With the marketwide sell-off, plenty of red-hot growth stocks have sold off and don't have near the premium attached to them as they once did. This is excellent news for investors, as they might regain that premium when the market recovers, giving investors a nice profit.

I think Nvidia (NVDA 0.12%) and MercadoLibre (MELI 2.93%) are two red-hot growth stocks worth buying right now. Both have excellent growth prospects ahead of them, and I think now is the time to pounce.

Nvidia

Nvidia has been the biggest growth story over the past two years, but 2025 hasn't been so kind. It was caught up in the marketwide sell-off, and now sits around 27% off its all-time high.

Nvidia's jaw-dropping growth over the past few years came from its dominance in the data center GPU (graphics processing unit) market. GPUs are the tool of choice in this industry as they are incredibly useful for processing workloads that require intensive calculations, such as AI model training. GPUs can process multiple calculations in parallel, an effect that can be further amplified by connecting additional GPUs in a cluster.

Nvidia has the best products in this space and has enjoyed a dominant market share position thanks to its superiority. However, the market dramatically sold off Nvidia's stock because it believes that it won't be able to live up to the growth expectations that were previously priced in. As a result, the stock's valuation tumbled.

NVDA PE Ratio (Forward) data by YCharts

At 25 times forward earnings, it's only marginally more expensive than the broader market, which trades at 20.5 times forward earnings. This is despite massive growth estimates for this year and next, alongside a projection that data center capital expenditures will exceed $1 trillion by 2028. Considering that the current capital expenditure amount hovers around $400 billion, and Nvidia generated $115 billion over the past 12 months from its data center GPUs, it clearly gets a large chunk of this spending.

If this projection comes true, Nvidia's stock is a no-brainer buy at this price, as investors are worried about what will happen over the next few months rather than over the next five years.

MercadoLibre

MercadoLibre (MELI 2.93%) is often referred to as the Amazon of Latin America. But that's selling it short. To capture its strong fintech business, the comparison would also need to include PayPal.

Latin America isn't as far along in the e-commerce buildout as the U.S. is, so there's still a ton of growth in this space. However, MercadoLibre established market dominance and will capture the lion's share of growth in this important industry.

MercadoLibre also showed steady growth quarter after quarter.

MELI Operating Revenue (Quarterly YoY Growth) data by YCharts

Those growth rates may drop a bit in 2025 and 2026, with Wall Street analysts projecting 24% and 23% revenue growth in those years. Still, those are strong growth rates, and MercadoLibre has an excellent track record of beating analyst projections.

MercadoLibre is a great way to invest outside U.S. borders and isn't a stock caught up in U.S. tariff fears. Although the stock is near its all-time high right now, it makes for an excellent buy, and investors can be confident the stock will be worth far more a few years down the road.