Investors with a long-term horizon may want to consider growth stocks like Nvidia, Spotify, and ServiceNow, all of which are trading at discounts to their typical valuations. Nvidia, a leader in AI computing, is poised to benefit from a multitrillion-dollar AI investment cycle. The company expects industrywide AI infrastructure spending to reach $3 trillion to $4 trillion a year by the end of the decade. Nvidia's stock is up about 18% over the past year, with revenue doubling year over year to about $96 billion in the quarter ending July 26, 2026. Management forecasts revenue growth of about 70% next fiscal year.
Spotify is targeting 1 billion paying subscribers and margin expansion. The company's 2030 targets include mid-teens annual revenue growth and an operating margin above 20%. Spotify's stock is down about 15% over the past year due to higher spending on AI features and marketing. However, a recent deal with Universal Music mitigates risks related to AI music. The stock trades at about 42 times forward earnings estimates, below its three-year average of about 55.
ServiceNow is on track to roughly double its subscription revenue by 2030. The company's stock is down about 17% over the past year amid concerns about AI agents reducing paid employee seats. However, management notes that half of its new business comes from pricing not tied to seats. ServiceNow's stock trades at about 38 times forward earnings estimates, well below its three-year average of about 48.
All three companies are well-positioned for long-term growth, with durable competitive advantages in their respective markets. Nvidia trades at about 23 times this year's consensus earnings estimate, Spotify at 42 times, and ServiceNow at 38 times. Analysts expect earnings growth rates of 50%, 28%, and 24% annually for Nvidia, Spotify, and ServiceNow, respectively.