In this article, we will discuss the 10 Unstoppable Stocks to Buy in 2025.
As per the recent earnings update by FactSet dated 24th January 2025, the Q4 2024 earnings season for the S&P 500 has seen a strong start. Notably, the percentage of S&P 500 companies publishing positive earnings surprises and the magnitude of earnings surprises are more than 10-year averages. The analysts anticipate YoY earnings growth rates of 11.3% and 11.6% for Q1 2025 and Q2 2025, respectively. For CY 2025, they project a YoY earnings growth of 14.8%.
Outlook for US Equities For 2025
UBS expects the S&P 500 to reach 6,600 by 2025. Despite the potential for tariff imposition, which can result in volatility over the short term, UBS expects that healthy US economic growth and structural tailwinds from AI might lend some support. The combination- resilient growth and lower Fed rates- has earlier been a powerful force for US stocks. History has suggested that when the Fed cut rates and the country did not enter recession, the broader US equities saw an increase of 18% on average in the 12 months after the first cut.
UBS also believes that the earnings season showcases strong AI capital spending intentions, which supports the positive outlook on technology stocks. Furthermore, the earnings growth continues to broaden into non-tech companies. The US deregulation and tax cuts might support this trend.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Growth Drivers for the US Equities
UBS expects that the US economic backdrop remains supportive, the broader market is less at risk from tariffs compared to other international markets, and structural trends around AI and power & resources boost the outlook. It believes technology, utilities, financials, and healthcare sectors are attractive in the US. The AI infrastructure spending is strong, and the firm expects that key semiconductor components required for AI will remain supply-constrained in 2025, supporting pricing. Furthermore, the tech sector is expected to benefit from an improvement in PC and smartphone end markets.
With respect to utilities, UBS expects that significant growth in AI data centers will fuel power demand, resulting in higher power prices. While the broader financials sector is expected to be aided by Fed rate cuts, the healthcare sector might see recovery in the next few months. This recovery is expected to be driven by higher healthcare spending and advancements in digitalization that can fuel efficiency and reduce costs.
With this in mind, we will now have a look at the 10 Unstoppable Stocks to Buy in 2025
Our Methodology
To list the 10 Unstoppable Stocks to Buy in 2025, we used a screener to filter out the companies having at least $2 billion of market capitalization. Next, we chose stocks that have gained more than 30% over the past 6 months and in which analysts expect an upside of at least 30%. Finally, the stocks were arranged in ascending order of their average upside potential, as of 27 January. We also mentioned the hedge fund sentiment around each stock, as of Q3 2024.
At Insider Monkey we are obsessed with 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 Unstoppable Stocks to Buy in 2025
10) Rumble Inc. (NASDAQ:RUM)
Market Cap as of 27th January: $4.83 billion
Return Over 6 Months: ~97.8%
Average Upside Potential: 31%
Number of Hedge Fund Holders: 6
Rumble Inc. (NASDAQ:RUM) operates video-sharing platforms, offering a space for content creators to upload, share, and monetize their videos. Maxim Group analyst initiated coverage on the company’s shares, setting a price target of $20 with a Buy rating. As per the analyst Tom Forte, Rumble Inc. (NASDAQ:RUM) has established itself as a strong contender in the video space, thanks to solid user growth. Notably, the company saw average global monthly active users of 67 million in Q3 2024 as compared to 53 million in Q2 2024. Therefore, this marks the 11th consecutive quarter above 40 million average global MAUs on the platform.
Analyst Tom Forte believes that Rumble Inc. (NASDAQ:RUM)’s cloud-computing capabilities might act as an enterprise alternative to big tech. Furthermore, he added that the market has been underestimating the company’s potential to monetize its audience and, over time, establish a sound cloud computing business. Notably, the company is expected to achieve a positive FCF by 2026. There is enough capital to finance operations and growth going forward, says Forte.
Rumble Inc. (NASDAQ:RUM)’s honest commitment to offering a transparent, unbiased space is the main reason for the growth of the platform. The company has also entered into a definitive agreement for a strategic investment of $775 million from Tether. It would be using $250 million of the proceeds to aid its growth initiatives.
9) BridgeBio Pharma, Inc. (NASDAQ:BBIO)
Market Cap as of 27th January: $6.85 billion
Return Over 6 Months: ~38.2%
Average Upside Potential: 32.1%
Number of Hedge Fund Holders: 46
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is a commercial-stage biopharmaceutical company, that discovers, creates, tests, and delivers transformative medicines to help patients suffering from genetic diseases and cancers. BofA upped the company’s price target to $45 from $42, maintaining a “Buy” rating after BridgeBio Pharma, Inc. (NASDAQ:BBIO) announced that the FDA has approved its stabilizer acoramidis as Attruby for ATTR-CM. The growth in its stock price was aided by the strong commercial uptake. The company noted the associated initial commercial momentum, with 430 prescriptions written by 248 unique physicians.
