3 Growth Stocks Ready to Shine Bright This Summer

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As we enter the second half of 2023, growth stocks are showing promise. July has historically been a favorable month for tech-heavy Nasdaq stocks, with consistent gains throughout the past 15 years. While these patterns may be coincidental, it’s worth considering these three top growth stocks for potential summer investments.

Here are three of the top growth stocks I think are worth buying for this summer. These are stocks I either own or intend to own, if any significant dips materialize in the coming months. Let’s dive into these stocks.

Qualcomm (QCOM)

Qualcomm (NASDAQ:QCOM) is a prominent player in the mobile processor industry, poised to capitalize on the increasing demand for 5G-enabled devices. With 5G technology driving substantial growth in the mobile market, Qualcomm’s expertise in 5G chip development positions the company favorably to capture a significant market share.

QCOM is currently facing a downturn along with other semiconductor stocks, but it is likely near the bottom. Sales are expected to decline this year but recover in the next two years, presenting potential upside. Despite moderate growth projections, there could be positive surprises if the handset market improves.

Qualcomm boasts strong financials with a three-year revenue growth rate of 25% and a book growth rate of 55.3%. Surprisingly, the market undervalues QCOM with a low forward multiple of 12.21, placing it ahead of 86.26% of its competitors in terms of discounted earnings.

Amazon (AMZN)

Amazon (NASDAQ:AMZN) has a significant advantage in leveraging AI due to its vast customer data, positioning the company as a strong contender in the tech sector. The potential benefits of AI for Amazon include enhancing search capabilities, anticipating future purchases, and strengthening its AI offerings within Amazon Web Services (AWS).

Amazon’s  stock has surged by more than 51% this year, driven by excitement surrounding artificial intelligence advancements. However, the company faces challenges, including slower AI progress compared to competitors like Microsoft (NASDAQ:MSFT) and concerns about its high valuation. Despite these factors, Amazon’s e-commerce and AWS businesses continue to generate revenue and income growth. AWS is expected to benefit from the shift toward digitization and AI. Nevertheless, Amazon also faces regulatory scrutiny, with the Federal Trade Commission reportedly preparing for a potential antitrust lawsuit.

Investing in Amazon and other long-term tech stocks offers smart investors sustainable returns with favorable growth prospects and attractive valuations.

Albemarle (ALB)

Albemarle (NYSE:ALB) is the leading choice for lithium stocks, given its undervalued status and promising growth potential. As global lithium supplies fall short of electric vehicle demand, Albemarle stands to benefit. With anticipated revenue growth of 35% to 55% in 2023 and a projected 20% to 30% annual increase in lithium sales volume through 2027, the company ensures robust growth and improved price realization.

Albemarle is well-positioned to capitalize on the growing demand for lithium driven by the rise of electric vehicles. With expanded capacity and ambitious growth targets, the company is primed for revenue and EBITDA growth. Despite price fluctuations, Albemarle maintains a consistent performance and a strong dividend history spanning 28 years.

Regardless of a recent correction in lithium prices, the increasing demand for electric vehicles suggests a continued upward trend for lithium. Limited supplies are unlikely to meet the growing EV demand, reinforcing the positive outlook for the lithium market.

On the date of publication, Chris MacDonald has a position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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