Top Stocks on the Rise: NVIDIA, Amazon, and Meta Platforms Lead the Upgrades
The year 2024 has seen substantial upgrades for three major companies: NVIDIA (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), and Meta Platforms (NASDAQ: META). Each of these stocks received over 120 positive changes, including boosts in price targets, leading to significant gains in their markets. Investors are eager to understand whether this growth will continue into 2025, and the outlook appears positive. The main question now is just how high these stocks could climb.
NVIDIA: A Leader in Stock Revisions
NVIDIA stands out as the top upgraded stock in 2024 with an impressive total of 150 positive revisions. This includes notable increases in price targets that have notably raised its consensus target. According to MarketBeat, the adjusted consensus stands at $164, which reflects a more than twofold increase in consensus compared to the end of the previous year, suggesting a 25% potential upside from current levels. Given the current trend, it’s realistic to expect the stock could reach the upper range near $200, adding another 28% upside, totaling a potential gain of over 50% by 2025.
While NVIDIA’s growth is expected to decelerate in 2025, the projections still show high double-digit growth rates above 50%. Revenue should remain robust through 2026 and possibly beyond, particularly with the anticipated launch of the Blackwell GPUs designed for AI, expected in early 2026. Consequently, investors can anticipate updates throughout the year that will likely bolster positive market sentiment.
A strong reason to consider NVIDIA stock is its robust balance sheet. The surge in GPU demand is generating impressive margins and cash flow for the company, which allows it to build cash reserves while investing in infrastructure and research. At the end of FQ3, NVIDIA reported $38.5 billion in cash, nearly a 50% increase year-over-year, more than enough to cover the total liabilities. The remaining assets exceed $8 billion, placing the company in a notably strong financial position for improved returns in the future.
Amazon: Solid Growth Potential Ahead
Amazon secures its spot as the second most upgraded stock this year, having attained 123 positive revisions. Analysts consider it a Moderate Buy, supported by growing sentiment and price targets that indicate another 25% upside compared to mid-December levels. Key drivers for Amazon’s stock price rise include ongoing strength from both its consumer and AWS segments, with AWS expected to continue its impressive 20% growth through 2025, solidifying its position in the cloud services market.
Additional growth factors include consumer trends, economic resilience, and legislative impacts from the new administration. Despite visible risks, the U.S. economy is robust in 2024, growing faster than expected. This trend supports a solid labor market and consumer confidence, all likely to continue or strengthen into 2025 with the upcoming policy changes.
Meta Platforms: Transitioning to a Tech Titan
Meta Platforms has shown significant improvement this year, evolving into a more dependable company capable of maintaining market leadership while returning value to shareholders. This transformation began in 2023, focusing on efficiency, and continued to pick up momentum as improvements in artificial intelligence led to better user engagement, revenue generation, and operating margins.
Currently, Meta stands as a growth stock, distributing less than 10% of its earnings back to investors, and is poised for sustainable annual increases that likely surpass GDP and inflation. In 2024, analysts provided 120 positive revisions, elevating the price target nearly 100%. While the stock is currently fairly valued around $625, continued upward momentum may push it toward the $700 to $800 range in 2025.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