On November 22, 2024, the U.S. Food and Drug Administration (FDA) approved Attruby (acoramidis). To provide a brief context, Attruby treats cardiomyopathy, in which abnormal protein builds up on the heart muscle, leading to problems. Mizuho Securities analyst Salim Syed maintained a bullish stance on BridgeBio Pharma, Inc. (NASDAQ:BBIO)’s stock, providing a “Buy” rating. As per the analyst, the current market consensus for Attruby’s 2025 sales remains underestimated. The sales are expected to increase as and when the drug captures new and switch patients.
Notably, BridgeBio Pharma, Inc. (NASDAQ:BBIO) has also announced that the Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion recommending marketing authorization in the European Union (EU) for acoramidis for the treatment of wild-type or variant transthyretin amyloidosis in adult patients with cardiomyopathy (ATTR-CM).
8) Summit Therapeutics Inc. (NASDAQ:SMMT)
Market Cap as of 27th January: $17.3 billion
Return Over Past 6 Months: ~118.1%
Average Upside Potential: ~33.9%
Number of Hedge Fund Holders: 21
Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical company, focusing on the discovery, development, and commercialization of patient, physician, caregiver, and societal-friendly medicinal therapies. Analyst Mitchell Kapoor of H.C. Wainwright reiterated a “Buy” rating on the company’s shares, retaining the price objective of $44.00. The analyst’s rating is backed by several factors revolving around the strong outlook of Summit Therapeutics Inc. (NASDAQ:SMMT)’s key drug candidate, ivonescimab.
The analyst noted that the drug’s efficacy and safety profile are expected to place it favorably as compared to existing treatments in non-small cell lung cancer (NSCLC), primarily in patients who have not responded to EGFR tyrosine kinase inhibitors. Furthermore, Summit Therapeutics Inc. (NASDAQ:SMMT)’s management also emphasized the comprehensive advantages of ivonescimab, highlighting that even if the overall survival hazard ratio doesn’t outpace competitors significantly, the lower toxicity can offer a meaningful benefit. Also, the recent financing in September 2024 provided Summit Therapeutics Inc. (NASDAQ:SMMT) $235 million, strengthening its cash balance to extend the cash runway.
The company’s cash balance at quarter-end aggregated to $487 million, which provides Summit Therapeutics Inc. (NASDAQ:SMMT) enough cash to continue to invest in the ivonescimab trials planned to be expanded and initiated in 2025. Bronte Capital, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“The short book hurt us in many ways. Several deeply junky stocks went up – and one – Summit Therapeutics Inc. (NASDAQ:SMMT) – in which we may have made a mistake – stood out above all. Even excluding Summit, our short book would have faced challenges in September, but this position exacerbated the difficulties.
A little background is necessary. Summit is (or was) a small drug company that we scored as having some suspect associations and hence a short candidate. Our database of bad people in financial markets is very broad. Summit was not such a stock. Our short signals were triggered light amber, not bright red. This meant the company required a bit more analysis…” (Click here to read the full text)
7) Semtech Corporation (NASDAQ:SMTC)
Market Cap as of 27th January: $4.54 billion
Return Over Past 6 Months: ~84.0%
Average Upside Potential: ~34.3%
Number of Hedge Fund Holders: 32
Semtech Corporation (NASDAQ:SMTC) is engaged in designing, developing, manufacturing, and marketing analog and mixed-signal semiconductors and advanced algorithms. Roth MKM analyst Scott Searle upped the company’s price target to $75 from $70, keeping a “Buy” rating. As per the analyst, Semtech Corporation (NASDAQ:SMTC)’s $661 million secondary offering offers significant financial flexibility by decreasing interest and leverage ratios while being accretive immediately. Notably, with its management continuing to monetize non-strategic assets, the research firm believes that components of the company’s Sierra Wireless can be sold in H1 2025, further reducing its net debt and allowing it to focus and transform.
Elsewhere, Needham increased the price target of Semtech Corporation (NASDAQ:SMTC) to $74 from $70, maintaining a “Buy” rating. As per the analyst, the company is focused on divestiture and portfolio optimization strategy, and a healthier balance sheet can significantly enhance its negotiating position. Furthermore, Semtech Corporation (NASDAQ:SMTC)’s management is expected to now focus on accelerating revenue growth, expanding margins, and optimizing product portfolio.
