Growth stocks are companies whose sales and earnings are expected to grow faster than the market average, and investors buy them for their future potential rather than current stability. These companies typically reinvest most of their profits back into the business instead of paying dividends, aiming to fund expansion and new product development. Three stocks in focus this week are: Applied Digital (APLD), Rambus (RMBS), and Riot Platforms (RIOT).

One way to spot growth stocks is to look for strong revenue or earnings trends. Today, we focused on companies with a five‑year revenue CAGR above 15% and "Strong Buy" ratings from Wall Street analysts. Another key point is that TipRanks AI Analyst, based on the OpenAI 5.2 Model, sees revenue growth for these stocks well above their sector averages.

Here are this week's stocks:

Applied Digital (APLD) – This company builds and operates data centers and high-performance computing infrastructure to support AI, cloud computing, and blockchain workloads. APLD stock's average price target of $75.08 implies a 160.25% upside potential from the current level. The company's revenue has grown at a five-year CAGR of 134.9%.

Importantly, TipRanks AI Analyst expects Applied Digital's revenue to grow by 167.37%, compared with the Technology sector's average of 8.5%. The company's revenue growth is expected to be fueled by expanding AI data center hosting demand and a sharp jump in utilization across its sites.

Rambus (RMBS) – This semiconductor technology company develops high-performance memory, interface, and security solutions for data-intensive computing applications. RMBS stock's average price target of $158.40 implies an upside potential of 76.27%. Its revenue increased at a CAGR of 16.6% over the past five years.

According to TipRanks AI Analyst, RMBS' revenue is expected to grow by 17.17% in comparison to the Technology sector's average of 8.5%. Rambus' revenue growth is aided by strong demand for its memory interface chips and security IP as AI data center builds keep rising.

Riot Platforms (RIOT) – This U.S.-based Bitcoin mining and digital infrastructure company is focused on large-scale mining operations and expanding its data center capabilities. RIOT stock's average price target of $33.86 implies an upside potential of 58.95%. The company's revenue has grown at a five-year CAGR of 24.87%.

The company's revenue is expected to rise by 24.51%, according to TipRanks AI Analyst. This compares favorably with the Financial sector's average of 9.73%. Riot Platforms' revenue growth was driven by strong infrastructure expansion at its Rockdale facility, strategic acquisitions, and a recent shift into AI data center operations.