The Nasdaq Composite (^IXIC -2.70%) is down more than 7% year to date at the time of writing. Sudden dips in the stock market are not fun, but they are common and can help you buy shares of quality growth stocks at better prices.
No one knows where the stock market is headed in 2025, but if it continues to fall, there are two growing companies I would buy in a heartbeat. These stocks already trade at reasonable valuations relative to their growth prospects, but if they fall any lower, they would be screaming bargains.
1. Nvidia
A short-term dip in the stock market is not going to slow the long-term adoption of artificial intelligence (AI). Big tech companies are spending billions of dollars on AI technology to position for long-term growth. As the leading supplier of data center hardware, Nvidia (NVDA -1.51%) is one stock I would buy on a sell-off. It has a long record of generating stellar returns and should grow into a more valuable company in 10 years.
Nvidia shares currently trade at a high price-to-earnings ratio of 38, but this valuation seems about right considering its market leadership and growth opportunities. The market for AI servers is expected to grow more than 10 times in the next decade, according to Statista. Nvidia’s graphics processing units (GPUs) are the backbone of these systems. Growing demand for its chips pushed its revenue up 114% year over year to $130 billion last year.
Nvidia’s lead in GPUs is unmatched. Not only are its GPUs the best-performing chips on the planet, but Nvidia has also added services and software around its hardware to create a stickier customer relationship. Leading cloud service providers are lining up to buy Nvidia’s new Blackwell AI computing platform. Blackwell generated $11 billion in sales last quarter, and it will continue to grow.
Analysts expect Nvidia’s revenue to reach $205 billion this year (fiscal 2026), representing a year-over-year increase of 57%. Nvidia is well on track to capture a large percentage of spending on AI infrastructure in the coming years. The AI market is expected to grow 26% per year to reach $1 trillion by 2031, according to Statista. I would buy the dips, because Nvidia’s business should grow right along with this market.
2. Take-Two Interactive
Take-Two Interactive (TTWO -1.72%) is one of the top video game makers in an industry valued around $200 billion, or more, depending on the source. I would buy this stock on dips because it has delivered market-beating returns over the last decade, with the stock soaring more than 700%, and it has a major growth catalyst coming up.
Grand Theft Auto is one of the best-selling titles in the video game industry. Take-Two doesn’t release a new version in the series very often, so there is tremendous buzz for the release of Grand Theft Auto VI later this year. Each of the five main releases in the series over the last few decades sold more copies than the previous title. When Grand Theft Auto V was released in Take Two’s fiscal year 2014, revenue jumped 93%. The game has sold more than 210 million copies to date.
The ability for Take-Two to make money off this game for years after release with in-game updates is why a new Grand Theft Auto release is a big deal for the company’s growth prospects. Analysts expect Take-Two’s revenue to reach $8.2 billion in fiscal 2026, up 45% over the fiscal 2025 consensus forecast.
Take-Two also makes other popular games like NBA 2K, Sid Meier’s Civilization, and Borderlands that help it generate more than $5 billion in annual revenue. A key focus for the company is to release more titles in the coming years to diversify its lineup and fuel shareholder returns.
Management says this year is shaping up to be one of the strongest years in the company’s history, but it’s just getting started. Analysts expect its earnings to grow at an annualized rate of 41% over the next few years. The stock is already trading at a reasonable 28 times fiscal 2026 earnings estimates. If the stock falls from here, it would be a no-brainer buy Take Two shares ahead of the Grand Theft Auto release.
John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia and Take-Two Interactive Software. The Motley Fool has a disclosure policy.
