2025 Top 5 - NVDA, PLTR, TSLA +... To Invest.
I know what you are thinking, there’s still easily 6 more weeks to go before 2024 is out.
What’s more, Q3 2024 earnings reports are still being released daily. Is there a rush ?
Personally, I like to “know” in-advance so that I could take my time to ponder before making my choice.
With that being said, US market looks like its on course to end 2024 on a high note as investors remain on the lookout for equities likely to dominate the upcoming year.
Notably, 2025 will be crucial, considering that a new administration and Senate, will be in place and the markets are likely to show susceptibility to policies by the Trump government.
This will be the first time in 5 years where the ruling government, the Senate and House of representative have a Republican majority.
It is in this context that, Pounding the Table podcast’s investment strategist, Shay Boloor has identified 5 standout stocks, he believes will continue to dominate market conversations in 2025:
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Noting that the equities would offer compelling buying opportunities in the event of a dip.
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With Boloor expects technology and artificial intelligence sectors to continue leading the market.
(1) $NVIDIA Corp(NVDA)$
Boloor anticipates Nvidia will continue its impressive run into 2025, citing its upcoming AI-focused products.
He noted that the next-generation Blackwell chips will drive investor confidence in the semiconductor giant.
Despite some initial delays, the new product is already witnessing high demand; with initial delivery “sold” out.
With a projected 47% free cash flow margin and expected revenue growth of 40% in 2025, Nvidia will likely solidify its role in advancing the AI revolution.
As of Mon, 11 Nov 2024, NVDA was trading at $145.26, reflecting a YTD return of +201.56%.
(2) $Palantir Technologies Inc.(PLTR)$
The AI software giant Palantir has recorded significant gains due to its ability to meet enterprise and government clients’ AI needs.
Looking ahead to 2025, Boloor noted that Palantir’s Artificial Intelligence Platform (AIP) and Foundry are becoming increasingly indispensable for companies integrating AI into their operations.
With an estimated free cash flow (FCF) margin of 34% and revenue growth of 24% in 2025, Palantir is expected to attract even more interest.
These fundamentals, alongside strong earnings reports, have propelled PLTR to new all-time highs despite lingering concerns about its valuation.
As of Mon, 11 Nov 2024 closing, PLTR was trading at $60.24, gaining +263.33% in 2024. Intraday, it hit its 52-week high of $62.08.
(3) $Tesla Motors(TSLA)$
The EV maker is thriving after reaching a market cap of $1 trillion, a rally primarily driven by CEO Elon Musk’s close ties with Trump.
Boloor highlighted Tesla’s innovations in (a) Full Self-Driving (FSD) technology, (b) Megapack energy storage solutions, and (c) the Optimus humanoid robot, highlighting the company’s ambitions to reshape multiple industries.
Tesla’s 2025 outlook includes projected revenue growth of 17% and a free cash flow margin of 6%.
For Boloor, Tesla represents the future of multifaceted technology, extending well beyond automotive manufacturing.
As of Mon, 11 Nov 2024 endday, TSLA closed at $350, up almost +40.89% YTD. This is the first time for a long time since Tesla hit above $300, its 25 August 2022 3-for-1 forward stock split price.
(4) $Amazon.com(AMZN)$
Amazon continues to dominate cloud computing and e-commerce.
With projected revenue growth of +11% in 2025 and a 9% free cash flow margin, Amazon is expected to expand its reach further.
Boloor pointed to Amazon’s advancements in robotics, particularly the Kiva robots used in fulfillment centers, as key drivers of e-commerce efficiency and margin expansion.
Therefore, the company presents a long-term investment opportunity due to its cloud computing and operational innovation leadership.
As of Mon, 11 Nov 2024, AMZN was trading at $206.84, reflecting gains of 38% in 2024.
(5) $Axon Enterprise, Inc.(AXON)$
This is a “new” stock to me and I am happy to learn of it, skimming the surface for now.
Through various initiatives, Axon seeks to impact the public safety industry with products like Axon Cloud and the Axon Body 4 camera.
Notably, Axon has established a niche in public safety tech solutions, holding a near-monopoly.
The company forecasts a free cash flow margin of 19% and revenue growth of 22% in 2025, which hints at growth potential.
Boloor described Axon as a “cloud powerhouse” whose critical role in public safety will likely attract investor interest.
At the close of markets on Mon, 11 Nov 2024, AXON was valued at $616.14, surging +144.86% in 2024.
My viewpoints: (mine only)
In all honesty, I was not too impress with the Top 5 picks. Here’s why.
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The 5 stocks are a bit of a “no brainer”, considering that they are in top form at the moment, heading into end 2024.
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For Nvidia, I am still waiting for its Q3 2024 earnings (slated for 20 Nov 2024 evening) to have a better guage where this AI chipmaker stands in the grand AI-scheme of things.
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In 2025, will there be new entrants (possibly Cerebras ?) to give Nvidia a run for its money in the AI sphere ?
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For Palantir, my only question is “take profit” now ? Afterall CEO Alex Karp has already done so.
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Tesla’s rally is due to its CEO’s close relationship with returning president. It has nothing to do with the company’s “asset” of autonomous driving nor underlying value when matched against Chinese EV makers like BYD and Geely.
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One only need to look at Tesla’s latest performance to know it is an abnormally. (see below)
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For Amazon, while it continues to retain its #1 Cloud service provider ranking, both Microsoft and Google are chipping away in the cloud pie, quarter by quarter.
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Does Amazon have more tricks up its sleeves to starve off competition or minimally keep it at bay ?
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As I am new to Axon, I have no comments at the moment. At $600 a pop, I will take time to study and decide if this “Aerospace & Defense” industry stock is my cup of tea.
Technology sector and broader AI market have rallied and raised concerns about a potential future downturn. So invest with eyes wide opened ya.
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Do you think these are the best Top 5 stocks that will continue to perform in 2025 ?
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Do you think US market is rising due to Trump's impending return to power ? By the same token, will market falls when the new government starts running the country (to the grounds) Ha.
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