In this article, we will look at the 10 Best Stocks to Buy for High Returns in 2025.
Market Outlook 2025
On December 17, 2024, J.P. Morgan released its market outlook 2025. The report expects the global economy to continue growing at a robust rate, however a sharp slowdown in China is expected. Regarding the equity market, the firm anticipates depressing trends across stocks, sectors, and themes. Analysts at the firm estimate the S&P 500 to be around 6,500 in 2025 with earnings per share of $270. The head of Global Market Research, Hussain Malik noted that the policies of the United States regarding trade, immigration, and regulatory policy will play a critical role in defining the year’s outcome for the country and globally.
The report further elaborated on its anticipation of a depressed stock market by highlighting de-coupling central bank policies, uneven progress in disinflation, and ongoing technological innovation. Moreover, increased geopolitical tensions are also likely to add unusual complexity to the global stock market. Despite all this, the firm has bright expectations for the United States. It believes that the country will remain a key driver of growth due to factors such as an expanding business cycle, a robust labor market, increased capital spending related to AI, and active capital markets. On the other hand, Europe is expected to grapple with structural challenges, while emerging markets may face headwinds from persistent high interest rates, a strong US dollar, and trade policy issues.
Lakos-Bujas, head of Global Markets Strategy at J.P. Morgan warned that a key risk to their base case involves disinflation stalling or reversing, which could prompt the Federal Reserve to consider interest rate hikes later in 2025 or early 2026. Such developments would necessitate a reassessment of their market outlook.
With that, let’s take a look at the 10 best stocks to buy for high returns in 2025.
A close-up view of a chart tracking the performance of the common stocks of a public company.
Our Methodology
To curate the list of the 10 best stocks to buy for high returns in 2025, we used Insider Monkey’s third-quarter hedge funds database. We checked the 25 most widely held stocks by hedge funds for 10-year growth rates from Seeking Alpha and ranked these stocks in ascending order of the number of hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Stocks to Buy for High Returns in 2025
10. Tesla, Inc. (NASDAQ:TSLA)
10-Year Revenue Growth: 42.28%
Number of Hedge Fund Holders: 99
Tesla, Inc. (NASDAQ:TSLA) is one of the best stocks to buy for high returns in 2025. The company holds the title of being one of the pioneers in the electric vehicle industry. It is known for its popular electric vehicles including the Cyber Truck, Model 3, Model S, Model Y, and Model X. In addition to electric vehicles, the company is also pushing boundaries with its autonomous driving technology and humanoid robots.
On January 22, Alexander Potter analyst at Piper Sandler raised his price target for Tesla, Inc. (NASDAQ:TSLA) from $315 to $500, calling it the best stock to Buy and Hold. His sentiment is based on the expectation that the company will deliver around 1.96 million vehicles in 2025, which is a 1.79 million increase from 2024. However, Potter expects the first half of 2025 to be a bit choppy for the company as the timing of new product launches has not been announced yet.
Potter’s analysis regarding Tesla, Inc. (NASDAQ:TSLA) is in line with management’s plan for the year. During the earnings call for the fiscal third quarter of 2024, CEO Elon Musk highlighted that the company is strategically focusing on expanding its vehicle production and also enhancing accessibility by introducing more affordable models during the first half of 2025. The company plans to launch affordable models priced between $30,000 and $35,000 before tax credits. Moreover, the company is also set to begin volume production of the Cybercab in 2026, targeting an annual output of at least 2 million units, with potential scalability of up to 4 million units in the future. This expansion aligns with Tesla’s vision of becoming a leader in sustainable and autonomous transportation. Here’s what Infuse Asset Management stated regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“I’ve been very patient with Tesla, Inc. (NASDAQ:TSLA). Frankly, I’m a big believer in Elon but I also hate investing in companies where the narrative far outweighs any financial evidence. I do see a path to Tesla being one of the world’s largest companies but slight growth in a cyclical industry with very little pricing power is not a recipe for strong forward returns. Though the AI/robotics narrative is strong, I’m not adding at current prices since we haven’t seen much of the narrative translate into the earnings yet. This cognitive dissonance can be an uncomfortable tension but I’m trying to look at the big picture here. So while I fully admit that Tesla may be overvalued in the short run, the long-term destination of the company should not be underestimated.”
