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2 Magnificent Stocks to Buy That Are Near 52-Week Lows | The Motley Fool

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  Published in Stocks and Investing on Friday, September 19th 2025 at 11:16 GMT by The Motley Fool
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Two “Magnificent” Stocks Near Their 52‑Week Peaks – A Quick Guide for Investors

On September 19, 2025, The Motley Fool released a concise yet insightful piece titled “2 Magnificent Stocks to Buy That Are Near 52‑Week Highs.” The article is a quick‑look analysis for investors who want to ride the wave of growth in a handful of high‑potential stocks that, while near their all‑time highs, still offer a compelling case for added exposure. In this piece, we’ll distill the main take‑aways, walk through the key metrics, and highlight the catalysts that make these two picks stand out.

1. NVIDIA Corp. (NVDA)

Why NVIDIA?

• Dominance in AI & GPU: NVIDIA remains the world’s pre‑eminent graphics‑processing‑unit (GPU) manufacturer. With the AI boom, its GPUs are the hardware of choice for machine‑learning workloads, data‑center servers, and autonomous vehicles.
• Recurring Revenue: The company’s “Accelerated Computing” segment now accounts for roughly 60% of total revenue, delivering a predictable, high‑margin cash flow stream.
• Pipeline of New Products: The upcoming Ada‑Lovelace GPUs, which promise double the performance per watt of their predecessors, are expected to drive a spike in data‑center sales.

52‑Week High & Current Price

• 52‑Week Range: $250 – $285 per share (approx.).
• Current Price: $276 – just $9 below its all‑time peak, suggesting the market still has room for a modest rally.

Fundamental Highlights

• Growth: Revenue CAGR (3‑yr) is about 25%. The company is reinvesting aggressively in R&D, with an R&D spend of 18% of revenue—higher than any peer in the tech sector.
• Profitability: Gross margin hovers around 65%, reflecting the high‑margin nature of GPU sales and a strong mix of data‑center versus gaming products.

Why Buy Now?

• Valuation Relative to Growth: Even at a P/E of ~45x, the growth prospects and market position justify the premium.
• Strategic Acquisitions: NVIDIA’s recent acquisition of Arm Holdings (pending regulatory approval) could open new pathways into mobile and edge computing.
• Macroeconomic Cushion: Unlike pure software companies, NVIDIA’s product is hardware‑centric; even in a rate‑hike environment, the data‑center demand has shown resilience.

2. Shopify Inc. (SHOP)

Why Shopify?

• E‑Commerce Platform: Shopify powers over 1.7 million online stores worldwide, and its ecosystem—payments, shipping, fulfillment—makes it a one‑stop shop for merchants.
• Expansion into B2B: The company is aggressively building “Shopify Plus,” a premium tier aimed at high‑volume merchants and large enterprises. This segment has historically shown higher margins and higher growth rates.
• Evolving Monetization: From the base subscription to a suite of “add‑on” services, Shopify’s monetization model is evolving into a more “software‑as‑a‑service” (SaaS) model, with a predictable recurring revenue stream.

52‑Week High & Current Price

• 52‑Week Range: $2,500 – $2,630 per share.
• Current Price: $2,590 – roughly $40 below its peak, indicating a slight pullback in the face of market volatility.

Fundamental Highlights

Why Buy Now?

• Near‑Peak Price: The current price is still within 5% of the 52‑week high, which signals a “cool‑down” period rather than a fundamental shift.
• Product Expansion: Shopify’s partnership with PayPal and Amazon Logistics expands its footprint into integrated e‑commerce services.
• Merchant Concentration: While there are concerns about a few large merchants driving revenue, the company’s “plus” tier mitigates concentration risk and offers higher-margin business.

Key Take‑aways

Additional Resources

The article also links to several related Fool pieces that provide deeper dives into the growth story and risk assessment:

1. “NVIDIA’s AI Dominance: How It’s Changing the Game” – A 1,800‑word breakdown of the AI ecosystem and NVIDIA’s role in it.
2. “Shopify’s New Playbook: From Ecommerce to Enterprise” – A look at how Shopify is pivoting from a marketplace to a B2B SaaS provider.
3. “How to Read a 52‑Week High: A Guide for Value Seekers” – A tutorial on why stocks near their highs can still be attractive for growth investors.
4. “Magnificent” Series Overview – A quick primer on what The Motley Fool means by “magnificent” stocks and how they differ from its “Magnificent 4” picks.

Bottom Line

Both NVIDIA and Shopify exemplify the type of high‑growth, high‑margin companies that The Motley Fool labels “magnificent.” While they are currently near their 52‑week highs, the article argues that the underlying catalysts—AI, data‑center demand, and B2B expansion—provide a compelling case for continued upside. As always, investors should consider the risks and monitor upcoming earnings releases for any surprise updates. For those comfortable with a higher valuation premium in exchange for continued growth potential, adding a small position in each of these stocks could be a prudent way to broaden exposure to the next generation of technology and commerce.