We recently published a list of 10 Best Stocks to Buy for High Returns in 2025. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other 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.
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).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
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 (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 (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.”
Overall, NVDA ranks 4th on our list of best stocks to buy for high returns in 2025. While we acknowledge the potential of NVDA 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.