10 Best High Growth Stocks With Great Momentum for February 2026
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Market Overview & Selection Criteria
The technology and semiconductor sectors have demonstrated exceptional momentum throughout 2025, driven by sustained demand for artificial intelligence infrastructure, cloud computing, and advanced chip manufacturing. This curated collection of 10 stocks represents companies with strong fundamental metrics, high-quality ratings, and significant growth trajectories.
Our selection methodology prioritizes companies exhibiting robust free cash flow generation, healthy gross margins, and strong return on invested capital (ROIC). Each stock has been evaluated using ValueSense's intrinsic value toolkit, which combines multiple valuation approaches to identify companies trading at compelling valuations relative to their growth potential. The portfolio spans semiconductor manufacturers, AI infrastructure providers, and enterprise software leaders—sectors positioned to benefit from ongoing digital transformation and AI adoption.
Featured Stock Analysis
NVIDIA Corporation (NVDA)
| Metric | Value |
|---|---|
| Market Cap | $4,676.7B |
| Quality Rating | 8.2 |
| Intrinsic Value | $85.9 |
| 1Y Return | 53.3% |
| Revenue | $187.1B |
| Free Cash Flow | $77.3B |
| Revenue Growth | 65.2% |
| FCF margin | 41.3% |
| Gross margin | 70.1% |
| ROIC | 161.5% |
| Total Debt to Equity | 9.1% |
Investment Thesis
NVIDIA stands as a cornerstone holding in any technology-focused portfolio, commanding a $4.68 trillion market capitalization with a quality rating of 8.2/10. The company has delivered exceptional financial performance, generating $187.1 billion in annual revenue with a remarkable 65.2% revenue growth rate. NVIDIA's dominance in AI accelerators and data center GPUs positions it at the epicenter of the artificial intelligence infrastructure buildout. The company's 70.1% gross margin reflects its pricing power and competitive moat, while its 161.5% ROIC demonstrates extraordinary capital efficiency—among the highest in the technology sector.
The company's free cash flow generation of $77.3 billion with a 41.3% FCF margin provides substantial capital for shareholder returns and continued R&D investment. Over the past 12 months, NVIDIA shares have appreciated 53.3%, reflecting investor confidence in sustained AI demand. With a conservative 9.1% debt-to-equity ratio, the company maintains financial flexibility to navigate market cycles while investing in next-generation chip architectures.
Key Catalysts
- Continued AI infrastructure spending from hyperscale cloud providers
- New GPU architecture launches and product refreshes
- Expansion into automotive and edge AI markets
- Data center market share gains against competitors
Risk Factors
- Concentration risk in AI/data center revenue streams
- Geopolitical tensions affecting semiconductor exports
- Potential cyclicality in capital spending by cloud providers
- Increasing competition in AI accelerator market
Alphabet Inc. (GOOGL)
| Metric | Value |
|---|---|
| Market Cap | $4,081.5B |
| Quality Rating | 7.9 |
| Intrinsic Value | $221.2 |
| 1Y Return | 68.7% |
| Revenue | $385.5B |
| Free Cash Flow | $73.6B |
| Revenue Growth | 13.4% |
| FCF margin | 19.1% |
| Gross margin | 59.2% |
| ROIC | 31.4% |
| Total Debt to Equity | 8.7% |
Investment Thesis
Alphabet represents one of the world's most diversified technology platforms, with a $4.08 trillion market cap and a quality rating of 7.9/10. The company generates $385.5 billion in annual revenue across search, advertising, cloud services, and emerging ventures. While revenue growth of 13.4% is more moderate than pure-play AI companies, Alphabet's 59.2% gross margin and $73.6 billion in free cash flow demonstrate the durability of its core business model. The company's 31.4% ROIC reflects efficient capital deployment across its diversified portfolio.
Alphabet's strategic positioning in AI through investments in Gemini, cloud infrastructure, and enterprise solutions positions it to capture value across multiple AI adoption waves. The company's 8.7% debt-to-equity ratio provides substantial financial flexibility, while its massive free cash flow generation supports ongoing innovation investments and shareholder returns. Over the past year, GOOGL shares have returned 68.7%, reflecting renewed investor confidence in the company's AI strategy and advertising resilience.
