In this article, we will take a look at the 10 stocks set to explode in 2025.
“Big Technology are The New Defensives” Strategist Says
As the Magnificent Seven continues to release earnings for the fiscal third quarter of 2024, investors are keen to see if the group can maintain their market leading position and exemplary performance. On October 25, Nancy Tengler, Laffer Tengler Investments CEO & Chief Investment Officer, appeared in an interview on Yahoo Finance to share her market thesis on big tech amid current market conditions.
Tengler suggests that names in big technology boast reliable earnings growth, fitting the basic criteria of such. She adds that she would much rather own big tech names than invest in traditional defensive stocks despite a sluggish economic backdrop. Tengler reiterates her bullish stance on the sector claiming that big technology names are the new defensive and hold much stronger positions in the market.
READ ALSO 10 Oversold Tech Stocks To Buy Right Now and 8 Unstoppable Stocks That Could Make You Richer.
She emphasized that these names have large cash flow reserves, oftentimes, bigger than most countries. Tengler highlights that she is not bullish on all of the names in the magnificent seven and stresses that she has expanded her exposure to the tech sector, adding new stocks to her portfolio. However, at the same time, there are several names within the magnificent seven that cannot be ignored or argued against. She also suggests that investors must seek to invest and own a select few among the group, instead of owning all of them.
She shares that she was previously pessimistic about certain names she held and emphasized that she will focus on margins for certain stocks among the Mag Seven moving forward. Tengler also adds that while these companies have been criticized for pouring billions into capital expenditures, certain names are expected to benefit immensely from AI monetization and their unique cloud services and products.
While many characteristics define exploding stocks, some key traits involve an expanding customer base, improving monetization of offerings, increasing cash flows, and strong fundamentals. Biotech, electric vehicles, artificial intelligence, and cloud are among the few high-growth markets expected to blow up in the coming years. Within these sectors, certain names have been performing exceptionally well in the current market rally and are expected to outperform in 2025. That said, let’s take a look at the 10 stocks set to explode in 2025.
25 Technologies That Have Changed the World
Our Methodology
To come up with 10 stocks set to explode in 2025, we consulted financial media to shortlist stocks that are expected to perform exceptionally well according to analysts and strategists. After consulting 10 similar rankings on the internet we examined the Street-High upside for each stock and picked the ones with the highest upside, as of October 27, 2024. Our list is in ascending order of the street high upside as of October 27, 2024. We have also mentioned the hedge fund sentiment for each stock.
Why are we interested in the stocks that hedge funds pile into? 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 Stocks Set to Explode in 2025
10. Uber Technologies, Inc. (NYSE:UBER)
Street High Upside as of October 27, 2024: 47%
Number of Hedge Fund Holders: 145
Ride-hailing company Uber Technologies, Inc. (NYSE:UBER) is one of the stocks set to explode in 2025. The ride-hailing company is expected to become a completely electric and zero-emission platform by 2040, a major reason for its growing fanbase across the globe.
In Q2 2024, Uber (NYSE:UBER) grew its gross bookings by 21% year-over-year and reported a 14% increase in audience. Last year the company partnered with Waymo to bring autonomous driving technology to UBER. Additionally, to strengthen its position on autonomous driving, the company extended its partnership with Waymo to offer ride-hailing services to Atlanta and Austin by early 2025.
More recently, on October 3, Uber (NYSE:UBER) formed a partnership with ENSO, The Earthshot Prize Finalist, to launch a range of low-emission electric vehicle tires across the United Kingdom and the United States. At the moment, London is Uber’s capital of electrification given that 30% of Uber’s miles in the city are fully electric. Additionally, the company developed a Clean Air Fund worth £145 million to help drivers go electric. As for the finalist, ENSO is developing its carbon-neutral tire factory in the United States, which is expected to be operational by 2027 and will be able to produce over 5 million EV tires every year.
Despite the uncertainty in the autonomous driving industry, Uber Technologies, Inc. (NYSE:UBER) is expected to benefit tremendously from the AI wave, contributing to our list ranking. Analysts are also bullish on the stock, and their 1-year high price target of $114 points to a 47% upside from current levels.
RiverPark Advisors stated the following 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.”
9. Tesla, Inc. (NASDAQ:TSLA)
Street High Upside as of October 27, 2024: 49%
Number of Hedge Fund Holders: 85
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company specializing in producing electric cars and solar-integrated renewable energy solutions. The company is one of the largest EV manufacturers in the United States.