Data centers need high-speed and reliable connectivity to support increasing data traffic, mainly considering the rise of AI, cloud computing, and 5G. The company’s Signal Integrity Products allow high-speed data communication, that are important for modern data center architectures. Heartland Advisors, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Technology. Semtech Corporation (NASDAQ:SMTC), which manufactures optical components and technology solutions used in data centers and IoT (Internet of Things) systems, is a position we initiated in the third quarter and increased our exposure to in the fourth.
Semtech, one of our Strategy’s best performers in the past quarter, is an example of a stock we’ve owned in the past and recently returned to as circumstances improved. We last held SMTC a few years ago, before it announced its acquisition of Sierra Wireless. The company levered up in late 2022 to make the purchase. Soon after the deal was completed, the stock sold off and the existing management team was replaced. The new management team is now seeking to divest some of Sierra Wireless’ assets to de-lever and regain focus on Semtech’s core business.
We’ve kept the company on our radar since the acquisition. Semtech’s signal integrity business, the company’s crown jewel franchise, is a backbone component of many data centers. With growing demand for data centers in the AI boom, we believe this could be a real opportunity for the company. New management has been clear they intend to divest non-core business lines to reduce leverage, which should unlock additional value. Yet the stock currently trades at a 20-25% discount to its peers based on EBITDA.”
6) Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Market Cap as of 27th January: $9.84 billion
Return Over Past 6 Months: ~103.1%
Average Upside Potential: ~34.8%
Number of Hedge Fund Holders: 30
Credo Technology Group Holding Ltd (NASDAQ:CRDO) offers various high-speed connectivity solutions for optical and electrical Ethernet applications. Mizuho analyst Vijay Rakesh upped the price objective on the company’s shares to $85 from $70, keeping an “Outperform” rating as part of the 2025 semiconductors and automotive technologies outlook. The analyst remains optimistic for the PHLX Semiconductor Sector in 2025. Furthermore, the firm anticipates continued strength in AI, custom silicon, and connectivity.
The increased adoption of AI clusters has been a key driver of Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s recent success. Its solutions focus on enabling power-efficient AI clusters, a key factor as data centers plan to optimize energy consumption while scaling AI capabilities. The broader AI infrastructure market continues to witness significant growth, thanks to the increased adoption of AI technologies throughout industries. Credo Technology Group Holding Ltd (NASDAQ:CRDO)’s focus on power-efficient solutions for AI clusters remains in line with the broad-based trends, with data centers seeking to balance performance with energy consumption.
As AI workloads grow in complexity and scale, there are expectations of increased demand for high-speed and efficient connectivity solutions. TimesSquare Capital Management, an equity investment management company, released a Q2 2024 investor letter. Here is what the fund said:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that closely tie to increasing shares of corporate IT budgets. Credo Technology Group Holding Ltd (NASDAQ:CRDO), a supplier of high-speed connectivity solutions, surged ahead by 51%. The company reported inline April quarter results and management’s July quarter guidance met expectations; AI spending is a growth driver.”
5) Bitdeer Technologies Group (NASDAQ:BTDR)
Market Cap as of 27th January: $2.75 billion
Return Over Past 6 Months: ~61.8%
Average Upside Potential: ~35.1%
Number of Hedge Fund Holders: 19
Bitdeer Technologies Group (NASDAQ:BTDR) is a leading technology company for blockchain and high-performance computing. Needham analyst John Todaro maintained a bullish stance on the company’s stock, offering a “Buy” rating and a price target of $22 on January 8. John Todaro’s rating stems from a combination of factors associated with the company’s prospects. The analyst remains optimistic about Bitdeer Technologies Group (NASDAQ:BTDR)’s machine manufacturing sales, resulting in a revision of 2025 estimates.
Furthermore, the analyst highlighted the competitive advantages coming from the challenges witnessed by its competitor, Bitmain, and the new machine architecture by Bitdeer Technologies Group (NASDAQ:BTDR). As per the analyst, the innovation can lead to the most efficient application-specific integrated circuits (ASICs) in the market by H2 2025, which boosts confidence in its high-performance computing opportunities. The potential expansion into HPC hosting can result in a significant valuation lift for Bitdeer Technologies Group (NASDAQ:BTDR).
Notably, the long-term contracts and high margins related to HPC hosting can result in a stable revenue stream. Therefore, Bitdeer Technologies Group (NASDAQ:BTDR)’s strategic move into AI and HPC markets offers strong growth potential. The increased global demand for AI and HPC services is fueled by advancements in ML, data analytics, and scientific research, and the company is well-placed to capture a share of this evolving market.