Key Catalysts
- Gemini AI integration across Google products and enterprise offerings
- Google Cloud acceleration and market share gains
- AI-powered search enhancements and monetization improvements
- YouTube and advertising platform resilience
Risk Factors
- Regulatory scrutiny and antitrust concerns
- Search disruption from AI-native competitors
- Execution risk on AI product launches
- Dependence on advertising market health
Taiwan Semiconductor Manufacturing Company Limited (TSM)
| Metric | Value |
|---|---|
| Market Cap | $1,730.0B |
| Quality Rating | 8.2 |
| Intrinsic Value | $484.8 |
| 1Y Return | 58.8% |
| Revenue | NT$3,818.9B |
| Free Cash Flow | NT$1,019.8B |
| Revenue Growth | 31.9% |
| FCF margin | 26.7% |
| Gross margin | 59.9% |
| ROIC | 38.2% |
| Total Debt to Equity | 18.2% |
Investment Thesis
TSMC represents the critical infrastructure layer of the global semiconductor industry, with a $1.73 trillion market capitalization and a quality rating of 8.2/10. As the world's leading foundry, TSMC manufactures advanced chips for NVIDIA, AMD, Apple, and countless other technology leaders. The company has demonstrated 31.9% revenue growth with NT$3.82 trillion in annual revenue, driven by sustained demand for advanced process nodes. TSMC's 59.9% gross margin and 26.7% FCF margin reflect its technological leadership and pricing power in cutting-edge semiconductor manufacturing.
The company's 38.2% ROIC demonstrates exceptional capital efficiency despite massive capital expenditure requirements. TSMC's 18.2% debt-to-equity ratio remains manageable given its cash generation capabilities. Over the past 12 months, TSM shares have appreciated 58.8%, reflecting recognition of TSMC's indispensable role in the AI infrastructure ecosystem. The company's geographic diversification and long-term customer relationships provide stability amid geopolitical uncertainties.
Key Catalysts
- Continued demand for advanced process nodes (3nm, 2nm)
- AI chip manufacturing for hyperscalers and emerging AI companies
- Capacity expansion and new fab investments
- Technology leadership maintenance against competitors
Risk Factors
- Geopolitical tensions between US and China affecting Taiwan
- Cyclical nature of semiconductor industry
- Massive capital expenditure requirements
- Customer concentration risk with major tech companies
Broadcom Inc. (AVGO)
| Metric | Value |
|---|---|
| Market Cap | $1,574.3B |
| Quality Rating | 8.2 |
| Intrinsic Value | $131.5 |
| 1Y Return | 53.6% |
| Revenue | $63.9B |
| Free Cash Flow | $26.9B |
| Revenue Growth | 23.9% |
| FCF margin | 42.1% |
| Gross margin | 67.8% |
| ROIC | 18.3% |
| Total Debt to Equity | 80.1% |
Investment Thesis
Broadcom operates as a critical infrastructure provider for data centers, networking, and broadband connectivity, commanding a $1.57 trillion market cap with a quality rating of 8.2/10. The company generates $63.9 billion in annual revenue with 23.9% revenue growth, driven by strong demand for data center interconnect solutions and AI infrastructure components. Broadcom's 67.8% gross margin reflects its specialized technology offerings and market position, while its 42.1% FCF margin demonstrates exceptional cash generation relative to revenue.
The company's 18.3% ROIC and $26.9 billion in free cash flow provide substantial resources for acquisitions, R&D, and shareholder returns. However, investors should note the 80.1% debt-to-equity ratio, which reflects Broadcom's acquisition-driven growth strategy. Over the past year, AVGO shares have returned 53.6%, reflecting investor recognition of the company's critical role in AI infrastructure buildout. The company's diversified customer base across cloud providers, telecommunications companies, and enterprise customers provides revenue stability.
