2 Growth Stocks and 1 ETF to Buy Even If the Stock Market Keeps Falling in 2025

So far, 2025 hasn’t been a great year for growth stocks. At the time of this writing, the growth-heavy Nasdaq Composite is down by more than 10% year to date — underperforming the S&P 500 and Dow Jones Industrial Average — both of which are also down, but by lesser degrees.

However, growth stocks and exchange-traded funds (ETFs) that hold growth stocks can be excellent investments for folks who can endure some volatility and have long-term time horizons.

Here’s why Broadcom (NASDAQ: AVGO), Trimble (NASDAQ: TRMB), and the Invesco QQQ Trust (NASDAQ: QQQ) stand out as great buys now.

Daniel Foelber (Broadcom): Network connectivity and semiconductor giant Broadcom has given up all the gains it made after reporting its fiscal 2024 fourth-quarter results in December. The stock rallied hard after the report on management’s strong guidance and the company’s multiyear growth opportunities in artificial intelligence (AI), lifting it into the $1 trillion club. That surge in enthusiasm proved short-lived. Broadcom has been one of the worst-performing S&P 500 components in 2025. But there are reasons to be optimistic about the stock over the long term.

AI has grown from a relatively small part of Broadcom’s business to one that provides more than a quarter of total revenue. Unlike pure-play AI companies, it has a diverse array of legacy business units, including networking, cybersecurity, and other global connectivity products like ethernet adapters and switches.

In the fiscal 2025 Q1 report it delivered in early March, Broadcom expressed enthusiasm for its XPU accelerator chips, which can perform specific tasks at a lower cost than graphics processing units (GPUs). One concern for that part of the business, however, is that hyperscalers may slow their spending on new cloud infrastructure due to rising economic uncertainty.

A handful of hyperscaler customers provide a significant slice of the company’s revenue. On the March earnings call, Broadcom said that three hyperscale customers will generate what it calls a “serviceable addressable market” in the range of $60 billion to $90 billion in fiscal 2027. So a lot of Broadcom’s AI growth is based on high capital expenditures by big tech companies to fuel AI demand.

Being dependent on a handful of buyers is a double-edged sword — on the one hand, it can amplify growth during periods of expansion, but it also leaves a company vulnerable to a rapid deceleration. With Broadcom, however, it’s worth remembering that the hyperscalers fueling its AI business may be different from the customers driving sales in other areas of the business, like enterprise software and networking.

All told, Broadcom stands out as a solid way to invest in AI without going all-in on the theme. The stock trades at a reasonable forward price-to-earnings ratio of 25.7, and pays a growing dividend with a 1.4% yield at the current share price.

Lee Samaha (Trimble): Workflow technology company Trimble has excellent secular growth prospects. In plain English, sales of its solutions can grow even if the economy is weak. To be clear, Trimble will suffer if the economy weakens, but its secular growth drivers will support it and provide super growth when the economy improves.

The company offers hardware, software, and services that help customers in construction/infrastructure, the geospatial industry, transportation, utilities, and agriculture precisely manage their daily workflows. Trimble’s hardware gathers precise location-based data (for example, where transportation fleets are or what construction activities are occurring), which enables teams to collaborate digitally on large projects.

That hardware can be connected to the cloud to allow multiple users to contribute and improve the project, while advanced data analysis can help teams improve workflows in real time. For example, in construction, machinery can be precisely monitored and guided to improve productivity, and construction progress can be precisely monitored. Furthermore, a digital model of each project is created, allowing multiple users to more easily collaborate on it.

The key word here is “productivity,” which encompasses such things as reducing costs, improving quality, and ensuring the timely completion of projects. Even when the economy is bad, improvements on those things can provide significant value to clients. As such, you can feel confident Trimble will grow its annualized recurring revenue. In fact, it grew organic annualized recurring revenue by 16% in 2024, and management expects 13% to 15% growth in 2025.

This is a growth business, and since the adoptions of digital technology and advanced analytics are trends still in their early innings, Trimble has a bright future.

Scott Levine (Invesco QQQ Trust): The Invesco QQQ Trust ETF is a solid choice for folks who want exposure to the market’s top growth stocks. Tracking the largest 100 non-financial companies listed on the Nasdaq exchange, the fund includes many AI stocks, as well as those representing other growth industries. And it’s not as if investors have to pay exorbitant fees to avail themselves of this option. The Invesco QQQ ETF has a low expense ratio of 0.2%.

From companies developing chatbots and other AI tools to semiconductor stocks, the top positions in the fund provide broad exposure to the rapidly burgeoning AI industry. Apple, Microsoft, and Nvidia stand as the top three holdings with weightings of 9.1%, 7.9%, and 7.6%, respectively. In fact, all of the “Magnificent Seven” stocks are among its 10 largest positions.

Besides AI, the fund offers growth opportunities through stocks like Linde, an industrial gas supplier that operates various hydrogen assets, including a pipeline network about 600 miles long, nearly 200 refueling stations, and 80 hydrogen electrolysis plants. Moreover, Tesla and Nvidia provide exposure to the electric vehicle (EV) industry.

While there’s no guarantee that the Invesco QQQ Trust ETF will outperform the market in the years ahead, it’s certainly worth noting that over the past 15 years, it has far outpaced the market. Since 2010, the S&P 500 has provided a total return of 551%, while the Invesco fund has soared more than 1,000%.

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Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Linde, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Broadcom and Trimble and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

2 Growth Stocks and 1 ETF to Buy Even If the Stock Market Keeps Falling in 2025 was originally published by The Motley Fool