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The focus on growth Nasdaq Composite Index index, which houses large companies such as Apple, Microsoftand Nvidia – has just had its worst day since 2022, falling 3.6% on Wednesday (24 July). It’s now down around 7% in just a few weeks. Looking for long-term ISA investments amid this sharp fall? Below are three of the top US-listed growth stocks you should consider buying now.
Historically low valuation
Firstly we have the company 'The Magnificent Seven' amazon (NASDAQ:AMZN) is a global leader in the online shopping and cloud computing industries (both of which are expected to grow substantially in the coming years).
A few weeks ago, amazon shares were trading at $200, but today they can be had for $180, a 10% discount.
I'm very bullish on the stock at the current price. Right now, the forward price-to-earnings ratio using next year's projected earnings per share is just 30. That's a historically low valuation for this company. And with earnings forecast to rise 57% this year and 27% next year, I think it's a bargain.
Of course, that valuation is still relatively high, so if there is a slowdown in amazon's e-commerce or cloud computing businesses in the near term, the stock could become volatile.
However, if I think about it in the long term, I expect the stock to go up. It is currently my largest investment.
Taking on Nvidia
Next, we have Advanced Micro Devices (NASDAQ: AMD) or “AMD” for short. It is a leading chip company (and a major rival to Nvidia).
In March, this stock was trading at around $210, but can now be had for $145, a 30% discount.
I've been thinking about buying AMD stock for a while now, and I'm very tempted to do so at current prices. The reason I'm bullish is that the company has been developing high-powered artificial intelligence (ai) chips designed to compete with Nvidia's ai products. I expect these chips to grow revenue in the coming years as the ai revolution gains traction.
Of course, AMD will have a lot of work ahead of it to compete with Nvidia, which is currently the undisputed leader in the ai chip market.
However, I think there is room for multiple players in this industry. And, given that the stock is trading on a forward-looking P/E ratio of 26 using the 2025 earnings forecast, I like the risk/reward setup.
Taking advantage of the travel boom
Finally, take a look Airbnb (NASDAQ: ABNB). Operates the world's largest home rental platform.
Airbnb shares were trading around $170 in March. However, they are currently trading at $144, down 15%.
In my opinion, this stock has huge potential. I expect the travel sector to boom over the next decade as cash-rich baby boomers retire, and I think this company will benefit.
Of course, the big risk here is government regulation. Barcelona recently announced a ban on short-term rentals starting in late 2028. We could see similar regulations in other major cities in the future.
However, the world is a big place and I see a lot of room for the platform to continue growing here.
Currently, the forward-looking price-earnings ratio is around 28, which I consider very reasonable.