In the third quarter of 2024, Tesla, Inc. (NASDAQ:TSLA) logged revenue worth $25.18 billion, up by 8% year-over-year. Automotive revenues accounted for most of the revenue, at $20.02 billion. While automotive revenues only grew by 2% year-over-year, its energy segment grew by a staggering 52%, logging $2.34 billion in sales. Overall, revenue was driven by increasing vehicle deliveries and rapid growth in its energy segment.
Previously, Tesla, Inc. (NASDAQ:TSLA) launched a new lineup of electric vehicles, to boost the launch of new models. Its new lineup and extensive production line will deliver over 3 million vehicles of capacity when optimized fully. In addition to that, the company produced its 7-millionth vehicle on October 22nd, 2024, a day before the Q3 earnings release date.
Despite sluggish growth in its electric vehicle segment, the company’s investments in AI make autonomous driving a reality, contributing to its position on our list. Tesla is poised for significant growth in the coming years because of its growing emphasis on AI and its stance on sustainability.
Baron Funds mentioned Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter:
“As discussed in the Fund’s prior shareholder letter, the fears about Tesla’s products were misplaced. Instead of the company being exclusively dependent on limited vehicle models and software advancement, the company announced it will more rapidly introduce products that appeal to a wider audience. It also demonstrated that its price reductions were the result of efficiencies rather than only to spur demand. Margins exceeded expectations. And the company’s integration of its hardware with proprietary AI software should facilitate full self-driving capabilities and subsequent new revenue streams. This integration of hardware with software creates a dynamic growth company as it more fully explores its potential with Optimus, humanoid robotics. The combination of these catalysts resulted in Tesla’s stock increasing meaningfully and rapidly in the second half of the quarter. This stock price momentum has continued into the next period.”
8. Roku, Inc. (NASDAQ:ROKU)
Street High Upside as of October 27, 2024: 54%
Number of Hedge Fund Holders: 35
Roku, Inc. (NASDAQ:ROKU) is a streaming television company that ranks eighth on our list of stocks set to explode in 2025. The streaming platform connects the entire TV ecosystem around the world and is available in North America, Latin America, and parts of Europe. The company also sells TVs and owns a channel, Roku Channel, that provides consumers with free, ad-supported content.
The Roku Home Screen, the first step to its streaming experience, reaches more than 120 million people every day in the United States. In the second quarter of 2024, the company logged $969 million in revenue, up by 14% year-over-year. Of this, platform revenue was worth $824 million, up by 11% year-over-year. Streaming households totaled 83.6 million, a net increase of 2 million from Q1 2024.
Roku’s (NASDAQ:ROKU) expansion story is interesting. On October 9, the company forged a partnership with Instacart to advance its advertising partnership. The partnership promises superior targeting and offers new shoppable formats. The new ad formats are interactive allowing the grocery shopping platform to pitch personalized adverts to customers sitting at home watching television.
Roku, Inc. (NASDAQ:ROKU) is set to explode in 2025 and we say that because of its consistent growth in users and streaming households. In Q2 2024, the company achieved its fourth consecutive quarter of positive adjusted EBITDA and cash flow, reflecting its growth trajectory.
O’keefe Stevens Advisory stated the following regarding Roku, Inc. (NASDAQ:ROKU) in its first quarter 2024 investor letter:
“Roku, Inc. (NASDAQ:ROKU) – An idea that would have seemed unthinkable just a few years back when low P/E or low multiple meant the stock was cheap. Roku is free-cash-flow positive, EBITDA breakeven, and GAAP Net Income unprofitable. Historically, investors tend to shy away from unprofitable businesses. Deeming them too risky. Roku has a $2B net cash position and is reinvesting in the business, grabbing Connected TV market share. Geographic expansion takes time and capital. They have a dominant share and have many tailwinds. Walmart’s acquisition of Vizio adds to the already heightened uncertainty. We can’t remember seeing a company with such “negative” sell-side coverage. 9 buys, 10 holds, and 4 sells. Nearly all reports discuss weighting for clarity, which is why the opportunity exists. Wells Fargo has the lowest price target at $45, or 26% downside. We see a reasonable case for a $100 stock in the near term and long term, owning a compounder with an attractive business model, secular tailwinds, and dominant market share that can translate into a desirable return over the next several years.”