9. Alibaba Group Holding Limited (NYSE:BABA)
10-Year Revenue Growth: 31.26%
Number of Hedge Fund Holders: 115
Alibaba Group Holding Limited (NYSE:BABA) is the largest Chinese multinational e-commerce company that also focuses on emerging technologies including artificial intelligence and cloud computing. The company currently owns around 46% market share of the Chinese e-commerce industry.
The company is strategically positioned to benefit from the opportunities presented by the rise in demand for artificial intelligence. Within its Cloud segment, the company unveiled an expanded suite of large language models (LLMs) under its Qwen family, including the Qwen 2.5 series. These models range from 7 billion to 72 billion parameters and are now accessible through APIs on the Model Studio platform, aimed at empowering global developers to create innovative AI applications more efficiently.
The cloud segment of Alibaba Group Holding Limited (NYSE:BABA), Alibaba Cloud, reported a 7% revenue increase during the fiscal second quarter of 2025. The growth was driven by double-digit growth in public cloud services. Notably, AI-related products within this segment showed remarkable performance, maintaining triple-digit growth for five consecutive quarters.
On January 21, Joyce Ju, analyst at BofA raised the price target for the stock to $117 from the previous target of $112. The analyst kept a Buy rating on the stock. The firm believes that the company will report 9% year-over-year during the fiscal third quarter of 2025, surpassing Street’s expectation by 2%. Alibaba Group Holding Limited (NYSE:BABA) ranks as the 9th best stock to buy for high returns in 2025.
Conventum – Alluvium Global Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2024 investor letter:
“On 24 September the People’s Bank of China unveiled a massive three part stimulus package involving: (1) slashing the amount of cash banks need to hold in reserve and lowering the main policy interest rate; (2) cutting mortgage rates on existing home loans by 0.5% and reducing down payment requirements for second homes from 25% to 15%; and (3) supporting equity markets by a USD 114b lending pool to encourage companies to buy back shares and non-bank financial institutions to buy local equities (which may be expanded by the same amount two more times)5 . We are flabbergasted. But we shouldn’t be. After all, these types of arrangements have been all too common over the last 15 years. The local equity markets responded with gusto, and for the last week of the quarter the CSI 300 Index (Shanghai and Shenzen listed companies) was up 25.1%. Alibaba Group Holding Limited (NYSE:BABA) was not lost in all this, and returned 26.8% over that one week period. But Alibaba had already performed well so during the whole September quarter it was up a staggering 56.0%. As a result, Alibaba is no longer the cheap stock it once was. It now trades at a premium to our valuation – a valuation which admittedly had been progressively reduced over our holding period as a result of deteriorating business fundamentals. As a result of Alibaba’s significant outperformance, by the end of the quarter it had reached 3.7% of the Fund. We are weighing up our options here, considering the relative risk.”
8. Salesforce, Inc. (NYSE:CRM)
10-Year Revenue Growth: 22.04%
Number of Hedge Fund Holders: 116
Salesforce, Inc. (NYSE:CRM) is a leading customer relationship management (CRM) company that helps businesses manage their interactions with customers. It does so through a cloud-based platform called Customer 360, which integrates marketing, sales, analytics, and AI to ensure smooth customer relationship management. The company has recently launched its AI-powered platform called Agentforce, a cutting-edge platform designed to create and manage autonomous AI agents that can perform various business functions.
On January 23, Bradley Sills, analyst at BofA reiterated his Buy rating on the stock, while maintaining his price target of $440. The analyst noted that even after a strong performance in 2023 and 2024, where the stock gained 98.5% and 27.1% respectively, Salesforce, Inc. (NYSE:CRM) remains undervalued compared to its peers. Bradley believes that this combined with 12% to 13% year-over-year revenue growth expectation for the second half of 2026, driven by Agentforce and strong spending makes the stock a Buy for high returns.
