Is Uber Technologies, Inc. (UBER) Hottest Mega-Cap Stock of 2025?

We recently published a list of 10 Hottest Mega-Cap Stocks of 2025. In this article, we are going to take a look at where Uber Technologies, Inc. (NYSE:UBER) stands against other hottest mega-cap stocks of 2025.

In 2024, companies poured money into Artificial Intelligence infrastructure in a bid to outpace each other in the AI race. The communication services and information technology sectors led the the large-cap stocks in terms of returns. AI-driven hype was so significant that for the first time since 1998, the S&P’s large-cap index registered two consecutive years of 20%+ gains.

2025 may well be the year of reckoning for AI. Some analysts have questioned the massive AI spending throughout the last year. Their concerns and predictions were dealt a reality check though when Bill Gates’ tech giant announced it planned to spend $80 billion on AI in fiscal 2025. Consequently, semiconductor stocks rallied, reminding everyone that the AI rally wasn’t over by any means.

Not surprisingly, the list is dominated by chipmakers, who we believe will be critical to the market’s returns this year. To come up with the 10 hottest mega-cap stocks of 2025, we considered stocks with at least $75 billion market capitalization.

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Uber Technologies, Inc. (NYSE:UBER)

Uber Technologies, Inc. (NYSE:UBER) has had a great start to the year so far. First, it was Goldman Sachs that added the company to its U.S. Conviction List. This is a list of stocks that the bank believes have the highest potential of outperforming the index. Goldman Sachs believes the stock can gain over 50% this year, with a price target of $96.

One of the basis for this conviction is the company’s ability to leverage autonomous vehicles. It signed 5 partnerships last year, including with Google’s Waymo and Avride, the Dutch AI infrastructure player that focuses on AI technologies.

The company has also announced a $1.5 billion accelerated share repurchase agreement, part of a $7 billion share repurchase program. The transaction is expected to be completed in the first quarter, which means the stock has potential for a short term rally. In fact, it is already up 12% so far this year.

Overall, UBER ranks 4th on our list of hottest mega-cap stocks of 2025. While we acknowledge the potential of UBER as a leading AI investment, our conviction lies in the belief that some 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 as promising as UBER 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.