Key Catalysts
- AI infrastructure spending acceleration
- Data center networking and interconnect demand
- Broadband and wireless infrastructure investments
- Strategic acquisitions and integration opportunities
Risk Factors
- High leverage from acquisition strategy
- Customer concentration with major cloud providers
- Cyclical semiconductor industry dynamics
- Integration execution risks from acquisitions
Micron Technology, Inc. (MU)
| Metric | Value |
|---|---|
| Market Cap | $486.8B |
| Quality Rating | 8.2 |
| Intrinsic Value | $419.0 |
| 1Y Return | 348.5% |
| Revenue | $42.3B |
| Free Cash Flow | $17.3B |
| Revenue Growth | 45.4% |
| FCF margin | 40.9% |
| Gross margin | 45.3% |
| ROIC | 23.4% |
| Total Debt to Equity | 21.2% |
Investment Thesis
Micron represents a compelling opportunity in memory semiconductors, with a $486.8 billion market cap and a quality rating of 8.2/10. The company has delivered extraordinary performance, with 45.4% revenue growth and $42.3 billion in annual revenue, driven by strong demand for DRAM and NAND flash memory in AI data centers and consumer devices. Micron's 45.3% gross margin and 40.9% FCF margin reflect improving operational leverage as the company benefits from memory price recovery and AI-driven demand.
The company's 23.4% ROIC demonstrates improving capital efficiency, while $17.3 billion in free cash flow provides resources for capacity expansion and shareholder returns. Most remarkably, MU shares have delivered a 348.5% return over the past 12 months—among the strongest performers in the semiconductor sector—reflecting the dramatic recovery in memory chip pricing and recognition of AI's memory-intensive requirements. The 21.2% debt-to-equity ratio remains reasonable given the company's cash generation.
Key Catalysts
- AI data center memory demand acceleration
- Memory chip pricing recovery and margin expansion
- High-bandwidth memory (HBM) adoption for AI applications
- Capacity expansion to meet sustained demand
Risk Factors
- Memory chip market cyclicality and pricing volatility
- Significant capital expenditure requirements
- Competition from Samsung and SK Hynix
- Potential demand softness if AI spending moderates
ASML Holding N.V. (ASML)
| Metric | Value |
|---|---|
| Market Cap | $559.0B |
| Quality Rating | 7.8 |
| Intrinsic Value | $914.1 |
| 1Y Return | 93.4% |
| Revenue | €31.4B |
| Free Cash Flow | €10.7B |
| Revenue Growth | 11.0% |
| FCF margin | 34.1% |
| Gross margin | 53.1% |
| ROIC | 28.2% |
| Total Debt to Equity | 13.8% |
Investment Thesis
ASML occupies a unique position as the world's leading supplier of semiconductor manufacturing equipment, particularly extreme ultraviolet (EUV) lithography systems. With a $559 billion market cap and a quality rating of 7.8/10, ASML generates €31.4 billion in annual revenue with 11.0% revenue growth. The company's 53.1% gross margin and 34.1% FCF margin reflect the high-value nature of its specialized equipment offerings. ASML's 28.2% ROIC demonstrates efficient capital deployment in a capital-intensive business.
The company's €10.7 billion in free cash flow provides substantial resources for R&D and shareholder returns, while the 13.8% debt-to-equity ratio maintains financial flexibility. ASML shares have delivered an exceptional 93.4% return over the past 12 months, reflecting recognition of the company's indispensable role in enabling advanced chip manufacturing for AI and other applications. As semiconductor manufacturers invest heavily in capacity expansion, ASML benefits from sustained equipment demand.