During the fiscal third quarter of 2024, Salesforce, Inc. (NYSE:CRM) grew its revenue by 8% year-over-year to reach $9.44 billion, driven by its competitive Agentforce platform. Moreover, on December 12, the company introduced the next version of its platform called Agentforce 2.0, a significant upgrade to its digital labor platform aimed at creating a limitless workforce powered by autonomous AI agents. The upgraded version includes a comprehensive library of pre-built skills that allow businesses to quickly customize AI agents for specific tasks. These skills span across various applications, including CRM, Slack, and Tableau, making it easier for teams to deploy agents without extensive setup time. It is one of the best stocks to buy for high returns in 2025.
Montaka Global Investments stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:
“There are multiple structural trends in the enterprise software space, including (i) the ongoing cloud migrations and digital transformations of enterprises, and (ii) the infusion of AI into software applications.
While the former remains in its early innings (80-85% of enterprise workloads still reside ‘on-premise’ – many of which will ultimately move to public clouds), the latter remains in its infancy.
Given all the hype of late, it’s hard to fathom that large-scale deployments of AI-based enterprise applications have barely even started. It’s all still to come. And we believe 2025 will be the first year that we really start to see meaningful deployments and adoption of these kinds of applications.
Consider another of our top 10 holdings, Salesforce, for example. Its revenue growth is at a cyclical low. Indeed, at just +8% per annum, as reported in the company’s most recent quarter, its rate of revenue growth has never been lower.
But in 2025, not only will price increases that were announced two years ago boost Salesforce, Inc.’s (NYSE:CRM) revenue growth, but the year will also mark the early stages of adoption of the company’s new ‘Agentforce’ (released only weeks ago). This is a new platform that lets businesses build and deploy their own custom AI agents to automate tasks, improve efficiency, and enhance customer experiences…” (Click here to read the full text)
7. Netflix, Inc. (NASDAQ:NFLX)
10-Year Revenue Growth: 21.88%
Number of Hedge Fund Holders: 121
Netflix, Inc. (NASDAQ:NFLX) runs an online streaming platform where users can watch movies, and TV shows, play games, and avail of other streaming services. The company has been gaining subscribers due to engaging content on its platform. During the fiscal fourth quarter of 2024, Netflix, Inc. (NASDAQ:NFLX) executed its commitment to accelerating growth. It grew its revenue by 16% year-over-year while expanding its profit margins by six points to 27%. Management noted that it added 19 million net additions to its subscribers, which is the biggest net additions during a quarter in its history.
On January 24, Laurent Yoon, an analyst at Bernstein, upgraded the stock to Outperform from Market Perform. The analyst also raised the price target from $975 to $1,200 stating that the firm believes Netflix, Inc. (NASDAQ:NFLX) can post another year of double-digit growth in 2025. The analyst believes that there are still many international markets that remain underpenetrated by the company. Management has also raised its revenue expectation by $500 million for 2025 indicating they can generate more revenue from its memberships. It is one of the best stocks to buy for high returns in 2025.
Montaka Global Investments stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:
“There are multiple structural trends in the enterprise software space, including (i) the ongoing cloud migrations and digital transformations of enterprises, and (ii) the infusion of AI into software applications.
While the former remains in its early innings (80-85% of enterprise workloads still reside ‘on-premise’ – many of which will ultimately move to public clouds), the latter remains in its infancy.
Given all the hype of late, it’s hard to fathom that large-scale deployments of AI-based enterprise applications have barely even started. It’s all still to come. And we believe 2025 will be the first year that we really start to see meaningful deployments and adoption of these kinds of applications.
Consider another of our top 10 holdings, Salesforce, for example. Its revenue growth is at a cyclical low. Indeed, at just +8% per annum, as reported in the company’s most recent quarter, its rate of revenue growth has never been lower.
