Growth stocks have experienced varying degrees of tailwinds from the ongoing bull market. While some stocks have continued to fall, others have experienced a healthy bump as strong business performance and positive investor sentiment have propelled shares upward.
Now, just because a stock is trading up or down isn't a reason alone to buy or sell it. However, some top stocks have benefited from a renewed investor interest for good reason, and could make compelling additions to your own personal portfolio. Here are two names to consider for your list of top growth stocks to buy.
1. Intuitive Surgical
Intuitive Surgical(NASDAQ: ISRG) has seen shares pop by close to 45% since the start of 2024. The company is nothing short of a behemoth in the global surgical robotics market, with 2.2 million procedures performed using its flagship da Vinci systems in 2023 alone. Since the first version of its da Vinci surgical suite was approved over two decades ago, this and subsequent generations of the robotic system have been used in over 15.4 million procedures around the world.
In the first six months of 2024, Intuitive brought in profits of $1.1 billion on revenue of $3.9 billion, up 37% and 13%, respectively, from the same time frame in 2023. That revenue figure is derived from three distinct sources.
The first and largest source of revenue for Intuitive Surgical is from instruments and accessories it sells that go with its surgical systems. The second largest revenue driver for the business is revenue from system sales, while the third is from services it offers to clients (e.g., hospitals and other medical providers), such as system maintenance and support.
The lion's share of Intuitive Surgical's revenue is recurring revenue. In fact, 83% of the company's revenue in 2023 was from recurring sources. These aren't just from selling replacement instruments and accessories, but also from service contracts that bring in $100,000 to $225,000 per year per system, and fixed payment or usage-based operating leases.
Broken down by source, in the first half of 2024, instruments and accessories revenue totaled $2.4 billion, systems revenue totaled $866.4 million, and services revenue totaled $630.8 million. Those figures were up 17%, 6%, and 11%, compared to the first half of 2023.
There's a broad and growing addressable market that Intuitive Surgical can benefit from in the years ahead despite its already extensive market presence. According to some estimates, the global surgical robotics market is on track to reach a valuation of more than $20 billion by 2030. That amounts to a compound annual growth rate (CAGR) of approximately 17% from its 2021 valuation.
Despite its run up, some analysts think the stock could have a 12-month upside of around 23% on the high end. Investors who want to benefit from a long-term growth story and a profitable company can still find plenty to like about this stock when looking at a three- to five-year or longer investment window.
2. Dell Technologies
Dell Technologies(NYSE: DELL) is up about 60% from the beginning of the year to now. The tech company is known for its variety of hardware as well as software offerings. It is one of the leading developers and manufacturers of computers and computer-related products. Dell's business also features a variety of solutions that support various artificial intelligence use cases, as well as machine learning, data analytics, and storage solutions that run on private as well as public clouds.
Dell's portfolio of servers also includes AI-optimized servers that support everything from high performance computing to generative AI. The company is also known for its hardware offerings, including desktops, workstations, notebooks, keyboards, and related services.
One perhaps lesser-known source of revenue for Dell is the financial services that it offers, which mainly involve financing options for its customers including originating and servicing loans. In the company's fiscal 2024, Dell funded $8.4 billion of loan originations while maintaining a $10.5 billion global portfolio of financing receivables.
As an investor assessing Dell for your portfolio, it's important to understand that the company divides its operations into two segments: the infrastructure solutions group and the client solutions group. The former segment includes revenue from sources such as storage solutions, general purpose and AI-optimized servers, network infrastructure, and data centers. The client solutions group includes revenue from hardware sales and services like support or extended warranties.
In the most recent financial report, which was for the second quarter of Dell's fiscal 2025, total revenue rose 9% year over year to $25 billion. That figure was propelled by record revenue in the infrastructure solutions group segment, up 38% from the prior-year period and totaling $11.6 billion. Servers and networking revenue captured $7.7 billion of that total, up an eye-popping 80% from the year-ago period. This notably offset the fact that client solutions group revenue was down slightly year over year, coming in at $12.4 billion.
The company is experiencing significant momentum from demand for its AI servers, with demand rising 23% quarter over quarter to $3.2 billion. Year to date, Dell is reporting AI server demand of $5.8 billion while its backlog was $3.8 billion at last count.
Another cherry on top for investors its Dell's dividend. The company returned $1 billion to shareholders through dividends and share repurchases in its Q2 2025. The company has paid a dividend for over a decade, and currently yields 1.5% based on today's share prices. That is in line with what the average stock trading on the S&P 500 pays. Its payout has risen more than 30% in the last five years, with its forward annual dividend rate coming in at $1.78 per share.
Investors who want to capitalize on the AI boom while investing in a household name and mainstay business can find a lot to like about Dell.
Should you invest $1,000 in Intuitive Surgical right now?
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Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool has a disclosure policy.