7. ASML Holding N.V. (NASDAQ:ASML)
Street High Upside as of October 27, 2024: 61%
Number of Hedge Fund Holders: 81
ASML Holding (NASDAQ:ASML) is a semiconductor equipment company headquartered in the Netherlands. Foundries use ASML’s extreme ultraviolet (EUV) lithography machines to manufacture AI chips.
In the third quarter of 2024, ASML Holding (NASDAQ:ASML) generated EUR 7.5 billion in sales and EUR 2.1 billion in net income. Revenue growth came from the demand for DUV and installed base management sales. In Q3, ASML reported net bookings worth EUR 2.6 billion, of which EUR 1.4 billion comprised EUV. For the fiscal fourth quarter of 2024, the company expects net sales to reach between EUR 8.8 billion and EUR 9.2 billion, with full-year revenue reaching EUR 28 billion.
ASML Holding (NASDAQ:ASML) expects to increase its capacity and improve its technology to meet the surging demand for chips in 2025, expecting sales to range between EUR 30 billion and EUR 35 billion. The company has an 83% market share in lithography, explaining why 81 hedge funds were bullish on the stock at the end of Q2 2024.
According to the company’s CEO, semiconductor inventory and litho tool utilization levels have consistently improved over the past few months for both logic and memory customers, however, the company expects EUV demand to grow rather gradually.
Polen Capital Polen International Growth Strategy stated the following regarding ASML Holding (NASDAQ:ASML) in its fourth quarter 2023 investor letter:
“Netherlands-based ASML Holding N.V. (NASDAQ:ASML) and Japan-based Lasertec play dominant roles within different segments of the global semiconductor industry. In both cases, shares rallied significantly in the fourth quarter of 2023, prompting our positions to grow as a percentage of the overall portfolio. We believe both companies will see demand for their products as extreme ultraviolet (EUV) lithography and soon high-numerical aperture lithography must be utilized to manufacture the world’s smallest chips. However, in our estimation, 2024 could deliver a year of less exciting growth for the semiconductor industry, which prompted us to trim these positions back.”
6. Semtech Corporation (NASDAQ:SMTC)
Street High Upside as of October 27, 2024: 76%
Number of Hedge Fund Holders: 37
Semtech Corporation (NASDAQ:SMTC) ranks sixth on our list of stocks set to explode in 2025. The company is based in California and is engaged in the provision of high-performance semiconductors, IoT systems, and cloud connectivity services.
In the fiscal second quarter of 2025, Semtech Corporation (NASDAQ:SMTC) logged revenue worth $215.4 million, up from $206.1 million during the fiscal first quarter of 2025. The company has been expanding its offerings, explaining why it ranks on our list. In the past two months alone, the company has accelerated its 5G advanced infrastructure, explored scalable paths for 6G, eased broadband deployments, and enhanced its overall offerings.
For the fiscal third quarter of 2025, the company expects net sales to reach $233 million. The growth is projected to be driven by the infrastructure market and demand for data centers. In addition to that, its high-end consumer segment is expected to grow, due to typical seasonality. Lastly, its industrial end market is projected to grow slightly, as recovery gains from FQ2 2025 are expected to be passed on.
Semtech’s (NASDAQ:SMTC) strategic initiatives coupled with its financial standing promise growth in 2025 and beyond. Analysts are bullish on the stock and their high price target implies an upside of 76% from current levels. At the close of Q2 2024, 37 hedge funds were long on the stock, according to our Insider Monkey database.
5. Chord Energy Corporation (NASDAQ:CHRD)
Street High Upside as of October 27, 2024: 80%
Number of Hedge Fund Holders: 56
Chord Energy Corporation (NASDAQ:CHRD) is a hydrocarbon exploration and hydraulic fracturing company headquartered in Texas, United States. The company has an immense focus on acquiring and developing oil and natural gas properties.
In the second quarter of 2024, the company generated revenue worth $1.26 billion, up by 38.22% year-over-year, primarily driven by solid well performance. According to the company’s CEO, efficient production levels and strategic cost control improved free cash flow levels, exceeding overall expectations.
Following the partnership with Enerplus, Chord Energy Corporation (NASDAQ:CHRD) revised its guidance for the complete fiscal year 2024. Now, the company expects to generate $1.2 billion of adjusted free cash flow, boasting a re-investment rate of 55%. In addition to that, adjusted EBITDA is expected to reach $2.9 billion.