But in 2025, not only will price increases that were announced two years ago boost Salesforce, Inc.’s (NYSE:CRM) revenue growth, but the year will also mark the early stages of adoption of the company’s new ‘Agentforce’ (released only weeks ago). This is a new platform that lets businesses build and deploy their own custom AI agents to automate tasks, improve efficiency, and enhance customer experiences…” (Click here to read the full text)
6. Broadcom Inc. (NASDAQ:AVGO)
10-Year Revenue Growth: 28.30%
Number of Hedge Fund Holders: 128
Broadcom Inc. (NASDAQ:AVGO) is a major global technology company that specializes in creating and providing a wide variety of semiconductors and software solutions. The company focuses on creating custom silicon chips that are essential for hyperscale data centers, thereby making it a significant player in the artificial intelligence industry.
The stock railed by more than 97% last year on the back of tailwinds from artificial intelligence. During the fiscal fourth quarter of 2024, Broadcom Inc. (NASDAQ:AVGO) generated $14.05 billion in revenue up 51% year-over-year. Growth was driven by increased demand for its AI accelerators (XPUs) and networking solutions as AI revenue for the same quarter went up by 220% year-over-year. Moreover, the acquisition of VMware has been pivotal for Broadcom, enhancing its capabilities in virtualization and cloud management. Management noted that its infrastructure software revenue grew to $21.5 billion during fiscal 2024, driven by the acquisition.
On January 23, Vijay Rakesh analyst at Mizuho raised his price target on the stock from $245 to $260, while keeping a Buy rating on AVGO. The analyst noted Broadcom Inc. (NASDAQ:AVGO) to be one of his top picks for 2025 as he believes the company will continue to gain strength from its demand for AI custom silicon chips.
Munro Global Growth Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) contributed 94bps to Fund performance for the quarter. Broadcom is a fabless semiconductor company that designs semiconductors for a range of different industries and applications, based in Palo Alto, California. The company plays an important role in providing semiconductors for AI, specifically, they provide hyperscale data centre companies custom silicon chips. Over time, as companies such as Meta, Alphabet, Amazon and Microsoft build out their AI offering, the critical semiconductor content will come from both custom silicon chips, designed by companies such as Broadcom, and merchant silicon chips, designed by Nvidia. Depending on the use case, or workload, the hyperscaler will use either a custom silicon semiconductor or a merchant silicon semiconductor. Therefore, over time we expect AI processes to be driven by both Nvidia designed chips and custom designed chips from Broadcom and its peers.
On their recent earnings call, Broadcom CEO Hock Tan confirmed that the company’s customers are rapidly pursuing the development of a 1 million XPU cluster of chips. To translate what this means for Broadcom, Hock laid out the Serviceable Addressable Market (SAM) opportunity for the company’s AI revenues over the next 3 years to 2027. In 2024, Hock noted that Broadcom’s SAM was $15-20bn USD, of which the company commanded an approximate 70% share. In 2027, that SAM is expected to grow to $60-90bn USD, and assuming Broadcom captures an approximate 60% share, this gives rise to $50bn USD of AI revenue opportunity for the company over the next 3 years. For the company overall, this means that revenue has the potential to double over the next 3 years. We believe the technology road map outlined by Broadcom and the resulting revenue opportunity gives rise to a multi-year runway of earnings growth backed by a large structural change.”
5. Uber Technologies, Inc. (NYSE:UBER)
10-Year Revenue Growth: 26.31%
Number of Hedge Fund Holders: 136
Uber Technologies, Inc. (NYSE:UBER) is a technology company that operates a Software-as-a-Service (SaaS) platform that primarily connects riders with drivers along with food deliveries, public transport integration, and grocery shopping. It operates in more than 70 countries around the world and is one of the best stocks to buy for high returns in 2025.
The company performed well during the fiscal third quarter of 2024, it not only delivered an all-time high GAAP operating profit of over $1 billion but also improved its gross bookings by 20% year-over-year. As of the third quarter, Uber Technologies, Inc. (NYSE:UBER) had over 161 monthly subscribers with an increased trip frequency.
