Key Points
Vertex Pharmaceuticals recent decline appears excessive.
Nvidias expansion narrative and leadership in the AI chip sector remain compelling.
Alibaba offers an affordable entry point for AI exposure.
10 stocks we like better than Alibaba Group
What qualifies a stock as a growth pick? The key requirement is that it must be projected to expand at a pace well above the broader market average. This standard eliminates numerous candidates from consideration.
Still, identifying the strongest contenders can prove challenging. Several names stand out with strong potential. Below are three compelling growth stocks to consider purchasing now using $1,000, ordered by share price from highest to lowest.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More
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1. Vertex Pharmaceuticals

Some might view Vertex Pharmaceuticals (NASDAQ: VRTX) as an odd choice after the biotech shares dropped following its second-quarter report. Yet a contrarian perspective suggests the pullback enhances its appeal, with the price now under $400.

Vertex did not post weak Q2 figures. Rather, two pipeline developments surprised investors. An experimental pain treatment VX-993 missed the main goal in a phase 2 trial, leading the firm to halt further advancement. The FDA also indicated no clear route for a wide approval in peripheral neuropathic pain for suzetrigine.

The reaction seems excessive given Vertex strong fundamentals. Its cystic fibrosis portfolio continues to perform well. The rollout of the non-opioid pain therapy Journavx is advancing rapidly, prompting expanded promotional activities. The company is now focusing on diabetic peripheral neuropathy as the next use case and has begun a second phase 3 trial.

Additional catalysts include plans to seek approvals for zimislecel in severe type 1 diabetes next year, assuming favorable phase 3 data. It also aims for accelerated clearance of povetacicept for IgA nephropathy, contingent on positive interim phase 3 findings. Both late-stage efforts carry solid prospects for success.

2. Nvidia

One could note that Nvidia (NASDAQ: NVDA) carries a premium valuation and encounters rising rivals, even among major clients. Yet its expansion trajectory and commanding position in AI chips remain difficult to overlook.

A recurring pattern emerged in recent earnings from leading tech firms. They continue pouring resources into data centers to meet AI needs. This trend clearly benefits Nvidia, whose GPUs set the benchmark for model training and deployment.

The Blackwell architecture has widened its advantage. Even stronger chips are scheduled, with Nvidia shifting to yearly product cycles.

AI prospects extend beyond data centers. Robotics and autonomous vehicles present major openings in coming years. Another notable dip would create an ideal entry point, though one may not materialize soon. Shares currently trade below $200.

3. Alibaba Group Holding

For low-cost AI exposure, Alibaba Group Holding (NYSE: BABA) stands out. Shares change hands at about 14 times forward earnings, far below multiples of American peers.

Alibaba operates from China, which contributes to the discounted valuation. Concerns include potential government intervention and limits on U.S. AI chip exports, particularly Nvidias.

These worries hold merit. Yet Chinese authorities seek AI leadership and require Alibabas cloud operations to thrive. Local innovators like DeepSeek may help run advanced AI applications despite restricted access to top U.S. chips. The stock trades under $150.

Possible U.S. tariffs on Chinese goods could affect results indirectly. Even so, the shares appear positioned for gains despite trade uncertainties.

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Keith Speights holds shares in Vertex Pharmaceuticals. The Motley Fool owns stakes in and endorses Nvidia and Vertex Pharmaceuticals. The Motley Fool recommends Alibaba Group. The Motley Fool maintains a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.