Key Catalysts
- Continued semiconductor industry capital expenditure
- EUV technology adoption for advanced process nodes
- Next-generation lithography system development
- Geopolitical support for semiconductor manufacturing in allied nations
Risk Factors
- Geopolitical export restrictions and regulatory scrutiny
- Cyclical semiconductor equipment spending
- Long sales cycles and project delays
- Dependence on major semiconductor manufacturer customers
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Palantir Technologies Inc. (PLTR)
| Metric | Value |
|---|---|
| Market Cap | $349.5B |
| Quality Rating | 8.1 |
| Intrinsic Value | $20.3 |
| 1Y Return | 80.5% |
| Revenue | $3,896.2M |
| Free Cash Flow | $1,794.8M |
| Revenue Growth | 47.2% |
| FCF margin | 46.1% |
| Gross margin | 80.8% |
| ROIC | 76.6% |
| Total Debt to Equity | 3.5% |
Investment Thesis
Palantir represents a high-growth enterprise software company with a $349.5 billion market cap and a quality rating of 8.1/10. The company generates $3.90 billion in annual revenue with exceptional 47.2% revenue growth, driven by expanding adoption of its data integration and analytics platforms across government and commercial customers. Palantir's 80.8% gross margin reflects the software-based nature of its business model, while its 46.1% FCF margin demonstrates strong cash generation despite ongoing growth investments.
The company's 76.6% ROIC ranks among the highest in the software industry, reflecting exceptional capital efficiency. With only a 3.5% debt-to-equity ratio, Palantir maintains a fortress balance sheet while generating $1.79 billion in free cash flow. Over the past year, PLTR shares have appreciated 80.5%, reflecting investor enthusiasm for the company's AI-powered analytics capabilities and expanding commercial customer base. The company's transition from government-focused to balanced government-commercial revenue represents a significant growth opportunity.
Key Catalysts
- Commercial customer expansion and revenue acceleration
- AI-powered analytics platform adoption
- International market expansion
- Government spending on data integration and intelligence
Risk Factors
- Execution risk on commercial customer acquisition
- Dependence on government contracts for revenue base
- Competition from larger enterprise software vendors
- Valuation sensitivity to growth rate changes
Alphabet Inc. (GOOG)
| Metric | Value |
|---|---|
| Market Cap | $4,081.5B |
| Quality Rating | 7.9 |
| Intrinsic Value | $218.0 |
| 1Y Return | 67.3% |
| Revenue | $385.5B |
| Free Cash Flow | $73.6B |
| Revenue Growth | 13.5% |
| FCF margin | 19.1% |
| Gross margin | 59.2% |
| ROIC | 31.4% |
| Total Debt to Equity | 8.7% |
Investment Thesis
GOOG represents the same Alphabet Inc. business as GOOGL, offering investors an alternative share class with identical underlying economics. With a $4.08 trillion market cap and a quality rating of 7.9/10, GOOG shares provide exposure to Alphabet's diversified technology platform generating $385.5 billion in annual revenue with 13.5% growth. The company's 59.2% gross margin and 19.1% FCF margin demonstrate the profitability of its core search and advertising business, while 31.4% ROIC reflects efficient capital deployment.
The $73.6 billion in free cash flow and 8.7% debt-to-equity ratio provide substantial financial flexibility for innovation investments and shareholder returns. GOOG shares have delivered 67.3% returns over the past 12 months, reflecting the same positive sentiment as GOOGL regarding Alphabet's AI strategy and business resilience. The primary distinction between GOOG and GOOGL relates to share class structure and voting rights, with GOOG representing non-voting shares.
Key Catalysts
- AI integration across Google products and services
- Cloud infrastructure expansion and market share gains
- Search monetization improvements
- YouTube and advertising platform strength
Risk Factors
- Regulatory and antitrust scrutiny
- Search disruption from AI-native competitors
- Execution risk on AI product launches
- Advertising market cyclicality
Tesla, Inc. (TSLA)
| Metric | Value |
|---|---|
| Market Cap | $1,404.2B |
| Quality Rating | 6.5 |
| Intrinsic Value | $41.3 |
| 1Y Return | 7.5% |
| Revenue | $94.8B |
| Free Cash Flow | $6,220.0M |
| Revenue Growth | (2.9%) |
| FCF margin | 6.6% |
| Gross margin | 18.0% |
| ROIC | 5.6% |
| Total Debt to Equity | 10.1% |
Investment Thesis
Tesla represents a unique position in this portfolio as a mature automotive manufacturer with emerging energy storage and AI capabilities. With a $1.40 trillion market cap and a quality rating of 6.5/10, Tesla generates $94.8 billion in annual revenue but faces headwinds with negative 2.9% revenue growth. The company's 18.0% gross margin reflects intense competition in the electric vehicle market, while its 6.6% FCF margin and $6.22 billion in free cash flow demonstrate the capital-intensive nature of automotive manufacturing.
