Nasdaq Rebound: 3 Stocks to Buy Before They Hit New All-Time Highs

The stock market has rallied strongly this spring, led once again by the tech-heavy Nasdaq. While the index is set up for another strong year of outperformance, there are stocks well off their highs that investors can scoop up before they join the rally.

Let's look at three Nasdaq growth stocks to buy right now before they rally to new all-time highs.

  1. Palantir

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NASDAQ: PLTR

Palantir Technologies

Today's Change

(-0.41%) $-0.56

Current Price

$136.85

Key Data Points

Market Cap

$328B

Day's Range

$134.30 - $139.02

52wk Range

$118.93 - $207.52

Volume

1.1M

Avg Vol

46.8M

Gross Margin

84.07%

While Palantir (PLTR 0.41%) has gotten caught up in the software-as-a-service (SaaS) stock sell-off, it is proving to be one of the most important companies in the AI space, and its growth has been nothing short of spectacular. Nonetheless, investors can pick up the stock 33% off its highs.

Palantir's AI platform (AIP) has become essential for helping organizations use AI to help solve real-world problems. Instead of trying to build the next great AI model, the company leaned into its data gathering and analytics background to create a platform that can gather an organization's data from disparate sources and then link it to real-world assets and processes to harness the power of third-party AI models while significantly reducing AI hallucinations (errors). This has allowed its customers to use AI to help solve long-standing issues, and has led to significant and accelerating growth for Palantir.

Palantir grew its revenue by 85% last quarter, its eleventh straight quarter of revenue growth acceleration. Impressively, this was driven by a combination of new U.S. commercial customer adds (up 42%) and existing customers spending more money (150% net dollar retention). Given its operational momentum, this is a stock that can rally to new highs.

  1. Microsoft

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NASDAQ: MSFT

Microsoft

Today's Change

(-0.06%) $-0.24

Current Price

$418.85

Key Data Points

Market Cap

$3.1T

Day's Range

$416.35 - $424.40

52wk Range

$356.28 - $555.45

Volume

1.3M

Avg Vol

34.1M

Gross Margin

68.31%

Dividend Yield

0.85%

Another top Nasdaq stock caught up in the SaaS sell-off is Microsoft (MSFT 0.06%), which is down about 25% off its highs. However, like Palantir, the company has been hitting on all cylinders.

Microsoft's growth is being led by its cloud computing arm Azure, which grew its revenue by 39% last quarter. Meanwhile, with over $600 billion in cloud commitments and Azure AI revenue surging (up 123% last quarter), its cloud business continues to have a long runway of growth still in front of it.

While there has been some fear of Microsoft being an AI loser on the software side, its solutions are so embedded in enterprise workflows and security that this seems unlikely. In fact, its Microsoft 365 Commercial business is starting to gain strong momentum, as enterprises are increasingly adopting its Copilot AI assistant. It saw a whopping 250% year-over-year increase in paid Copilot users last quarter, bringing the total to 20 million seats, while the segment's overall revenue climbed 17%. Notably, the company also owns a 27% stake in OpenAI.

While the stock has struggled, it has the ingredients in place to rally to new all-time highs.

Image source: Getty Images.

  1. AppLovin

Expand

NASDAQ: PLTR

Palantir Technologies

Today's Change

(-0.41%) $-0.56

Current Price

$136.85

Key Data Points

Market Cap

$328B

Day's Range

$134.30 - $139.02

52wk Range

$118.93 - $207.52

Volume

1.1M

Avg Vol

46.8M

Gross Margin

84.07%

Down about 35% from its highs, AppLovin (APP 0.87%) is a stock with upcoming catalysts that could surge to new all-time highs. The adtech company helped revolutionize the gaming app advertising industry with the introduction of its AI-powered Axon 2 machine learning engine a few years back, and that has continued to fuel strong growth, including a 59% jump in revenue last quarter. Impressively, this growth has also been accompanied by nice gross margin improvement and a check on corporate expenses.

Now AppLovin has a big opportunity as it opens up its adtech platform to a much wider audience through a new self-service platform. This should draw in smaller advertisers that previously did not have access to its services. It is also looking to expand into new verticals outside of gaming, such as e-commerce, thereby greatly increasing its total market opportunity.

Given its already strong growth and new opportunities for growth, the stock has the potential to soar to new highs in a market rally.

PLTR-0.52%
MSFT-0.54%
APP-0.93%
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