On the energy front, the company released its 2023 sustainability report recently, advancing its position in the industry. For the fiscal year ended 2023, Chord Energy Corporation (NASDAQ:CHRD) saw a 9% decrease in scope 1 GHG emissions intensity, compared to 2022, and a 57% decline relative to 2019. In addition to that, the company also posted a 44% decrease in scope 1 methene emissions intensity compared to 2022, and a 70% decline compared to 2019. To align with its corporate social responsibility goals, the company donated $1 million to charitable organizations in the education, environment, and mental health domains.
Overall, Chord Energy Corporation (NASDAQ:CHRD) has strong fundamentals and an attractive position in the industry. CHRD also expects to make capital investments and increase production, positioning the company for long-term sustainable growth.
Madison Investments’ Madison Small Cap Fund stated the following regarding Chord Energy Corporation (NASDAQ:CHRD) in its first quarter 2024 investor letter:
“Our Energy underweight was also a slight drag, although we are optimistic about our singular investment in this sector with Chord Energy Corporation (NASDAQ:CHRD). During Q1 the company announced a strategic combination with Canadian-based Enerplus Corporation (TSX: ERF). Enerplus is one of, if not the best remaining assets in the Bakken and we are very constructive on the financial and strategic merits of this transformational deal. CHRD will become the largest operator in the Bakken, representing about 12% of the basin’s production. With a solid balance sheet post deal, CHRD will now be in the enviable position of either the basin’s main consolidator or most strategic asset as a target for larger E&P companies.”
4. TG Therapeutics, Inc. (NASDAQ:TGTX)
Street High Upside as of October 27, 2024: 110%
Number of Hedge Fund Holders: 38
TG Therapeutics, Inc. (NASDAQ:TGTX) ranks fourth on our list of stocks expected to explode in 2025. The biotech company engages in the acquisition, development, and commercialization of novel treatments for B-cell malignancies and autoimmune diseases.
BRIUMVI, a medicine for adults with relapsing forms of multiple sclerosis, is the company’s major product. In the second quarter of 2024, BRIUMVI sales reached $72.6 million, exceeding expectations. Consequently, the company raised guidance for the full-year sales to reach between $290 million and $300 million. Overall, company revenue reached $73.47 million, up by 357% year-over-year.
TG Therapeutics, Inc. (NASDAQ:TGTX) is making significant efforts to establish solid fundamentals for the company. During the second quarter of 2024, the company established a credit facility to pay its current debt and accelerate the initiation of a share repurchase program. In addition to that, the company is also focused on maintaining solid cash flow, improving marketing efforts, and developing a strong commercial infrastructure.
While the company reported a net loss of $6.9 million during the quarter and $3.8 million for the first half of the year, TG Therapeutics, Inc. (NASDAQ:TGTX) logged a net loss of $47.6 million and $86.8 million for the three and six months ending June 30, 2023. This suggests that the company is slowly closing its loss and will be expected to become profitable by next year. Analysts are also bullish on the stock and their high price target implies an upside of 110% from current levels.
3. Celsius Holdings, Inc. (NASDAQ:CELH)
Street High Upside as of October 27, 2024: 115%
Number of Hedge Fund Holders: 27
Celsius Holdings, Inc. (NASDAQ:CELH) is one of the stocks set to explode in 2025. The beverage company sells a range of fitness and energy drinks. Its energy drinks are clinically proven to boost metabolism.
The company has been operational for the past 20 years and now has 4 core product lines and 3 energy drinks in the United States. Additionally, the company added 6 new countries in 2024. On October 7, Celsius Holdings, Inc. (NASDAQ:CELH) expanded its Essentials line by launching two new flavors. The two new flavors, Watermelon Ice and Grape Slush are extremely refreshing and are focused on performance.
In the second quarter of 2024, Celsius Holdings, Inc. (NASDAQ:CELH) generated $402 million in revenue, up by 23% year-over-year, and gross profit worth $209.1 million, up by 32% year-over-year. Its energy drinks brand, Celsius was the major contender, making up for 47% of the total Q2 revenue growth. For the first half of 2024, revenue reached $757.7 million, up by 29%. Of this, international sales accounted for $35.8 million, up from $26.4 million in Q2 2023.
Overall, Celsius Holdings, Inc. (NASDAQ:CELH) has a huge opportunity to expand into new markets across the globe. Analysts are also bullish on the stock and their high price target represents an upside of 115% from current levels. 27 hedge funds were bullish on the stock at the close of Q2 2024, according to our Insider Monkey database.
