These hypergrowth stocks are forecast to produce sales growth of up to 598% in the new year.
Wall Street and investors have little to complain about with just a few days left before we turn the page to 2025. When the closing bell tolled on Dec. 24, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite had respectively galloped higher by 15%, 27%, and 33% for the year.
The prevailing theme for year two of the current bull market was, once again, the outperformance of growth stocks. The rise of artificial intelligence (AI) is just one example of investors being enamored with high-growth, innovative businesses that are reshaping the corporate landscape.
In 2025, some of Wall Street’s fastest-growing businesses on the planet are expected to deliver triple-digit sales growth. Just keep in mind that outsized sales growth doesn’t necessarily mean a stock is worth buying.
Lucid Air has struggled to gain share in the luxury electric-vehicle category.
Lucid Group: Estimated sales growth of 127% in 2025
The first high-octane growth stock expected to increase its revenue by triple digits next year is electric-vehicle (EV) manufacturer Lucid Group (LCID 3.12%). Based on consensus estimates from Wall Street, Lucid is projected to boost sales to $1.74 billion in 2025 from an estimated $766.8 million this year.
One of the biggest catalysts is the initial delivery of its second EV, the Lucid Gravity SUV, in the latter half of 2025. Orders for the company’s newest vehicle began on Nov. 7. The company is aggressively increasing its production capacity to meet orders for Gravity, which is a less-costly and more-practical vehicle than Air, the company’s sedan.
Lucid Group is also well-capitalized. It’s received investments from Saudi Arabia’s Public Investment Fund and appears to have more than enough capital to extend its cash runway well into 2026. This should give Lucid time to launch Gravity, ramp sales of its newest EV, and improve certain aspects of its production efficiency.
However, Lucid has whiffed on what looked to be its biggest competitive advantage of all. With Tesla de-emphasizing the importance of Model S and shifting its focus to the less-costly Model 3 sedan, the luxury sedan market was ripe for the taking by Lucid Air. Unfortunately, Lucid’s cash burn rate was too high for management to ignore, which caused the company to slow its pace of expansion. Lucid Air simply hasn’t been the home run that it was initially expected to be.
While tightening the company’s proverbial belt on costs is a good thing, Lucid Group isn’t particularly close to becoming profitable, either. Though the launch of Gravity will help scale revenue and modestly minimize losses, the consensus still calls for Lucid to lose around $2.7 billion in 2025. In other words, Lucid has yet to prove to Wall Street or investors that it has a viable operating model.
With the company likely needing additional capital raises before it has any chance of becoming profitable, Lucid Group has the look of a stock to avoid for now.
Image source: Getty Images.
Riot Platforms: Estimated sales growth of 113% in 2025
A second supercharged growth stock that Wall Street is expecting to deliver triple-digit sales growth in the new year is Bitcoin (BTC 1.66%) mining company Riot Platforms (RIOT -1.03%). The consensus calls for Riot to generate $782.5 million in sales in 2025, which is up 113% from the company’s estimated revenue this year.
Bitcoin is the largest cryptocurrency by market cap and has had a truly phenomenal year, with the token recently surpassing $100,000. Investors buying into Riot Platforms anticipate that cryptocurrency miners will benefit from Bitcoin’s rising price.
Riot uses farms of graphics processing units (GPUs) to solve complex equations and validate transactions on Bitcoin’s network. Being the first to resolve a group of transactions, known as a block, entitles companies like Riot to a reward. The current block reward is 3.125 Bitcoins. This means every time Riot solves a block, it’s receiving more than $300,000 in value (i.e., the value of 3.125 Bitcoins).
Riot Platforms has aggressively purchased GPUs to increase its hash rate, which is effectively the computational power of its hardware. The higher the hash rate, the greater the perceived likelihood of receiving Bitcoin block rewards.
However, even with Bitcoin rocketing to a fresh high, Riot Platforms hasn’t turned the corner to profitability. Based on data from MacroMicro.com, average Bitcoin mining costs have risen in lockstep with the price per token of the world’s largest digital currency, leaving little room for juicy margins. A six-digit price attached to Bitcoin offers no guarantee that Riot will become profitable on a recurring basis.
Furthermore, the halving of Bitcoin block rewards will make it increasingly more difficult and cost-intensive for Riot Platforms to earn Bitcoin. This is a high-cost, low-margin operating model that doesn’t appear built for the long term.
Serve Robotics: Estimated sales growth of 598% in 2025
A third company slated to be one of the fastest-growing stocks on the planet in 2025 is AI-powered delivery robot provider Serve Robotics (SERV 24.75%). Wall Street’s consensus calls for Serve to generate $13.31 million in sales next year, which represents a nearly 600% increase from what it’s expected to report for 2024.
Serve Robotics became a popular name among AI-focused investors in mid-July, which is when Wall Street’s artificial intelligence darling Nvidia announced that it had converted a debt note it held into 1,050,129 shares of Serve stock. Although Nvidia isn’t known as a huge investor, eyebrows are going to be raised when the leading provider of hardware for AI-accelerated data centers takes a common-equity stake in an early stage business.
Serve Robotics is currently in its expansion phase of testing food-delivery robots in Los Angeles, and is planning to expand to the Dallas Fort Worth market by the midpoint of 2025. It also has a partnership in place with Uber Eats to deploy 2,000 new delivery robots by the end of next year.
To finance its geographic expansion and the build-out of it’s AI-inspired delivery-robot network, the company has established an at-the-market financing program and closed out September with $50.9 million in cash and no debt. Selling stock will likely be a key source of funding as Serve Robotics expands its reach and tests new markets.
The issue is that Serve Robotics is worth $626 million, yet its entire operating model is still in the proof-of-concept stage. The company brought in less than $183,000 in combined delivery service revenue and branding fees during the third quarter and lost more than $8.4 million from its operations. It’s going to be quite some time before investors have any idea of whether or not food-delivery robots are a viable business model.
Though Serve Robotics holds the distinction of being one of Nvidia’s few public investments, it appears to be priced for perfection given its countless unknowns.
