Growth stocks are often thought of as risky investments in a volatile market because they are still in the process of evolving. While that is true, growth stocks have the potential to generate significant returns. 

The first growth stock on my list is Nu Holdings (NU), a fintech company with a rapidly expanding customer base. The second on my list is Qualcomm (QCOM), which continues to push the boundaries of artificial intelligence (AI) and computing.

Let’s find out why Wall Street expects these two growth stocks to increase by more than 75% over the next 12 months.

Growth Stock No #1: Nu Holdings

Brazil-based Nu Holdings (NU), also known as Nubank, has made waves in the fintech industry as one of the world’s leading digital banking platforms. Nu Holdings is a digital-first bank that offers no-fee credit cards, savings accounts, personal loans, insurance, and investment services. 

What distinguishes Nu is its ability to serve unbanked and underbanked populations throughout Latin America, allowing it to expand its customer base rapidly. Nu Holdings has seen impressive revenue growth in recent quarters. The stock is down less than 1% in the year to date. 

With its rapidly expanding customer base and revenue, Nu Holdings is gradually transitioning from a high-growth, loss-making fintech into a profitable business. As of 2024, the company had 114.2 million customers. In the most recent fourth quarter of 2024, Nu’s revenue increased 43% to $11.5 billion, while adjusted net income increased 85% to $2.2 billion. In addition, its monthly average revenue per active customer rose by 15.6%. Over the last few quarters, NU’s gross margins have consistently ranged between 40% and 50%. Nu is aggressively expanding into Mexico and Colombia, where digital banking adoption is still in its early stages. Additionally, the company is expanding beyond credit cards and banking services to include cryptocurrency trading, insurance, and wealth management.

Analysts predict a 25.5% increase in revenue to $14.5 billion in 2025, with earnings rising 29.1% to $0.52 per share. In 2026, revenue and earnings are expected to grow by 28.6% and 41.1%, respectively. Currently, NU stock is trading at 20x forward earnings. Based on the company’s projected massive growth, the stock appears to be a reasonable buy right now.

On Wall Street, Nu Holdings stock is rated a "Moderate Buy.” Of the 13 analysts covering the stock, seven rate it a “Strong Buy,” four rate it a “Hold,” and two say it is a "Strong Sell.” The average analyst target price of $15.57 suggests the stock can go as high as 50% over current levels. Plus, the high target price of $19 implies that the stock could rise as much as 83% over the next 12 months.

Nu Holdings is a high-growth fintech stock with significant long-term potential, driven by strong revenue growth and healthy profit margins. NU stock could be a good choice for investors looking to gain exposure to digital banking and financial inclusion in emerging markets. However, given the risks associated with growth stocks, it may be best for investors with a high risk tolerance.

Growth Stock No# 2: Qualcomm

With a market cap of $169 billion, Qualcomm has established itself as a key player in the semiconductor industry. The company is well-known for its wireless technology innovations and contributions to the development of 3G, 4G, and 5G networks. Its Snapdragon processors are used in many smartphones, reinforcing the company’s market leadership.

QCOM stock is also down less than 1% in the year to date. 

Qualcomm operates in two business segments. The QCT (Qualcomm CDMA Technologies) segment is its largest revenue generator, focusing on semiconductor products that power smartphones, tablets, laptops, automotive applications, and the Internet of Things (IoT). This segment’s revenue increased 20% to $10 billion in the first quarter of fiscal 2025, marking the first time it had surpassed the $10 billion mark in one quarter. 

This success was largely driven by record revenues in handsets and automotive, demonstrating the effectiveness of Qualcomm’s diverse growth strategy. In the quarter, automotive and IoT chip sales increased by 61% and 36%, respectively, while handset chip sales increased by 13% year-over-year. Its other segment, QTL (Qualcomm Technology Licensing), generates revenue by licensing patents. This segment’s revenue increased 5% in the quarter, reaching $1.5 billion. In the quarter, total revenue increased 18% to $11.7 billion, while adjusted earnings per share increased by 24% to $3.41. With a strong start to fiscal 2025, Qualcomm is well-positioned to capitalize on AI, automotive, and connectivity trends. As part of its long-term strategy, Qualcomm reaffirmed its goal of $22 billion in non-handset revenue by 2029. Management stated that the company is focusing on advanced connectivity, computing, and edge AI technologies to propel its expansion into new industries.

For fiscal 2025, analysts expect a 11.5% increase in revenue, with earnings rising by 14.8%. Revenue and earnings are expected to increase by 4.2% and 4.6%, respectively, in fiscal 2026. Currently, QCOM stock is trading at 13 times forward 2025 earnings, compared to its five-year historical price-to-earnings average of 23x.

On Wall Street, Qualcomm stock is rated a "Moderate Buy.” Of the 32 analysts covering the stock, 16 rate it a “Strong Buy,” one rates it a “Moderate Buy,” 14 rate it a “Hold,” and one rates it a "Strong Sell.” The average analyst target price of $201.44 suggests the stock can gain as much as 32% over current levels. Plus, the high target price of $270 implies that the stock could rise as much as 77% over the next 12 months.