Investors have had a crazy ride since the start of this decade. In each of the first four years, the three major stock indexes alternated between bear markets and bull markets, with growth fueled by growth. Nasdaq Composite (NASDAQ INDEX: ^IXIC) endure the wildest oscillations.
Despite losing 33% of its value during the 2022 bear market, the innovation-driven Nasdaq Composite has gained 49% since the start of 2023 and firmly established itself in a new, albeit young, bull market.
The great thing about bull markets is that incredible deals can always be discovered. Whether the Nasdaq Composite is hitting new highs or, in this case, down 5% from its record closing high, opportunistic investors willing to put in the work can still find growth stocks at a discount.
Here are four dominant growth stocks you’ll regret not buying in the new Nasdaq bull market.
Intel
The first sensational growth stock just waiting to be bought in this relatively young Nasdaq bull market is semiconductors. Intel (NASDAQ:INTC).
Although Intel doesn’t fit the traditional definition of a growth stock (sales are expected to be relatively flat year over year), its earnings per share (EPS) are expected to more than quadruple from 1. 05 dollars announced. 2023 to an estimated $4.44 by 2027. An expected compound annual earnings growth rate of 43.4% over the next four years certainly qualifies Intel as a growth stock.
To be sure, Intel faces tangible headwinds. Advanced microsystems has reduced its central processing unit (CPU) market share. Sales of personal computers (PCs) have not rebounded as quickly as expected after a surge in sales early in the pandemic. And Intel’s Foundry Services segment is losing more money than initially expected.
Despite these concerns, Intel retained the lion’s share of the PC and data center processor market. Even after ceding some of its share to AMD, its CPU base remains a primary driver of cash flow and provides Intel with enough capital to reinvest in high-growth initiatives.
Speaking of high-growth initiatives, Intel recently unveiled its Gaudi 3 graphics processing unit (GPU), which will take on NvidiaThe H100 GPU in data centers with high computing capacity. As long as AI GPUs remain rare, there will likely be a strong market for Intel’s Gaudi 3 chip.
Finally, Intel is rebuilding its foundry operations from the ground up. While it’s not a cheap or fast ramp, Intel has a plan to become the world’s second-largest chipmaking company by the end of the decade. Patient investors should be richly rewarded.
BioMarin Pharmaceutical
A second dominant growth stock you’ll regret not entering into the Nasdaq Composite in a bull market is the rare disease drug developer. BioMarin Pharmaceutical (NASDAQ:BMRN).
If you’re looking for a reason why Wall Street is currently down on BioMarin, weak sales of…
