The blockchain-powered cryptocurrency, Bitcoin, has expanded at a rapid pace over the past month, setting the tone for a year-end rally. Bitcoin’s price crossed $100,000 twice in the past week, thanks to an upbeat investor sentiment, following Donald Trump’s win in the U.S. Presidential election in early November.
Bitcoin is now on track to reach new heights in 2025, given the optimistic outlook under Trump’s regime. Alongside Bitcoin, other leading cryptocurrencies have experienced substantial gains. Ethereum (ETH) has seen a 119.62% increase, while Dogecoin (DOGE) has risen 103.38% over the past year, highlighting the ongoing crypto boom.
A key factor contributing to this boom is the approval of Bitcoin exchange-traded funds (ETFs) in January 2024, which has further bolstered investor confidence, providing a more accessible avenue for both institutional and retail investors to participate in the cryptocurrency market.
However, increasing regulatory concerns over crypto transactions and crypto mining are a headwind for cryptos. While these offer the allure of huge short-term profits, it comes with extreme volatility and risk.
As the market continues to fluctuate, investors might find it more prudent to seek alternatives that offer more stability and growth potential. NVIDIA NVDA, Vertiv VRT, Semtech SMTC and AppLovin APP stand out as strong contenders for outperforming in 2025.
Stock Picks
The price of Bitcoin has surged 124.3% in the past 12 months, while NVDA, SMTC, VRT and APP have appreciated 172.5%, 202.6%, 144.9% and 641.3%, respectively.
These companies are poised to benefit from solid fundamentals and growth opportunities, offering a more reliable investment option compared with the unpredictability of cryptocurrencies.
The aforementioned stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Per Zacks’ proprietary methodology, stocks with such a favorable combination offer solid investment opportunities.
NVIDIA is witnessing strong momentum of its GPUs in the cryptocurrency space. NVDA’s GPUs are gaining solid momentum in generative AI and large language model-powered applications, which hold growth promises.
This apart, solid hyperscale demand and a strong uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds. NVIDIA’s collaborations with Mercedes-Benz and Audi are expected to advance its presence in autonomous vehicles and other automotive electronics space.
Currently, NVDA carries a Zacks Rank #2 and has a Growth Score of B. The Zacks Consensus Estimate for NVIDIA’s fiscal 2025 earnings is pegged at $2.94 per share, which has increased 3.5% over the past 30 days. The figure suggests a year-over-year increase of 126.95%.
Vertiv is benefiting from the growing demand for data center infrastructure, driven by the digital and AI revolutions. The company’s leadership in liquid cooling, strong global scale and technological differentiation position it well to capitalize on the expanding data center market.
Additionally, its partnership with NVIDIA enhances its ability to support the evolving needs of high-density computing and AI advancements.
Currently, VRT sports a Zacks Rank #1 and has a Growth Score of B. The Zacks Consensus Estimate for Vertiv’s fiscal 2025 earnings is pegged at $3.58 per share, which has increased 10% over the past 30 days. The figure indicates a year-over-year increase of 33.16%.
Semtech is a major player in the semiconductor sector, specializing in analog and mixed-signal devices that are crucial for powering a wide range of applications, from IoT devices to data communications.
SMTC is benefiting from strong growth in its data center and infrastructure markets, driven by increasing demand for its CopperEdge and Tri-Edge solutions.
The company’s operational excellence, including on-time delivery and superior quality, enhances customer supply chain resiliency. Additionally, SMTC’s focus on AI-driven product investments and operational improvements positions it for long-term growth.
Currently, SMTC carries a Zacks Rank #2 and has a Growth Score of A. The consensus mark for the company’s fiscal 2025 earnings is pegged at 77 cents per share, which has increased 15% over the past 30 days. The figure indicates a year-over-year increase of 450%.
AppLovin is benefiting from the strong growth of its Software Platform, fueled by advancements in AXON technology and the scalability of its core advertising business.
The company’s focus on mobile gaming advertisers and the promising results of its e-commerce pilot position it for significant future growth. Strategic resource reallocation and a self-service platform launch are set to further expand opportunities in 2025.
Currently, APP flaunts a Zacks Rank #1 and has a Growth Score of A. The Zacks Consensus Estimate for the company’s fiscal 2025 earnings is pegged at $5.89, which has increased 2.43% over the past 30 days. The figure suggests a year-over-year increase of 45.3%.
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