Growth stocks have the potential to expand their financials at a pace well above the industry average, offering investors the opportunity for outsized returns. Given this strong growth potential, these companies often trade at a premium valuation. However, their evolving business models and relatively expensive valuations can add volatility, making them better suited for investors with a higher risk tolerance.
Against this backdrop, let’s explore two high-growth stocks you could consider buying with $500 to generate superior long-term returns.
Source: Taiwan Semiconductor
5N Plus
Given its exposure to high-growth end markets such as semiconductors, terrestrial renewable energy, and space-based solar power, I have selected 5N Plus (TSX: VNP) as my first pick. The semiconductor industry has been experiencing robust growth amid the artificial intelligence (AI) boom, expanding the company’s addressable market and strengthening demand for its specialty materials.
Moreover, the company recently secured a US$18.1 million grant from the U.S. government to enhance its germanium recycling and refining capabilities at its St. George, Utah, facility. This funding should support its efforts to recover germanium from industrial residues and mining by-products, helping reinforce critical supply chains for optics and solar germanium crystals.
In addition, 5N Plus has announced plans to expand the solar cell production capacity of its subsidiary, AZUR SPACE Solar Power GmbH, by 25%. Supported by its global sourcing network, established manufacturing footprint, and ongoing product development initiatives, the company appears well-positioned to capitalize on favourable industry trends. Given favourable industry dynamics and its ongoing expansion initiatives, I expect the positive momentum in 5N Plus’s financial performance to continue.
Amid strong buying interest over the past few months, 5N Plus now trades at a next-12-month price-to-sales multiple of 4.1 and a price-to-earnings multiple of 31.7, reflecting a richer valuation. However, considering its solid growth prospects and expanding presence in high-demand end markets, I believe investors with a long-term investment horizon of more than three years could consider accumulating the stock at current levels to generate superior returns.
Celestica
Another growth stock I’m bullish on is Celestica (TSX: CLS), which delivered an impressive fourth-quarter performance last month and raised its 2026 outlook. In the fourth quarter, revenue surged 44% year over year to $3.7 billion, driven by a 64% increase in its Connectivity & Cloud Solutions (CCS) segment to $2.9 billion. Within CCS, the Hardware Platform Solutions (HPS) business generated $1.4 billion in revenue, reflecting strong 72% year-over-year growth and highlighting accelerating demand from cloud and hyperscale customers. However, revenue from the Advanced Technology Solutions (ATS) segment declined 1% to $0.8 billion, partially offsetting the overall growth.
Alongside robust top-line expansion, Celestica’s adjusted operating margin improved from 6.8% to 7.7%, supporting strong bottom-line growth. Adjusted earnings per share (EPS) came in at $1.89 for the quarter, representing a 70.3% increase from the prior-year period.
Buoyed by its solid 2025 performance and improving momentum heading into 2026, management raised its full-year 2026 guidance. The company now expects revenue of $17 billion, implying 37.2% year-over-year growth. Additionally, projected adjusted EPS of $8.75 reflects a 44.6% annual increase.
Looking ahead, rising investments in AI-ready data centres to support growing artificial intelligence adoption create significant long-term opportunities for Celestica. The company also focuses on launching innovative products to address evolving customer needs and expand its market share. Considering the favourable industry backdrop, margin expansion, and strong growth initiatives, I expect Celestica’s financial momentum to continue, potentially delivering outsized returns over the long term.