There have been some concerns regarding the company due to the rise of autonomous driving vehicles. However, Eric Sheridan, an analyst at Goldman Sachs placed the stock as one of the top picks for 2025. He noted that the risk-to-reward situation for the company remains balanced. He argued that the concern regarding autonomous vehicles is short-term term and he is focused on the long-term prospects of the company. Moreover, the management of Uber Technologies, Inc. (NYSE:UBER) is collaborating with 14 partners including NVIDIA to develop its autonomous vehicle technology faster. Here’s what RiverPark Large Growth Fund stated regarding Uber Technologies, Inc. (NYSE:UBER) in its first quarter 2024 investor letter:
“Uber Technologies, Inc. (NYSE:UBER): UBER was a top contributor in the quarter following better than expected 4Q23 earnings and 1Q24 guidance. Gross bookings of $37.6 billion were up 22% year over year. Mobility gross bookings of $19.3 billion grew 29% over last year driven by a combination of product innovation and driver availability. Delivery gross bookings of $17 billion were up 19% from last year and continued to be strong throughout the quarter. 4Q Adjusted EBITDA of $1.3 billion, up $618 million year over year, was better than management’s guidance of $1.2 billion, and the company generated $768 million of free cash flow, up from a cash loss of $303 million last year. Management guided to continuing growth in 1Q Gross Bookings (20% growth) and Adjusted EBITDA (of $1.3 billion). The company hosted a well-received analyst day in February during which it guided to three year compounded annual growth rates for gross bookings of mid-to-high single digits and EBITDA of 30-40%, both above investor expectations. The company also guided to free cash flow conversion of 90% of EBITDA.
UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now profitable, delivering expanding margins and substantial free cash flow. We view UBER as more than a ride sharing and food delivery service; we also see it as a global mobility platform with 142 million users (by comparison, Amazon Prime has 200 million members) and the ability to penetrate new markets of on-demand services, such as package and grocery delivery, travel, and hourly worker staffing. Given its $5.4 billion of unrestricted cash and $4.8 billion of investments, the company today has an enterprise value of $165 billion, indicating that UBER trades at 21x our estimates of next year’s free cash flow.”
4. NVIDIA Corporation (NASDAQ:NVDA)
10-Year Revenue Growth: 37.84%
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) is one of the key companies leading the development of AI with its semiconductors and highly powered AI GPUs. Its latest Blackwell GPU series, which is the successor to the H100 and H200 GPUs, is said to be the world’s most powerful chip for AI workloads.
On January 2, BofA maintained a Buy rating on NVDA, naming the stock to be one of their top picks for 2025. Vivek Arya, who is an analyst at BofA kept his price target of $190 stating that he believes the company’s project valuations can grow up to $4 billion in the near future. NVIDIA Corporation (NASDAQ:NVDA) in its fiscal fourth quarter of 2024 grew its revenue by 265% year-over-year to $22.1 billion, which easily surpassed the $20 billion outlook.
Analysts expect that NVIDIA Corporation (NASDAQ:NVDA) can be amongst the top gainers in 2025, particularly due to the recent announcement of a $500 billion AI project by newly inaugurated President Donald Trump. The President along with Oracle, SoftBank, and OpenAI has announced this project to assure the United States take leadership in this technology. This could be a potential opportunity for the company as OpenAI in its statements has named NVIDIA Corporation (NASDAQ:NVDA) to be one of the main technology partners for the project. It ranks 4th on our list of best stocks to buy for high returns in 2025.
Infuse Asset Management stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“We do still own some NVIDIA Corporation (NASDAQ:NVDA) as the forward multiple isn’t egregious and it powers over 90% of AI workloads. This company is only becoming increasingly important though the hyperscalers are actively trying to save money through their own ASIC programs. The moat CUDA provides has been underestimated time and time again. While I don’t think Nvidia has quite the upside as some of the other companies in the portfolio, it has a product that the best companies in the world literally can’t get enough of.”