Tesla's 5.6% ROIC and 10.1% debt-to-equity ratio indicate a company in transition, with lower returns on capital compared to pure-technology peers. However, TSLA shares have appreciated 7.5% over the past year, reflecting investor optimism regarding the company's energy storage business, autonomous driving development, and potential AI applications. Tesla's inclusion in this portfolio reflects its significant market capitalization and ongoing transformation rather than traditional growth metrics.
Key Catalysts
- Energy storage business acceleration
- Autonomous driving technology development and deployment
- New vehicle platform launches
- International market expansion
Risk Factors
- Intense EV market competition and pricing pressure
- Execution risk on autonomous driving technology
- Regulatory changes affecting EV incentives
- Dependence on CEO leadership and vision
Alibaba Group Holding Limited (BABA)
| Metric | Value |
|---|---|
| Market Cap | $399.0B |
| Quality Rating | 6.4 |
| Intrinsic Value | $299.8 |
| 1Y Return | 65.0% |
| Revenue | CN¥1,012.1B |
| Free Cash Flow | (CN¥26.9B) |
| Revenue Growth | 5.2% |
| FCF margin | (2.7%) |
| Gross margin | 41.2% |
| ROIC | 10.5% |
| Total Debt to Equity | 25.3% |
Investment Thesis
Alibaba represents exposure to China's e-commerce and cloud computing markets, with a $399 billion market cap and a quality rating of 6.4/10. The company generates CN¥1.01 trillion in annual revenue with modest 5.2% revenue growth, reflecting maturity in core e-commerce markets and regulatory challenges in China. Alibaba's 41.2% gross margin demonstrates the profitability of its platform model, but the company faces headwinds with negative 2.7% FCF margin and (CN¥26.9 billion) in free cash flow, indicating cash consumption rather than generation.
The company's 10.5% ROIC and 25.3% debt-to-equity ratio reflect operational challenges and capital intensity. However, BABA shares have delivered 65.0% returns over the past 12 months, reflecting potential recovery sentiment and valuation reset following regulatory pressures. Alibaba's inclusion in this portfolio reflects its significant market position and potential turnaround opportunity, though it carries higher risk than other holdings due to geopolitical factors and regulatory uncertainty.
Key Catalysts
- Regulatory environment stabilization in China
- Cloud computing business acceleration
- International expansion initiatives
- E-commerce market recovery in China
Risk Factors
- Chinese regulatory and geopolitical risks
- Negative free cash flow generation
- Intense competition in e-commerce and cloud markets
- Dependence on Chinese economic growth
Portfolio Diversification Insights
This 10-stock portfolio demonstrates strong sector concentration in technology and semiconductors, reflecting the current market environment's focus on AI infrastructure and digital transformation. The portfolio divides into three primary clusters:
AI Infrastructure Leaders (NVDA, TSM, ASML, AVGO): These companies form the backbone of AI infrastructure, providing chips, manufacturing capacity, and equipment essential for AI deployment. Their combined market capitalization exceeds $8.5 trillion, representing the largest segment of this portfolio.
Platform Technology Companies (GOOGL, GOOG, PLTR): These firms leverage AI to enhance their core platforms and services, generating substantial free cash flow while investing in next-generation capabilities. Their diversified revenue streams provide stability relative to pure-play semiconductor companies.
Emerging & Cyclical Positions (MU, TSLA, BABA): These stocks represent either cyclical recovery opportunities (memory semiconductors) or transformation stories (Tesla, Alibaba) with higher risk-reward profiles.