4) Vertiv Holdings Co (NYSE:VRT)
Market Cap as of 27th January: $41.6 billion
Return Over Past 6 Months: ~31.5%
Average Upside Potential: 42.3%
Number of Hedge Fund Holders: 91
Vertiv Holdings Co (NYSE:VRT) is engaged in designing, manufacturing, and servicing critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. TD Cowen upped its price target on the company’s shares from $115 to $141, offering a “Buy” rating on the stock. The revision was backed by Vertiv Holdings Co (NYSE:VRT)’s promising long-term growth prospects, with the firm highlighting the company’s upside potential throughout 2025, courtesy of the continued momentum of the AI revolution.
Elsewhere, Morgan Stanley initiated coverage on the shares of Vertiv Holdings Co (NYSE:VRT), providing an “Overweight” rating, and setting a price target of $150.00. The rating was backed by the company’s significant exposure to a high-growth sector within US industrials and its position to capture a significant share of customer spending. Morgan Stanley believes that the company’s growth was not in line with the broader data center capex and construction spending over the previous two years. Therefore, it provides an opportunity for Vertiv Holdings Co (NYSE:VRT) to maintain pace over the coming years.
Furthermore, the analysts opine that the market continues to underestimate the critical nature of the company’s products. This is because data centers are not completed without the power and thermal solutions that Vertiv Holdings Co (NYSE:VRT) offers. Baron Funds, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“Vertiv Holdings Co (NYSE:VRT) is a leader in data center equipment, with significant share in both power and cooling applications. The stock rebounded off recent weakness, as investors gained confidence that a massive build out of AI data centers globally was on the horizon. Vertiv’s strong relationship with chip manufacturers and involvement in the necessary technology roadmap for solutions as the energy density of server racks increases were catalysts. Vertiv’s orders were up 57% year-over-year in the second quarter, backlog was $7 billion, a record, and 2024 operating profit margin and EPS guidance was raised.”
3) Astera Labs, Inc. (NASDAQ:ALAB)
Market Cap as of 27th January: $14.2 billion
Return Over Past 6 Months: ~80.7%
Average Upside Potential: ~42.6%
Number of Hedge Fund Holders: 39
Astera Labs, Inc. (NASDAQ:ALAB) is engaged in designing, manufacturing, and selling semiconductor-based connectivity solutions for cloud and AI infrastructure. Northland analysts upped their rating on the company’s shares, upgrading it from “Market Perform” to “Outperform,” setting a new price target of $120.00. The analysts believe that despite potential dips in demand related to AI training, the need for inference is expected to mitigate any such declines. They believe that the demand in this segment will remain strong, mainly as major technology companies such as Amazon, Google, Meta, and Microsoft are anticipated to maintain their respective capex levels.
The broader semiconductor industry continues to experience a significant shift, mainly in the graphics processing unit (GPU) segment. Astera Labs, Inc. (NASDAQ:ALAB) has placed itself to benefit from this trend, highlighting that it is capturing more value per unit. This is expected to translate into higher revenue and improved margins. Its ability to innovate and adapt to market needs is expected to help it maintain its growth trajectory. With continued growth in the semiconductor industry, Astera Labs, Inc. (NASDAQ:ALAB)’s focus on data-intensive applications positions it well to capitalize on emerging opportunities in cloud computing, AI, and other high-performance computing sectors.
Fred Alger Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Astera Labs, Inc. (NASDAQ:ALAB) is a semiconductor company specializing in connectivity solutions for data-centric systems, including cloud computing, artificial intelligence, and machine learning. Its products optimize data flow and performance in servers, GPUs, and AI accelerators, addressing bottlenecks in high-performance computing environments. The company’s Intelligent Connectivity Platform (ICP) integrates advanced semiconductor hardware with the proprietary COSMOS software suite, delivering customizable and cost-effective solutions. Astera’s Platform-Specific Standard Products (PSSP) enhance flexibility with features such as predictive analytics, monitoring, and troubleshooting. Backed by strong relationships with leading cloud and AI providers, we believe Astera is well positioned in rapidly growing markets, demonstrating high profitability and industry-leading gross margins. During the quarter, shares contributed to performance after reporting better-than-expected fiscal third-quarter results, with revenues and gross margins exceeding analyst estimates. Specifically, revenue growth spanned all four product segments, led by accelerated custom silicon sales and robust GPU demand. Management also raised fiscal fourth-quarter guidance, citing expanding product ramps and a broader customer base.”