3. Alphabet Inc. (NASDAQ:GOOGL)
10-Year Revenue Growth: 18.24%
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) is a diverse technology holding company that primarily oversees Google and its various subsidiaries. While most investors know the company due to its popular search engine, it is also a leading player in AI. The company has launched its Gemini AI chatbot and also recently debuted its Gemini 2.0, which will enable AI to do more complex tasks.
On January 24, Scotiabank raised its price target for Alphabet Inc. (NASDAQ:GOOGL) from $212 to $240, while keeping its Outperform rating on the stock. The firm believes in consistent demand for its products and services throughout 2025. The company during its fiscal third quarter of 2024, demonstrated robust business expansion. It grew its revenue by 15% year-over-year to reach $88.3 billion, with a net income of $26.3 billion indicating high profitability. It is one of the best stocks to buy for high returns in 2025.
Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”
2. Meta Platforms, Inc. (NASDAQ:META)
10-Year Revenue Growth: 30.15%
Number of Hedge Fund Holders: 235
Meta Platforms, Inc. (NASDAQ:META) is a global technology company that develops social media platforms and virtual reality technologies. The company has also launched its AI chatbot which users can access while using Facebook, Instagram, and WhatsApp.
On January 23, Bank of America maintained its Buy rating on the stock and raised its price target to $710 from its previous target of $660. The firm remains confident in management’s cost discipline and its potential in AI capabilities. According to a recent report by The New York Times, CEO, Mark Zuckerburg has plans to increase spending on AI. Meta Platforms, Inc. (NASDAQ:META) plans to invest around $60 to $65 billion in artificial intelligence in 2025. This is a huge difference from the $40 billion the company has spent in 2024. Management also plans to launch its own GPUs by the end of the year. It is one of the best stocks to buy for high returns in 2025.
Hardman Johnston Global Equity stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q3 2024 investor letter:
“During the quarter, we initiated one new position in Meta Platforms, Inc. (NASDAQ:META) and had no liquidations. Management at Meta has effectively addressed concerns about investment efficiency by shifting resources from Reality Labs towards broader AI initiatives with a clearer path to profitability. We believe management has successfully articulated the benefits of this strategy, highlighting how AI is driving user engagement and advertiser productivity. This, in turn, fuels continued revenue momentum and increases the likelihood of positive earnings surprises in the future. Additionally, the parent company of the social media platform, Facebook, has recently taken positive steps to enhance safety, which suggests to us a shift towards a more proactive and responsive approach to addressing important potential challenges and concerns. Weak oversight over data privacy protection was a key reason why we sold the position in the portfolio back in 2021. Removing this governance overhang allows us to feel comfortable to enter back into the stock at a time when we believe it is poised for strong earnings growth going forward.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
10-Year Revenue Growth: 21.95%
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) is a major e-commerce, streaming, and cloud technology giant that ranks as the best stock to buy for high returns. The company has made significant developments with regard to artificial intelligence, including AWS cloud partnerships and Tranium to strengthen its position in AI development.
On January 23, Scotiabank raised its price target for the stock from $246 to $306, while keeping its Outperform rating. The firm believes consistent demand for large-cap stocks and AMZN is one of its top picks for 2025. During the fiscal third quarter of 2024, Amazon.com, Inc. (NASDAQ:AMZN) generated $158.9 billion in revenue, up 11% year-over-year. Management noted that its e-commerce segment grew its revenue by 60% during that time driven by the incorporation of AI features. Moreover, the AWS segment took the lead in delivering profitability as the segment added $10.4 billion to the overall operating income of $17.4 billion. Amazon.com, Inc. (NASDAQ:AMZN) is the best stock to buy for high returns in 2025.
Vulcan Value Partners stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“There were five material contributors to performance: Amazon.com, Inc. (NASDAQ:AMZN), Salesforce Inc., Live Nation Entertainment Inc., Carlyle Group Inc., and Alphabet Inc. Amazon.com is a dominant, world class company with powerful secular tailwinds in place including its e-commerce penetration, digital advertising growth, and the cloud transition. Amazon reported strong results during the quarter. The market is beginning to reward the company for its untapped margin opportunity in the core retail business as its consolidated operating margins expanded.”
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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