The Nasdaq just tanked. Here are 3 US growth stocks to consider for an ISA now

These Nasdaq stocks have a lot of potential in the long run and Edward Sheldon believes they could be worth considering for an ISA today.

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The growth-focused Nasdaq Composite index – which is home to big companies like Apple, Microsoft, and Nvidia – just had its worst day since 2022, falling 3.6% on Wednesday (24 July). It’s now down about 7% in just a few weeks. Looking for long-term ISA investments amid this sharp sell-off? Here are three top US-listed growth stocks to consider buying now.

Historically-low valuation

First up we have ‘Magnificent Seven’ company Amazon (NASDAQ:AMZN). It’s a global leader in the online shopping and cloud computing industries (both of which are expected to grow substantially in the years ahead).

Amazon stock was trading at $200 a few weeks ago. Today however, it can be snapped up for $180 – 10% lower.

I’m very bullish on the stock at the current price. Right now, the forward-looking P/E ratio using next year’s earnings per share forecast is only about 30. That’s a historically-low valuation for this company. And given that earnings are forecast to rise 57% this year and 27% next year, I think it’s a steal.

Of course, that valuation is still relatively high. So, if there’s a slowdown in Amazon’s e-commerce or cloud computing businesses in the near term, the stock could be volatile.

Taking a long-term view though, I expect the stock to move higher. Currently, it’s my largest holding.

Taking on Nvidia

Next, we have Advanced Micro Devices (NASDAQ: AMD) or ‘AMD’ for short. It’s a leading chip company (and a major rival to Nvidia).

Back in March, this stock was trading near $210. Now however, it can be picked up for $145 – about 30% cheaper.

I’ve been contemplating buying AMD shares for a while now. And I’m very tempted to pull the trigger at current prices. The reason I’m bullish is that the company has been developing high-powered artificial intelligence (AI) chips designed to compete with Nvidia’s AI products. I expect these chips to propel its revenues higher in the years ahead as the AI revolution gathers steam.

Of course, AMD is going to have its work cut out competing with Nvidia. Today, its rival is the clear leader in the AI chip market.

I reckon there’s room for multiple players in this industry, however. And with the stock trading on a forward-looking P/E ratio of 26 using the 2025 earnings forecast, I like the risk/reward setup.

Benefitting from the travel boom

Finally, check out Airbnb (NASDAQ: ABNB). It operates the world’s largest home rental platform.

Airbnb shares were trading near $170 in March. Currently however, they’re sitting at $144 – about 15% lower.

This stock has a huge amount of potential, in my view. I expect the travel industry to experience a boom over the next decade as cashed up Baby Boomers retire, and I reckon this company will benefit.

Of course, the big risk here is government regulation. Recently, Barcelona announced a ban on short-term rentals from late 2028. We could see similar regulation from other major cities in the future.

The world is a big place though. And I see scope for plenty of further platform growth here.

The forward-looking P/E ratio is about 28 currently, which I believe is very reasonable.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Ed Sheldon has positions in Airbnb, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool UK has recommended Advanced Micro Devices, Airbnb, Amazon, Apple, Microsoft, and Nvidia. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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