Geographic Diversification: The portfolio includes US-domiciled companies (NVDA, GOOGL, GOOG, AVGO, PLTR, TSLA, MU), Taiwan-based TSMC, Netherlands-based ASML, and China-based Alibaba, providing exposure to multiple geopolitical regions and regulatory environments.
Quality Metrics: Eight of the ten stocks maintain quality ratings of 8.0 or higher, indicating strong fundamental characteristics. The portfolio's weighted average quality rating reflects institutional-grade analysis standards.
Market Timing & Entry Strategies
Dollar-Cost Averaging Approach: Given the portfolio's concentration in high-growth technology stocks, investors may consider implementing a dollar-cost averaging strategy over 3-6 months rather than deploying capital in a single transaction. This approach reduces timing risk and allows for position building at varying price levels.
Sector Rotation Considerations: The semiconductor and AI infrastructure sectors have experienced significant appreciation over the past 12 months. Investors should consider whether current valuations reflect sustainable growth or represent a temporary peak. ValueSense's intrinsic value tools can help assess whether current prices align with fundamental value.
Valuation-Based Entry Points: Rather than attempting to time market movements, investors may establish target entry prices based on intrinsic value calculations. For example, if a stock's intrinsic value is $100 but the current price is $120, investors might establish a buy target at $110, representing a 8% discount to intrinsic value.
Sector Strength Indicators: Monitor semiconductor industry metrics including wafer starts, equipment orders, and memory chip pricing trends. These leading indicators often precede stock price movements and can inform entry timing decisions.
Geopolitical Risk Management: Given the portfolio's exposure to Taiwan (TSMC) and China (Alibaba), investors should monitor geopolitical developments and consider position sizing accordingly. Diversification across multiple geographies helps mitigate concentration risk.
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FAQ Section
How were these stocks selected?
These 10 stocks were selected using ValueSense's fundamental analysis framework, which evaluates companies based on intrinsic value, quality metrics, growth rates, and cash flow generation. The portfolio emphasizes companies with strong ROIC, healthy gross margins, and sustainable free cash flow. Each stock underwent analysis using ValueSense's proprietary valuation toolkit, which combines multiple approaches including DCF analysis, comparable company analysis, and earnings power value calculations.
What's the best stock from this list?
Determining the "best" stock depends on individual investment objectives and risk tolerance. However, NVIDIA and ASML demonstrate the strongest combination of growth rates, profitability metrics, and market positioning. NVIDIA's 161.5% ROIC and 65.2% revenue growth reflect exceptional capital efficiency and market demand. ASML's 93.4% one-year return and critical role in semiconductor manufacturing provide compelling value. Investors should evaluate each stock against their specific investment criteria using ValueSense's analysis tools.
Should I buy all these stocks or diversify further?
While this portfolio provides exposure to the AI infrastructure and technology sectors, investors should consider their overall portfolio composition and risk tolerance. The portfolio's concentration in technology and semiconductors means it will outperform during periods of tech strength but underperform during sector rotations. Consider diversifying with holdings in healthcare, consumer staples, financials, or other sectors based on your overall asset allocation strategy. ValueSense's stock screener can help identify opportunities in underrepresented sectors.
What are the biggest risks with these picks?
The primary risks include sector concentration (technology and semiconductors), geopolitical exposure (Taiwan, China), valuation sensitivity (these stocks trade at premium valuations reflecting growth expectations), and cyclicality (semiconductor industry cycles). Additionally, regulatory risks affect Alphabet and Alibaba, while execution risks apply to Tesla's autonomous driving and Palantir's commercial expansion. Investors should monitor these risk factors and adjust positions accordingly.
When is the best time to invest in these stocks?
Rather than attempting to time market movements, ValueSense recommends a systematic approach based on valuation metrics. Use the platform's intrinsic value calculations to establish target entry prices representing meaningful discounts to calculated fair value. Dollar-cost averaging over 3-6 months reduces timing risk. Monitor earnings reports, guidance updates, and industry trends for catalysts that may affect valuations. Consider your investment timeline—longer-term investors can tolerate short-term volatility, while shorter-term investors should be more selective about entry points.