The Nasdaq Composite index endured a torrid time in the first quarter of this year, shedding just over 7% of its value, with its momentum driven by factors such as the Middle East conflict, higher oil prices, mixed economic data, and the rising odds that the U.S. will soon enter a recession.
However, the tech-heavy index has made an impressive comeback so far in April, erasing those declines. Its recent rally can be attributed to the willingness of the U.S. and Iran to engage in talks to resolve the Middle East crisis. At the same time, technology companies continue to perform well financially, primarily driven by robust demand for artificial intelligence (AI) hardware and software.
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It won’t be surprising to see the Nasdaq sustain its newfound momentum and go on a bull run for the rest of the year. After all, according to Morningstar, the U.S. stock market is trading at a 12% discount to the firm’s fair value estimates, and it’s showing signs of stepping on the gas whenever there’s good news out of the Middle East.
That’s why this would be a good time to invest in some growth stocks that can step on the gas. If you have $1,000 in investible cash after meeting your expenses, paying off high-interest debt, and building a solid enough emergency fund, you may want to consider buying shares of Palo Alto Networks(NASDAQ: PANW) and Sandisk(NASDAQ: SNDK).
Let’s see why these stocks could make you richer by the end of the year.
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McKinsey estimates that the cybersecurity market, now worth $220 billion, could grow at an annualized rate of 13% in the medium term. The consulting firm notes that the integration of AI elements will fuel that next wave of growth.
For instance, AI agents are expected to replace or augment the roles of many human cybersecurity analysts. In addition, enterprises’ delegation of tasks to AI agents will increase cybersecurity risks, as companies will need to ensure that bad actors don’t manipulate their AI operatives. Palo Alto Networks is well positioned to capitalize on the growth of the AI-focused cybersecurity market.
The company’s Prisma AIRS platform helps customers to secure their agentic AI applications from end to end. It identifies each AI agent in an enterprise’s ecosystem and uses real-time monitoring to ensure that they don’t undertake unauthorized actions. McKinsey notes that the adoption of agentic AI solutions is expected to more than double in the coming year, which helps explain why Palo Alto’s Prisma AIRS platform is gaining solid traction among customers.
Palo Alto says that Prisma AIRS is one of the fastest-growing products in its history. The platform saw a threefold increase in customer count from its fiscal Q1 to its fiscal Q2 (which ended Jan. 31), and it could move the needle in a bigger way for the company in the long run, given the potential growth of agentic AI. Importantly, Palo Alto’s revenue pipeline is getting better because of its AI-focused offerings.
Its remaining performance obligation (RPO) — the total value of a company’s unfulfilled contracts — increased by 23% year over year in fiscal Q2 to $16 billion. That exceeded the 15% growth in its revenue to $2.6 billion. Palo Alto anticipates a 28% increase in RPO in the current fiscal year to $20.3 billion, suggesting its growth rate should improve.
So buying this cybersecurity stock following its recent pullback could be a smart move, as potential acceleration in growth, along with a bull run in Nasdaq stocks, could supercharge Palo Alto.
Sandisk has defied the Nasdaq’s volatility in 2026 and soared by 275% as of this writing. That stunning surge has been fueled by strong earnings growth. The good news for investors is that they can still buy Sandisk at just 18.6 times forward earnings, even after its multibagger performance this year.
Doing so could be a smart move, as Sandisk’s earnings are on track to expand exponentially from where they stood in its fiscal 2025 (which ended in June). That year, it booked adjusted earnings of $2.99 per share.
Sandisk manufactures NAND flash-based data storage products such as solid-state drives (SSDs) and storage cards. Its memory products go into devices such as personal computers, smartphones, gaming consoles, and data center servers. But it’s the data centers that have been scooping up a major share of the market’s available SSD as hyperscalers build out the infrastructure to handle AI workloads.
A shortage of traditional hard-disk drives has led data center operators to turn toward SSDs, and this trend is likely to continue at least until the end of next year, as all the hard-disk drives that manufacturers expect to be able to produce this year have been sold in advance. This explains why market research firm Gartner is forecasting a massive 234% increase in NAND flash prices this year. The firm adds that “meaningful pricing relief is not expected until late 2027.”
So Sandisk’s red-hot growth is likely to continue until the end of next year. As this tech stock is trading at an attractive valuation, it has the potential to jump impressively. If Sandisk’s earnings reach $105.33 per share, in line with consensus expectations, and it trades at 18 times earnings after a year, in line with its forward earnings multiple, the stock could jump to $1,896. That’s 112% higher than current levels.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool recommends Gartner and Palo Alto Networks. The Motley Fool has a disclosure policy.
