Investing in growth stocks can give you exposure to high-growth industries and compelling long-term returns. Some growth stocks generate higher returns in one year than what the S&P 500 and Nasdaq Composite do in five years.

While investors can choose from many industries, few of them have as much potential as artificial intelligence. According to Grand View Research, the global AI market is projected to maintain a 36.6% compounded annual growth rate from now until 2030.

The three growth stocks on this list all benefit from artificial intelligence. They have also outperformed major benchmarks over the long run. Each of these top growth stock picks recently reported rising revenue and profit margins.

Crowdstrike (CRWD)

Cyber attacks can be quite expensive. The global average cost of a data breach is $4.88 million. While these attacks can result in companies losing valuable assets, there are a bunch of legal costs after a cyberattack. Furthermore, getting hit by a cyberattack can halt operations while damaging the trust companies have built with their customers.

Cybersecurity is the best way to deal with these attacks, and as the attacks become more frequent, effective security measures become more important. A good cybersecurity plan starts with the right software, and Crowdstrike (NASDAQ:CRWD) is one of the leaders.

The company recovered from a global IT outage last summer, and shares are now up by 38% over the past year. The stock has also rallied by more than 500% over the past five years and has a market cap just shy of $100 billion.

Crowdstrike has a recurring revenue model that leads to steady revenue and net income growth. The firm reported $4.02 billion in annual recurring revenue in Q3 FY25, which is a 27% year-over-year increase. Those results came amid headwinds from “the July 19th incident,” which should continue to fade with each passing quarter. Crowdstrike’s 97% gross retention among its customer base suggests that most customers are willing to forgive the cybersecurity firm for its previous blunder.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) has been a top stock for a few years. A 168% gain over the past year certainly helps, but Nvidia has also been thrust into the spotlight. People have heard about Nvidia stock even if they don’t follow the stock market or own any assets. It’s almost become synonymous with the stock market itself, as any fluctuations in Nvidia heavily impact the S&P 500 and Nasdaq Composite.

Many tech giants have committed to ramping up their AI spending, and that puts Nvidia in a prime position to outperform the stock market. Nvidia is likely to reclaim its crown as the most valuable publicly traded corporation, and there’s even some chatter about Nvidia becoming the first $10 trillion company. Nvidia shares would have to triple to reach the proposed market cap.

It’s easy to see why people are enthusiastic about the stock. It’s the AI chip leader and has reported exceptional financial growth for several years. High demand for Blackwell helped Nvidia boost revenue by 94% in Q3 FY25. Revenue onceagain reached a record high, and net income also jumped by 109% year-over-year.

Nvidia is still growing at a fast pace, but it’s been trading sideways since mid-October. It could be the calm before a surge.

Argan (AGX)

While Nvidia has taken center stage, Argan (NYSE:AGX) is an under-the-radar stock pick that has outperformed Nvidia over the past year. AGX shares are up by 231% during that stretch. The stock even offers a 1% dividend for good measure.

Argan is an energy infrastructure provider that offers services for the power industry, construction clients, and telecom companies. The company also helps with developing data centers. This distinction, plus Argan’s experience with energy infrastructure, set it up to benefit nicely from the AI boom.

Investors can see tangible benefits take shape in the company’s financial results. Argan reported $257 million in Q3 2024 revenue, which represents a 57% year-over-year improvement. Net income more than quintupled year-over-year, resulting in a 10.9% net profit margin.

Revenue and net income are surging for the company, and the firm also raised its annual dividend by 25% this year, bringing it from $1.20 per share to $1.50 per share. While investors aren’t loading up on AGX for the dividend, a 25% dividend boost is a very healthy sign for the AI beneficiary’s future.

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