We recently published a list of 15 Tech Stocks with Best Earnings Growth in 2025. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other tech stocks with best earnings growth in 2025.
Earnings growth plays a vital role in global markets and equity investments, directly influencing stock prices and overall market performance. Companies with steady earnings growth are often considered more stable and reliable, attracting investor confidence and strengthening market sentiment. According to FactSet, the S&P 500 is expected to report a 9.5% earnings growth for 2024, surpassing the 10-year average annual growth rate.
Looking ahead, 2025 is projected to outperform 2024 in terms of earnings expansion. In a January 14, 2025 interview on Bloomberg’s ‘Open Interest’, Racquel Oden, HSBC’s U.S. Head of International Wealth and Private Banking, forecasted a 14.8% rise in corporate earnings for the year. She expressed optimism about broader market gains, particularly among the “forgotten 493” in the S&P 500—stocks beyond the high-performing “Magnificent 7.” Oden highlighted that technological advancements will enhance productivity, ultimately driving profitability and economic growth.
Similarly, in another Bloomberg interview in early January, Stephanie Guild, Head of Investment Strategy at Robinhood, discussed the challenges posed by elevated yields on valuations. She emphasized that equities are primarily influenced by three factors: market sentiment, valuation, and earnings growth. While high yields create hurdles, the key question remains whether corporate earnings can outpace the pressure from persistent interest rates. She also pointed out that the direction of earnings growth will largely depend on policies introduced by the new administration. In the short term, interest rates will steer market movements, but over the long run, earnings growth will be the main driver. Guild also highlighted mid-cap stocks as an attractive investment due to their favorable valuations.
Further reinforcing this outlook, FactSet’s February 14 report revealed that eight sectors have reported year-over-year revenue growth for Q4, with the IT sector leading the gains. Conversely, three sectors, led by Industrials and Materials, have shown a decline in revenue. This trend suggests a solid close to 2024 earnings. For 2025, FactSet analysts estimate a 12.7% year-over-year earnings growth.
Our Methodology
To determine the 15 technology stocks with the best earnings growth in 2025, we began by analyzing all U.S.-listed tech companies with a market capitalization of at least $2 billion. To exclude unprofitable companies, we considered only companies that reported a positive net profit margin over the trailing twelve months period. From this refined list, we further narrowed our selection to those expected to achieve greater than 25% EPS growth this year. Regarding next financial year (FY), for firms with more than six months remaining in their fiscal year, we used FY 2025 earnings estimates, while for those with six months or less left, we relied on FY 2026 estimates. Additionally, we considered only stocks with a projected upside of more than 10%. Finally, we ranked the companies in ascending order based on their expected earnings growth for next financial year (FY). We also included data on hedge fund holdings in these companies as of Q4 2024 to provide further insight into investor interest.
Note: All pricing data is as of market close on February 21.
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A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Expected EPS Growth Next FY: 50%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system on a chip units (SoCs), and AI hardware and software. Over the years, the company has expanded its offerings from gaming GPUs to include data center solutions, AI computing, and deep learning technologies. The company’s GPUs are widely used in data centers for high-performance computing, AI training, and inference, making it a critical player in the data center ecosystem. Its products are essential for powering advanced applications in AI, machine learning, and data analytics. NVIDIA Corporation (NASDAQ:NVDA) boasts the best margin profile among the companies in this list.
Without a doubt, NVIDIA Corporation (NASDAQ:NVDA) experienced substantial gains from the AI-driven enthusiasm, as evidenced by its 180% share price increase in 2024. However, in 2025, the shares have been sluggish and have not delivered any returns as of the close on February 21. The company is set to report its Q4 2024 results on February 26, and it is expected to be a highly anticipated event. Analysts have expressed concerns about the significant investments made by mega-cap companies in AI and related technologies and the extent of earnings benefits from these investments.
A few days before the results, on February 21, Deutsche Bank released a cautious report on the company. While the analyst anticipates a strong set of quarterly results, he is not very optimistic about the guidance for the next quarter, which he believes offers limited potential upside from current levels. The ongoing complexities of the Blackwell ramp may restrict the guidance from exceeding the current consensus. The analyst also questions the sustainability of high demand levels in the coming years.
Overall, NVDA ranks 7th on our list of tech stocks with best earnings growth in 2025. While we acknowledge the potential of NVDA as an investment, 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.
