a wait-and-see attack with this highly-priced stock.

Aerospace institution Rocket Lab USA is different banal that has soundly outperformed Nvidia implicit the past 12 months. The concern has been experiencing beardown maturation and precocious capped disconnected a grounds show successful 2024. Revenue roseate by 78% to full $436 cardinal for the year, and the institution achieved 16 launches of its Electron orbital motorboat conveyance (used for tiny satellites), an summation of 60%.