2025 Investment Forecast: What Literally Should You Consider Buying?

This marks the second-to-last segment of my 2025 outlook series. In my previous two articles, I delved into the expected inflation for 2025, the performance of the U.S. stock market in 2024, and made predictions on industries likely to excel.

 

As I bid adieu to the old year and usher in the new one, this final 2025 outlook will spotlight a selection of stocks primed for investment as we ring in the New Year.

 

Given the content's length, a portion will be featured in the upcoming issue.

 

 

In this context, the U.S. stock market in 2025 will have a strong upward momentum, but it will also encounter greater volatility.

 

 

 

To be honest, in this era, if you don't buy any AI - related stocks, you're probably not an excellent investor.

 

This is something I often emphasized in my previous articles. Embracing "AI" is fine for people in all walks of life, but the key is how AI can make money.

 

As time goes by, AI in 2025 may no longer be a hyped - up concept but will bring tangible performance improvements.

 

NVIDIA: When it comes to AI, NVIDIA is the first to come to mind.

 

Undoubtedly, NVIDIA has been the focus of the stock market in 2024.

It holds an absolute dominant position in the key semiconductor field required to drive the AI revolution.

 

 

The latest fiscal 2025 third - quarter financial report shows that the company's quarterly revenue reached $35.1 billion, a 94% increase compared to the same period last year.

 

Among them, the revenue of the data center department, which focuses on AI, reached $30.8 billion, while in the same period in 2021, the data center revenue was only $2.9 billion.

 

Good performance has raised investors' expectations. Since the beginning of 2024, NVIDIA's stock price has nearly tripled.

 

At the same time, the demand for the company's next - generation Blackwell chips is strong, and people believe it will continue to drive the company's performance growth in the coming quarters.

 

However, as revenue growth slows down, the "law of large numbers" may start to take effect, and NVIDIA's stock price may not soar as it did in the past.

 

Nevertheless, with its control over the artificial intelligence chip field, it will surely continue to be one of the hottest growth stocks in 2025.

 

So, buying it is a good choice.

Google: Although Google has recently reached an all - time high. In terms of fundamentals and valuation, Google has been the least favored among the seven major technology companies in the past two years.

 

Mainly due to its exposure to antitrust risks and the revolutionary impact of AI technology on its search business.

 

But in fact, after Trump came to power, one of the main trends is to relax the regulation of technology.

 

This reform may reduce Google's monopoly risks.

 

 

Google is clearly a company that has made significant arrangements and leads in both search and AI.

 

And if Google can lead the AI search business, then Google's stock price may rise further, making it the most popular among the seven major technology companies.

 

If you think deeply about the AI search business, you will find that its imagination space is infinite.

 

So, buy it.

Palantir Technologies, the "Eye of God": I wrote a rough analysis of its soaring stock price a few days ago.

 

If you're interested, you can take a look, so I won't elaborate too much here.

 

Undoubtedly, PLTR is riding the dual winds of the booming development of AI applications and the increase in global defense spending, becoming an eye - catching growth stock in the eyes of investors in 2025.

 

Incidentally, its increase this year is approximately 350%. I expect that in 2025, political tensions in various places will still intensify, which will in turn drive an increase in global defense budgets.

 

Palantir is expected to obtain lucrative contracts as a result.

 

As a powerful tool for the U.S. government, both politically and in warfare, the "Eye of God" is the best choice for investors who hope to set foot in the AI and defense fields.

 

 

Judging from Trump's past governance and various declarations in this election campaign, the sluggish consumer economy in the United States is bound to recover.

 

So, which stocks can we pre - arrange?

 

Its cumulative increase in the past two years has exceeded 80%.

 

It is not just a retailer; it is a long - term growth driver built on unparalleled value and loyal customers.

 

Over the years, Costco has proven its ability to adapt, innovate, and thrive, making it the top choice for stock investors to hold for the next five years or more.

 

In the past decade, Costco's revenue and net profit have continued to grow, thanks to its strategic focus - the membership model, which generates recurring revenue.

 

Costco focuses on bulk commodities and competitive pricing, which resonates with value - conscious shoppers, especially during periods of high inflation.

 

Costco's membership card renewal rate exceeds 90%, providing it with a reliable source of income and also driving expansion and shareholder returns.

 

At the same time, the company is strengthening its e - commerce business to ensure its competitiveness in the digital age while maintaining its unique efficiency.

 

Investors who buy Costco stock today are not only investing in a retailer but also in an enduring enterprise.

 

So, buy it.

 

"I drink coffee in the morning and go to buy bags in the afternoon."

 

This is a statement made by one of my best friends.

 

And the reason I put these two together is that I think their opportunities have arrived.

 

Under the leadership of the new CEO Brian Niccol (famous for successfully turning around the Mexican fast - food chain Chipotle),

 

Starbucks has announced an ambitious plan to revitalize its brand. Niccol's plan, called the "Return to Starbucks" plan, focuses on creating a warm "third - place" experience by redesigning stores, simplifying the menu, and enhancing operational processes.

 

If Niccol's plan is successful, Starbucks will regain its competitive edge and bring huge value to shareholders in the process.

 

Regarding the recent high - profile employee strikes and protests, I actually think there's no need to worry too much.

 

When a giant wants to stand up again from the ground, it is bound to crush some of the grass around it.

 

I also believe that Starbucks' management can handle this incident properly. To be honest, even if they can't handle it well, I don't think it will have a big impact on the company. I value the "third - place" narrative more.

 

Louis Vuitton (LVMH): After three consecutive years of sharp increases from 2019 to 2021, Louis Vuitton has been in a sideways trend for three years.

 

During these three years, most U.S. value stocks have performed well. Currently, there have never been so many wealthy people in the world, and they are richer than ever.

 

This is a potential opportunity for LVMH. The LVMH Group owns more than 60 brands. Currently, the expected price - to - earnings ratio of LVMH in the U.S. stock market in 2025 is only 23 times.

 

As a world - famous consumer stock with a high moat, against the backdrop of consumer recovery, the largest number of wealthy people in history, and a relatively low valuation, it is expected to continue to rise.

 

Thank you for reading，and I will talk about the rest in the next issue.

 

Finally, happy New Year, friends.