The Smartest Growth Stocks to Buy With $500 Right Now
One of the very best methods to earn cash within the inventory market is to purchase and maintain high-growth firms over the long term. After all, development shares signify firms able to rising earnings quicker than the broader market, and this normally interprets into wholesome inventory value upside.
We are going to take a more in-depth have a look at two such growth stocks — Applied Digital (APLD 3.66%) and Western Digital (WDC +0.21%) — you could purchase with simply $500 in investable money (after assembly your bills, clearing high-interest debt, and saving for troublesome occasions). You can contemplate placing that cash into these shares, both individually or mixed, and anticipate strong long-term features.
Image supply: Getty Images.
Applied Digital: Building information facilities for a man-made intelligence (AI) world
The demand for devoted synthetic intelligence (AI) information facilities is rising quickly. From hyperscalers to AI firms, everyone seems to be wanting to get their fingers on computing capability to run AI workloads within the cloud.
Today’s Change
(-3.66%)$-1.33
Current Price
$35.02
Key Data Points
Market Cap
$10.0B
Day’s Range
$34.82 – $38.52
52wk Range
$4.20 – $42.27
Volume
1.8K
Avg Vol
23M
Gross Margin
27.07%
Applied Digital is benefiting big-time from the booming AI data center demand. After all, the corporate is within the enterprise of designing, establishing, and working devoted AI information facilities for hyperscalers and neocloud firms. Not surprisingly, Applied Digital has witnessed gorgeous income development.
APLD Revenue (TTM) information by YCharts
Its high line jumped by 139% yr over yr within the third quarter of fiscal 2026 (which ended on Feb. 28) to $126.6 million. That determine is poised to speed up considerably because it completes development of its information middle services. After all, Applied Digital already has a $16 billion contracted lease income pipeline from CoreWeave and one other hyperscaler for 15 years.
The firm is constructing 400 megawatts (MW) of information middle capability for CoreWeave, together with one other 200 MW for one more hyperscaler. It lately accomplished development of 100 MW of information middle capability for CoreWeave, which suggests it has began producing lease income from this web site. The completion of the remaining 500 MW of capability for these two clients ought to additional speed up Applied Digital’s development.
Even higher, Applied Digital is concentrated on increasing its enterprise and lately broke floor on a brand new information middle campus within the southern US The firm factors out that this facility can deal with up to 300 MW of “high-density AI workloads, with initial operations expected to begin in mid-calendar 2027.” So, it’s simple to see why analysts predict its income development to take off.
APLD Revenue Estimates for Current Fiscal Year information by YCharts
Not surprisingly, Applied Digital is rated as a purchase by all 13 analysts protecting the inventory. Its 12-month median value goal of $43 factors to a possible 37% soar from present ranges, suggesting that growth-oriented traders can nonetheless purchase it following the 27% spike in its inventory value this yr.
Furthermore, the numerous spike that is anticipated in Applied Digital’s income sooner or later, pushed by its strong lease income pipeline and tasks beneath improvement, may pave the way in which for larger features in the long term. All this makes this stock AI value shopping for earlier than it goals larger.
Western Digital: Severe scarcity of storage drives ought to propel the inventory larger
Shares of storage expertise supplier Western Digital have soared 123% in 2026, as of this writing. The inventory’s gorgeous surge is the results of outstanding development in its income and earnings, fueled by a positive demand-supply scenario in its finish market.
The hard-disk drives (HDDs) that Western Digital manufactures are in red-hot demand in AI information facilities, the place they’re being deployed to retailer the large quantities of information wanted to run AI workloads. Market analysis firm IDC estimates that world information technology may triple between 2024 and 2029.
Today’s Change
(0.21%)$0.84
Current Price
$403.96
Key Data Points
Market Cap
$137B
Day’s Range
$400.50 – $414.41
52wk Range
$40.18 – $416.37
Volume
2.3K
Avg Vol
9.4M
Gross Margin
42.68%
Dividend Yield
0.11%
As a outcome, AI information facilities have been shopping for up HDDs, as they permit them to retailer information cost-effectively. However, the unimaginable demand from this section has created a extreme scarcity of HDDs. Western Digital has already offered out its HDD capability for 2026. Its clients at the moment are getting into into provide agreements for 2027 and 2028 to safe HDD capability, suggesting the scarcity will proceed.
So, there’s a strong likelihood that the value hikes within the HDD market are right here to keep as demand outpaces provide. This explains why Western Digital’s backside line is poised for a large soar from final fiscal yr’s stage of $4.93 per share.
WDC EPS Estimates for Current Fiscal Year information by YCharts
Assuming Western Digital’s earnings certainly soar to $19.09 per share after a few fiscal years, and it trades at 32 occasions earnings at the moment (in keeping with the tech-laden Nasdaq-100 index’s earnings a number of), the inventory may attain $611. That’s a possible soar of 57%, which is why traders would do effectively to add this tech stock to their portfolios earlier than it’s too late.