Artisan Partners’ Artisan Mid Cap Fund stated the following regarding Celsius Holdings, Inc. (NASDAQ:CELH) in its Q2 2024 investor letter:
“Among our top detractors were Lattice Semiconductor, Exact Sciences and Celsius Holdings, Inc. (NASDAQ:CELH). Celsius is an energy drink company viewed as providing a healthier option than its large competitors. We believe Celsius’ product portfolio appeals to a broad demographic, creating new consumers and generating more frequent usage occasions in the energy drink category. As a result, Celsius has been able to grow sales through market share gains and market expansion. Furthermore, the company signed a US distribution partnership with PepsiCo in October 2022, expanding its distribution and increasing penetration wherever it’s already sold. Shares sold off due to Pepsi selling down elevated inventory and recent data indicating broader weakness within the energy drink category. We will monitor US category trends, but the company continues to capture market share and expand margins. Meanwhile, there remains a large opportunity for international expansion. We modestly added to the position.”
2. Super Micro Computer, Inc. (NASDAQ:SMCI)
Street High Upside as of October 25, 2024: 175%
Number of Hedge Fund Holders: 47
Super Micro Computer, Inc. (NASDAQ:SMCI) is an information technology company based in California, United States. The company provides computing, storage, networking, and green computing technology solutions. It specializes in developing enterprise, cloud, AI, Metaverse, and 5G Telco/Edge infrastructure.
With operations in more than 100 countries, Super Micro Computer, Inc. (NASDAQ:SMCI) ranks second on our list of stocks set to explode in 2025. The company is thriving in the server segment. A few weeks ago, SMCI introduced high-performance Intel-based servers for AI, Cloud, and Edge. Earlier in June, Super Micro Computer, Inc. (NASDAQ:SMCI) added 3 new manufacturing facilities in Silicon Valley and globally to support the accelerating demand for AI and Enterprise solutions.
According to the company’s CEO, the new servers will help SMCI develop customized solutions for their clients. To expand its position in the industry, on October 15, Super Micro Computer (NASDAQ:SMCI) launched a new optimized storage solution for high-performance AI training, inference, and HPC workloads. The system uses data processing units from NVIDIA, serving as the foundation for AI data platforms that demand top-notch performance and efficacy.
In the fiscal year 2024, Super Micro Computer, Inc. (NASDAQ:SMCI) logged $14.94 billion in revenue, up by 110% year-over-year, driven by its new AI infrastructure. Note that the company’s FQ4 2024 revenue alone exceeded the revenue for the complete fiscal year 2022. Analysts are also bullish on the stock and their high price target represents an upside of 175% from current levels.
1. Snowflake Inc. (NYSE:SNOW)
Street High Upside as of October 27, 2024: 331%
Number of Hedge Fund Holders: 69
Snowflake Inc. (NYSE:SNOW) is a leading AI data cloud company in the United States. The company has more than 10,200 global customers that use its data storage, processing, and analytics products. Its AI data cloud is used by various companies including Adobe, AT&T, HP, Mastercard, PepsiCo, Nielsen, Siemens, Yamaha, and US Foods, to name a few.
Snowflake Inc. (NYSE:SNOW) launched its enterprise AI to more users earlier this year. The new enterprise AI unlocks advanced chat experiences, allowing organizations to develop chatbots within a few minutes. Fast forward to October, the company recently partnered with ServiceNow, an AI platform for business transformation. The two companies came together to connect enterprise-wide data to solve mission-critical problems at scale.
In the fiscal second quarter of 2025, Snowflake Inc. (NYSE:SNOW) logged $829.3 million in product revenue, representing a 30% growth rate year over year. Total revenue amounted to $868.8 million, up by 29% year over year. As of FQ2 2025, 510 of its customers had a trailing 12-month product revenue worth more than $1 million, a testament to the company’s performance. As a result, the company increased its guidance for FY 2025. For the full fiscal year 2025, Snowflake Inc. (NYSE:SNOW) expects product revenue to reach $3.36 billion, representing a growth rate of 26%.
Overall, Snowflake Inc. (NYSE:SNOW) is one of the stocks set to explode in 2025 because it is transitioning to becoming a company fully backed by AI. Analysts are also bullish on the stock and their high price target represents an upside of 330.89% from current levels. 69 hedge funds were bullish on the stock as of Q2 2024.
While we acknowledge the potential of SNOW to grow, our conviction lies in the belief that certain 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 SNOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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