2) Telephone and Data Systems, Inc. (NYSE:TDS)
Market Cap as of 27th January: $4.10 billion
Return Over Past 6 Months: ~70.2%
Average Upside Potential: ~46.3%
Number of Hedge Fund Holders: 31
Telephone and Data Systems, Inc. (NYSE:TDS) is a telecommunications company, providing communications services in the US. The company operates via 2 segments: UScellular and TDS Telecom. In a bid to focus its resources appropriately across the enterprise, the company continues to focus on strategically optimizing its portfolio. Therefore, United States Cellular Corporation agreed with Verizon Communications Inc. to sell a portion of the company’s retained spectrum licenses for a consideration totaling $1.0 billion. Furthermore, UScellular entered into agreements with 2 other mobile network operators related to selling other selected spectrum licenses.
UScellular continues to balance subscriber growth with financial discipline. Telephone and Data Systems, Inc. (NYSE:TDS)’s stock has seen a whopping increase of ~70.2% in just 6 months. Notably, healthy growth in residential broadband connections, strong traction in a fixed wireless portfolio, and tower rental business continue to act as critical growth drivers. Furthermore, Telephone and Data Systems, Inc. (NYSE:TDS)’s management has maintained its focus on cost optimization.
Telephone and Data Systems, Inc. (NYSE:TDS) continues to extend its fiber networks throughout the total service addresses. In Q3 2024, TDS Telecom reached a milestone of 50% of service addresses that are served with fiber. TDS Telecom has been implementing its ongoing fiber expansion strategy. Elsewhere, the U.S. Cellular segment has been advancing its network infrastructure, placing a strong focus on mid-band deployment to improve speed and capacity.
1) MicroStrategy Incorporated (NASDAQ:MSTR)
Market Cap as of 27th January: $68.2 billion
Return Over Past 6 Months: ~100.4%
Average Upside Potential: ~62.9%
Number of Hedge Fund Holders: 25
MicroStrategy Incorporated (NASDAQ:MSTR) offers AI-powered enterprise analytics software and services. Its unique approach to Bitcoin investment resulted in a distinct market position. Notably, increased institutional adoption of Bitcoin is expected to significantly benefit MicroStrategy Incorporated (NASDAQ:MSTR) in several ways. With more and more institutional investors entering the cryptocurrency market, demand for Bitcoin is projected to increase, resulting in price appreciation. Given the company’s Bitcoin holdings, any appreciation in Bitcoin’s value will directly increase the company’s asset value.
Also, institutional adoption can result in the development of more sophisticated financial products and services associated with Bitcoin, which is expected to offer MicroStrategy Incorporated (NASDAQ:MSTR) some additional ways to leverage its holdings or generate income. The company’s focus remains on increasing the value generated to its shareholders by leveraging the digital transformation of capital. MicroStrategy Incorporated (NASDAQ:MSTR) announced a strategic goal of raising $42 billion of capital over the upcoming 3 years, comprised of $21 billion of equity and $21 billion of fixed income securities, which it refers to as its “21/21 Plan.” Its proven track record of using intelligent leverage continues to serve as a base to execute its strategic 3-year 21/21 Plan.
Greenlight Capital, an investment management firm, released its Q4 2024 investor letter. Here is what the firm said:
“There is an open debate as to whether Bitcoin will at some point enter the mainstream as an official currency. In fact, there is a bill before Congress for the U.S. to establish a “Strategic Bitcoin Reserve” and buy one million Bitcoins over five years. The bill’s purpose appears to be the use of public funds to ramp up the price of Bitcoin, thereby enhancing the wealth of existing Bitcoin holders. This seems a dubious use of taxpayer funds, but the new administration has a lot of Bitcoin-owning supporters, so it might happen. More likely, cooler heads will decide that the government should not borrow another trillion dollars in the bond market to speculate in Bitcoin and that there is, in fact, nothing strategic about doing so.
One of the biggest owners of Bitcoin is MicroStrategy Incorporated (NASDAQ:MSTR). While MSTR owns a small software business, its principal pursuit is buying Bitcoin. In practice, MSTR is an investment company that buys and holds Bitcoin.2 MSTR trades at a large premium to the value of the underlying Bitcoin it holds. The idea is to raise money from new investors at a premium and use the proceeds to buy more Bitcoin. Since the Bitcoin that MSTR buys costs less than the Bitcoin-implied value of MSTR’s stock, the new investment is dilutive to new investors but accretive to existing investors. MSTR’s promoters have labeled the return to existing investors created by this scheme the “Bitcoin yield”. As Bitcoin itself yields nothing, the Bitcoin yield is simply a measure of the Ponzi finance’s effectiveness. Lately, it has been pretty effective.”
While we acknowledge the potential of MSTR as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than MSTR 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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