AI Stocks Set for a Strong 2025: Insights into Market Leaders
The artificial intelligence surge continues to captivate investors, with numerous stocks reaping significant rewards. As we head into 2025, the momentum shows no signs of slowing, driven by increasing adoption and high demand reported in recent earnings updates.
Notable companies such as Palantir PLTR, Broadcom AVGO, and Nvidia NVDA are poised for impressive performances thanks to their AI innovations. Let’s delve deeper into each of these firms.
Broadcom Achieves Record Revenue
Broadcom has rapidly established itself as a leading AI player, and their recent quarterly results confirm this strong performance. For its fiscal year 2024, which has just concluded, the company reported a record-breaking annual revenue of $51.6 billion, marking a 44% increase from the previous year, driven by robust demand for its technologies.
A remarkable achievement was Broadcom’s semiconductor revenue, which reached $30.1 billion in FY24, propelled by outstanding sales of its AI XPUs that led to a staggering 220% growth in AI-related revenue. Below, a chart illustrates the company’s sales performance on a quarterly basis.
Image Source: Zacks Investment Research
Broadcom’s positive earnings outlook has improved following these results, earning the stock a Zacks Rank #2 (Buy). The next earnings report is due in March, with preliminary forecasts suggesting a 36% growth in earnings per share and a 22% growth in sales.
Image Source: Zacks Investment Research
Palantir’s Stock Soars Amidst AI Boom
Palantir’s stock has dramatically increased due to the ongoing AI excitement, and the latest quarterly results have delighted investors. These compelling results prompted analysts to elevate their earnings projections, placing the stock at a Zacks Rank #2 (Buy).
The company’s sales surged to $726 million in its latest reporting period, representing a 30% increase year-over-year and a 7% increase from the previous quarter. The chart below shows that PLTR has consistently achieved sequential sales growth over the years.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Nvidia Continues to Lead the AI Market
Nvidia remains a favorite among investors, consistently exceeding expectations with its Data Center results and showcasing significant year-over-year growth. Over recent months, the company has also experienced a brighter earnings outlook, reflected in the positive revisions post quarterly reports.
The Data Center’s latest results were particularly impressive, with revenue reaching $1.8 billion amid soaring market demand. This trend underscores Nvidia’s strong position in the AI space.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
CEO Jensen Huang summed up the recent quarterly results with optimism: “The age of AI is in full steam, propelling a global shift to NVIDIA computing. Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training and inference.”
Conclusion
The excitement surrounding AI shows no signs of abating, as demand is expected to remain high with increasing adoption rates. Investors eyeing 2025 should consider Palantir PLTR, Broadcom AVGO, and Nvidia NVDA for their promising earnings outlooks.
Research Chief Selects Potential “Single Best Pick to Double”
Among thousands of stocks, five Zacks experts each selected their favorite, projecting that it could rise by 100% or more in the coming months. From these, Sheraz Mian, Director of Research, has pinpointed one company that might deliver the greatest upside.
This company caters to millennial and Gen Z markets, bringing in nearly $1 billion in revenue last quarter alone. A recent dip in its stock price presents an ideal entry point. While not every pick has been successful, this stock may exceed the returns of previous successful Zacks recommendations, such as Nano-X Imaging, which surged by 129.6% within just over nine months.
Free: Discover Our Top Stock And 4 Additional Picks
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NVIDIA Corporation (NVDA): Free Stock Analysis Report
Broadcom Inc. (AVGO): Free Stock Analysis Report
Palantir Technologies Inc. (PLTR): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
