As of 2025, momentum investing has gained traction as investors focus on a select group of companies that consistently beat earnings expectations and show strong visibility into future growth. Stocks like NVIDIA Corporation (NVDA), Broadcom Inc. (AVGO), and Eli Lilly and Company (LLY) are leading the momentum trend, driven by solid financial fundamentals and long-term growth prospects, particularly in sectors like artificial intelligence, healthcare, and infrastructure.
NVIDIA projects a 42.2% increase in sales and a 52.9% growth in earnings for fiscal 2027, following a 27.3% rise in stock price over the past year. Broadcom expects a 40.5% rise in sales and a 39.5% increase in earnings, with a 40.5% stock surge. Eli Lilly forecasts a 22.4% increase in sales and a 41% growth in earnings, having risen 34.9% in the past year.
Investors are particularly drawn to companies with clear demand drivers and predictable revenue streams, indicating a strong probability of momentum continuation into 2026.
