Growth stocks, especially the more speculative ones, haven’t been in vogue this year. In fact, it’s been a pretty terrible year for growth stocks. This was compounded by recent US inflation data and rate rises that will increase the cost of growth.
The Nasdaq, which is heavy on growth and tech stocks, saw some pretty steep declines. But, so did other indexes, including the NYSE. For me, this dip represents an opportunity to buy.
So here are some growth stocks on the US index that I’m looking to add to my portfolio.
Taiwan Semiconductor Manufacturing Co
The undisputed king of semiconductor manufacturing is trading 7% lower following the June sell-off. While listed on the NYSE, it was clearly impacted by the Nasdaq rout.
Taiwan Semiconductor Manufacturing (NYSE:TSM) is a hugely profitable growth stock and the company registered record revenue in Q1.
It has a price-to-earnings (P/E) ratio of around 19, which is cheaper than the industry average. Investors have likely factored in TSM’s risky and aggressive growth strategy.
There’s also some geopolitical risk. China has reiterated its desire to bring Taiwan back under the control of the mainland.
Despite this, TSM is the leading chip manufacturer both in terms of output and technology.
Li Auto
Li Auto (NASDAQ:LI) shares, like other Chinese EV manufacturers, have done pretty well over the past month. This is largely because of the Chinese economy appearing more open than it did at the beginning of May. But Chinese growth stocks also received a boost after an apparent government U-turn on indigenous soft tech.
However, there’s a lot of volatility. Shares in Li Auto and peer NIO have jumped up and down over the past two weeks. And this creates opportunity. I want to buy Li Auto for the long run, but I’m watching the share price for an opportunity to buy.
The firm is on an impressive growth curve. Li Auto revenue for the quarter ending 31 March was $1.5bn, an impressive 307.89% increase year-on-year.
Lockdowns could hurt production but, in the long run, I think this Chinese manufacturer will prosper.
CRISPR Therapeutics
CRISPR Therapeutics (NASDAQ:CRSP) has actually done rather well over the past month, but I still think there’ll be a good opportunity to buy amid the current volatility. Investment expert Cathie Wood has actually bought shares multiple times for her Ark Invest (NYSEMKT:ARKK) portfolio.
It’s definitely a speculative pick as governments and regulators around the world have been hesitant to back gene therapy treatments. However, the technology certainly has plenty of uses. CRISPR Therapeutics plans on submitting its candidate treatment for blood disorders for regulatory approval at the end of this year.
The gene editing treatment could be used to treat numerous diseases in the future. Scientists have been working to engineer immune cells to seek and destroy cancer cells.