5 growth stocks to watch in 2025: Analysis and market outlook

What are growth stocks?

Growth stocks are the shares of companies that are expected to grow at a pace that significantly outperforms the average market. Stock traders hope to see capital gains because the growth stocks are expected to rise in value exceptionally quickly.

Growth stocks are often found in the technology industry, holding patents or innovations that capture a large portion of the market – or when a significant amount of market share is still available.

Do growth stocks pay dividends?

While it’s not a strict rule, growth stocks usually don’t pay dividends. Instead, the companies reinvest their profits back into the business, which helps them expand at a quicker rate. Stock traders might hope for dividends in the future, though, once growth has slowed and the company has stabilised. However, this could take years to happen.

Price-to-earnings ratios: are growth stocks overpriced?

While growth stocks can often have high price-to-earnings (P/E) ratios, a deeper look reveals that they’re expected to generate high earnings in the future – or so stock traders hope. So, in reality, the shares can often be bought at a bargain compared to what their future value will be.

It’s important to remember that all stock trading carries an element of risk, and no company’s shares are a sure thing.

Advantages of growth stocks

There are numerous advantages to stock trading growth stocks. Here are a few:

• There’s great potential for high returns. If growth stocks expand as the market expects them to, big profits can be made
• Due to the nature of growth stocks, the companies behind them typically contribute positively to economic growth and technological advancement
• Growth stocks often belong to innovative companies – as you’ll see in our list below, four of our picks are tech businesses. By investing in these stocks, you’re helping to contribute to technological progression

Risks of growth stocks

Just as important as the advantages are the risks of growth stocks. Here are a few notable ones:

• Because stock traders often pay a premium for growth stocks, if the expected growth doesn’t occur, investors can lose their funds
• They don’t pay dividends as a general rule, which can be a positive or a negative, depending on how you look at it. On the one hand, you don’t realise dividend earnings on your stock, but on the other, profit is reinvested to continue to drive growth
• Stock traders face a higher risk than, say, value stocks, with growth stocks, as they’re often volatile, and there’s no guarantee that the projected profits will materialise

Top 5 growth stocks to watch in 2025

We’ve chosen these five growth stocks for a number of reasons, including:

• Current and future earnings outlooks
• Connection to the latest technology (think AI), which is growing at an astounding pace. It’s also no surprise that four of the stocks on our list are involved in the tech sector, historically known for its ability to produce growth shares
• International exposure for UAE stock traders

About the growth stocks in this article

All the stocks we mention here are available for both CFD trading and stock trading with us, except for SK hynix Inc.

All figures are accurate as of 29 December 2025.

1. Hesai Group Sponsored ADR (Nasdaq: HSAI)

Industry: Producer manufacturing

Market cap: US$3.63 billion¹

Hesai Group is a technology company focused on LiDAR sensors, a key component used in advanced driver-assistance systems (ADAS), autonomous vehicles and robotics.

LiDAR works by using laser pulses to build a detailed, three-dimensional picture of the surrounding environment, helping vehicles and machines ‘see’ more accurately than with cameras alone.

The company is based in China but operates globally, supplying its sensors to car manufacturers, robotics firms and technology companies across Asia, Europe and North America.

Over recent years, Hesai has built a strong reputation for producing high-performance sensors at scale, which has helped it win major commercial contracts and expand its customer base.

The rising adoption of driver-assistance features in everyday vehicles, not just fully autonomous cars, has helped drive the company’s growth. As safety regulations tighten and consumers expect more intelligent features in new models, LiDAR has moved from an experimental technology to something that is increasingly being built into production vehicles.

Hesai has benefited from this shift, particularly as automakers look for reliable suppliers that can deliver large volumes consistently.

Highlights:

• Beyond automotive uses, the company is also expanding into areas such as robotics, logistics automation and smart infrastructure. These applications provide additional growth avenues and reduce reliance on any single industry
• Hesai’s stock price performance this year reflects growing confidence in its business momentum and its position within the global LiDAR market

2. Western Digital Corporation (Nasdaq: WDC)

Industry: Electronic technology

Market cap: US$62.07 billion²

Western Digital is a long-established technology company best known for its role in data storage, supplying hard drives and storage solutions used by consumers, businesses and large cloud providers.

While data storage might sound unexciting at first glance, it has become a critical part of the modern digital economy.

As AI, cloud computing and streaming services continue to grow, the amount of data being created and stored is expanding rapidly. Western Digital sits right at the centre of this trend, providing the physical infrastructure that allows vast amounts of information to be saved, accessed and managed efficiently.

