Looking ahead if the financial goals for 2025 is refining growth stock portfolio is the key then one should be focusing on companies with established growth records and strong future outlooks. Top stocks for 2025 are from the companies that have proven growth track records and strong outlooks.
Also, investing in AI stock is also a wise decision with it being the major driver of market recovery last year, and with more potential ahead. The Nasdaq Composite has been on an upward trajectory for over two years, fueled by AI advancements, a U.S. Presidential election, declining inflation, and the start of long-awaited interest rate cuts. Best growth stocks are equity shares likely to outperform their peers and the broader market.
Top stocks investment 2025
While choosing a company one should also look at the long-term growth the stocks can provide. Let’s look at the best growth stock to invest for 2025.
Nvidia
There is still room for Nvidia to soar even though it has risen by more than 160% this year, This top stock for 2025 is ramping production of its Blackwell architecture, and demand is “staggering,” the company has said.
Nvidia is expected to get billions of dollars from Blackwell in revenue in its first quarter of commercialization, with a gross margin of more than 70%. Nvidia’s commitment to innovation should keep it ahead of rivals, making the stock looked reasonably priced today at 43x forward earnings estimates.
Pfizer
Even though Pfizer shares have struggled after its coronavirus products saw steep declines in demand, it has shifted focus on 19 new products and its growing oncology business. The company aims to launch eight or more blockbuster oncology medicines by 2030, and it wants to double the number of patients taking its oncology drugs.
Eli Lilly
The drugmaker, Eli Lilly has business momentum, due to Mounjaro and Zepbound. Lilly is addressing the shortage of weight loss drugs by investing billions in production capacity. The company has also completed clinical trials showing its Zepbound treatment is more effective for weight loss than Wegovy. Since 2020, Lilly EPS has varied from $5.80 to $6.90. Analysts expect 2024 and 2025 EPS of $13.32 and $22.24, respectively.
Palantir
With more than 20 years of AI experience under its belt, Palantir Technologies was prepared when generative AI went viral. The fruit of its labor is its Artificial Intelligence Platform (AIP), which hit the ground running. The company’s U.S. commercial segment grew 54% year over year and 13% sequentially, fueling a 73% increase in its remaining deal value. Given the magnitude of the opportunity, Palantir remains reasonably priced, with a forward price/earnings-to-growth (PEG) ratio of 0.65, when any number less than 1 suggests an undervalued stock.
Microsoft
Microsoft gets at least partial credit for sparking the AI revolution. Its investment in ChatGPT creator OpenAI and its subsequent integration shined a spotlight on generative AI — and the race was on.
The stock is selling for 33 times forward earnings, which is a slight premium, compared to the price-to-earnings (P/E) ratio of 31 for the S&P 500. That’s a reasonable price, given Microsoft’s growth potential.
ServiceNow
ServiceNow offers a workflow automation platform for enterprise technology management. The platform is sold on a subscription basis to Fortune 500 companies and others. In the Q3 of 2024, ServiceNow had subscription growth of 22.5% beating the high end of the company’s guidance. The company’s investments in efficiency-enhancing generative AI features are also paying off. Analysts expect ServiceNow to produce 2024 and 2025 EPS of $14.06 and $16.87, respectively. The company delivered $8.42 in EPS in 2023 and $1.60 in 2022.
Broadcom
Broadcom supplies a wide variety of chips and accessories that are critical components in data center infrastructure and the overall internet ecosystem. That put the company in the hot seat when AI caught on, as most AI processing takes place in data centers. Despite its accelerating growth, Broadcom is attractively priced, with a PEG ratio of 0.09, when any number less than 1 suggests an undervalued stock.
Arm Holdings
Though Arm Holdings is not as popular as other stocks its contribution is important. The company licenses the blueprints for the “cores” that make up a broad cross section of CPUs and GPUs that are fundamental to AI processing.
Nvidia’s GH200 Grace Hopper Superchip uses 144 Arm version 9 (V9) CPU cores. The V9 provides greater computing power at twice the royalty rate of its predecessor.
Estimates suggest Nvidia will sell roughly 4 million GPUs in 2025 and that’s just one of Arm’s many customers. This helps illustrate the magnitude of the opportunity. Arm is also reasonably priced, with a PEG ratio of 0.87.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (TSMC), is the “world’s largest and best semiconductor foundry with customers like Nvidia, Arm, and Broadcom. Company expects revenue from AI processors to triple this year, accounting for roughly 15% of revenue. At just 28x next year’s earnings, TSMC stock is attractively priced.
Vistra
This stock has soared over 270% in 2024 for the second-best performance in the S&P 500, crushing Nvidia. Vistra has shined as investors clamor for its exposure to growth across nuclear energy and infrastructure spending needed to fuel the rapid built out of AI data centers.
Vistra is the largest competitive power generator in the U.S. The company owns the second-largest competitive nuclear fleet and the second-largest energy storage capacity in the country. The company also pays a dividend. Vistra’s 2024 run is part of a 610% climb in the last three years, leaving its sector’s 3% and the S&P 500’s 30% run in the dust.
Tesla
Tesla stock has been on a roll in recent months. The end of rebates and tax incentives for electric-vehicle (EV) customers would benefit Tesla as the industry leader.
Wedbush analyst Dan Ives remains bullish and expects Tesla’s market cap to hit $2 trillion in 2025. After the recent run-up, Tesla is expensive relative to its AI peers, with the stock selling for 173x forward earnings and 12x next year’s sales. That said, Cathie Wood’s Ark Invest estimates the robotaxi market could be worth as much as $28 trillion over the next decade.
You can wish for a prosperous new year, but strategic actions may get you there quicker. Start by reviewing your growth stock portfolio and replacing the duds with companies poised to shine in 2025.