In recent periods, the company has benefited from renewed demand from data centres and enterprise customers, particularly those supporting AI workloads. These systems require large, reliable and cost-effective storage solutions, an area where traditional hard drives still play an important role. This has helped Western Digital return to growth after a more challenging phase for the broader tech hardware sector.

Highlights:

• The company’s stock price performance this year reflects this turnaround story. Rather than being a speculative tech name, it represents a more established growth play linked to long-term digital infrastructure trends
• As data continues to underpin almost every part of the global economy, Western Digital’s position as a key enabler of that data growth has brought it back into the spotlight

3. SK hynix Inc (KRX: 000660)

Industry: Electronic technology

Market cap: ₩413.58 trillion³

SK hynix is one of the world’s leading memory chip manufacturers, based in South Korea. Its products are used in smartphones, computers, servers and increasingly in data centres that support AI and cloud services. Memory chips may not be visible to consumers, but they are essential for modern computing.

The company specialises in DRAM and NAND memory, with a particularly strong position in high-performance memory used for AI applications. As AI models become larger and more complex, they require faster and more efficient memory to process information quickly. This has created strong demand for the types of advanced memory products SK hynix focuses on.

After a difficult period for the global memory industry, conditions have improved significantly. Demand has recovered, pricing has stabilised and customers have returned to investing in new hardware. SK hynix has been one of the main beneficiaries of this cycle, supported by years of investment in advanced manufacturing and technology development.

Highlights:

• The company supplies many of the world’s largest technology businesses, giving it a broad and diversified customer base
• Its stock price strength this year reflects both the recovery in the memory market and optimism around AI-related demand

4. Rolls-Royce Holdings (LSE: RR.)

Industry: Electronic technology

Market cap: £96.58 billion⁴

Rolls-Royce Holdings is a UK-based engineering group with operations spanning civil aerospace, defence and power systems.

Best known for manufacturing aircraft engines, the company also plays an important role in defence technology and energy infrastructure.

In recent years, Rolls-Royce has undergone a significant transformation. Management has focused on improving efficiency, strengthening the balance sheet and prioritising the most profitable areas of the business. As global air travel has recovered, demand for engine servicing and long-term maintenance contracts has increased, supporting more stable and predictable revenues.

Defence has also become a key growth area. Higher defence spending in many countries has boosted demand for military engines and power systems, providing an additional tailwind beyond commercial aviation. This diversification has helped make the company less reliant on any single market.

Highlights:

• It’s also involved in future-focused technologies, including small modular nuclear reactors and low-carbon power solutions. While these projects are longer-term in nature, they add to the company’s growth narrative
• Once viewed mainly as a recovery story, Rolls-Royce has increasingly been seen as a growth-oriented industrial business with exposure to aviation recovery, defence spending and next-generation energy solutions

5. Fresnillo PLC (LSE: FRES)

Industry: Non-energy minerals

Market cap: £23.58 billion⁵

Fresnillo is a precious metals mining company and the world’s largest primary silver producer, with additional exposure to gold. Although headquartered in Mexico, the company is listed in London and forms part of the UK’s major stock indices, giving it an international stock trader base.

Mining companies often move in cycles, influenced by commodity prices as well as operational performance. Fresnillo has benefited from a supportive environment for precious metals, with silver and gold attracting attention as stores of value during periods of economic uncertainty.

Operationally, the company focuses on improving efficiency and managing costs across its portfolio of mines. While production levels can vary from year to year, Fresnillo’s scale and long mine life provide a degree of stability compared with smaller producers.

Its ability to generate cash during favourable market conditions has supported dividends and reinvestment into existing assets.

Highlights:

• Fresnillo offers a different type of exposure compared with technology stocks. Rather than relying on innovation cycles or consumer adoption, its performance is closely linked to demand for precious metals in investment, industrial and jewellery markets
• The company’s stock price strength this year reflects rising interest in commodities and the role precious metals can play in diversified portfolios

How to trade growth stocks with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for growth stocks on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it 

Stock trading

1. Open a stock trading account with IG UAE
2. Search for growth stocks
3. Choose the stock you want to buy
4. Determine how many stocks you want to purchase
5. Place your order
6. Monitor your investment 

FAQs about growth stocks

Footnotes
 

1. TradingView, December 2025
2. TradingView, December 2025
3. TradingView, December 2025
4. TradingView, December 2025
5. TradingView, December 2025