Prediction: These 3 stocks will outperform NVIDIA in 2025

Unless you’ve been living under a rock, you’ve heard of Nvidia (NASDAQ: NVDA ) success story. All investors want a piece of this big deal, and those who missed out are now trying to get Nvidia’s share. In the stock market, investors are drawn to tech stocks because of the massive rally we saw earlier in the year. The appeal of tech stocks goes beyond artificial intelligence, and while they dominate the industry, there are a few other stocks worth keeping on your radar.

Key points about this article

• While the tech sector has seen growth this year, there are other stocks besides Nvidia worth betting on.
• Despite trading at a premium, these stocks have upside potential and could outperform Nvidia next year.
• If you want to learn more about the most important growth actions, grab a free copy of our paper The “Next NVIDIA” report.. The carefully prepared report presents a stock that has 10x potential.

They are loyal in their respective industries and massive advantages can be seen in the long run. These stocks have already proven their worth and could overtake industry darling Nvidia next year. These companies are also using artificial intelligence to improve business efficiency and grow. Let’s dive into the three stocks to buy instead of Nvidia.

Microsoft (MSFT)

technical dinosaur Microsoft (NASDAQ: MSFT) it is more valued than Nvidia currently and is the second most valuable company in the world. A global name, Microsoft has a diverse range of products and services that help meet the needs of organizations. The company invested $10 billion in OpenAI last year. He then created an AI assistant known as Co-pilot, which is already being adopted by users.

Trading at $408, the stock is up 10% year-to-date and 22% over the past 12 months. It has a modest dividend yield of 0.73% and is an undervalued stock to add to your portfolio amid the recent tech selloff. I think Microsoft is a low-risk, high-reward stock to own.

Microsoft is also making big moves with its cloud computing segment. It has 25% market share in this segment. Last quarter, Azure and cloud services revenue grew 29% year-over-year, while LinkedIn revenue grew 10% year-over-year. In the quarter, the company reported a 15% year-over-year increase in total revenue to $64.7 billion, and EPS came in at $2.95.

Management noted that Azure AI cannot meet demand while Azure’s customer base grows at a fast pace. Its Azure AI customers are over 60,000, showing a customer growth rate of 60% annually. The company plans to increase spending next year to meet strong demand.

The recent IT outage highlighted how important Microsoft is in this world. A highly diversified business, Microsoft has seen growth across all segments, and this shows that a temporary drop in revenue in one segment does not affect the entire business.

Eli Lilly (LLY)

Pharmaceutical company Eli Lilly (NYSE: LLY ) is growing at a great paceled by weight loss drugs. The the global obesity market has grown sevenfold in the past three years and is expected to grow at a 27% CAGR rate by 2028. This means that the demand for obesity drugs will continue to grow and Eli Lilly will be on the rise. in a position to make the most of it.

Trading at $912, LLY shares are up 54% YTD and 15% in the past month. It is getting closer to its 52-week high of $972 and is a stock split candidate. As one of the leading pharmaceutical companies, Eli Lilly enjoys billions in revenue from its top two drugs – Zepbound and Mounjaro. The demand is so high for these products that Eli Lilly needs to expand its manufacturing facilities.

Eli Lilly recently launched a new version of Zepbound in single-dose vials that will be distributed directly through the company to patients with a prescription. It has a lower price than the company’s other drugs. As we’ve seen, even with higher-priced products, it’s become difficult for Eli Lilly to meet growing demand, and this move could boost sales.

In the second trimesterposted 36% year-over-year revenue growth and 68% EPS growth to $3.28. Zepbound generated $1.24 billion in revenue and Mounjaro generated $3.09 billion. After the successful results, management raised full-year guidance by $3 billion to $45.4 billion to $46.6 billion.

Eli Lilly’s rally isn’t over yet, and there is much more to come. This stock can generate solid returns and outperform Nvidia next year.

MercadoLibre (MELI)

MercadoLibre (NASDAQ:MELI) it is in Latin America what Amazon (NASDAQ: AMZN ) is in the United States. The Latin American fintech and e-commerce company has seen steady growth, and the stock is at an all-time high. Trading at $2,038, MELI shares are up 33% YTD and 42% over the past 12 months. Stocks are the ideal candidate for a stock split.

The company has achieved tremendous success because of its presence in a difficult environment. It has minimal competition and operates in one region where is it high inflation and political instability. People in the area used cash for transactions and that’s when Mercado Pago was launched. It allowed people to do digital transactions with ease. This turned into a successful fintech business that attracted more customers. Fintech was non-existent in the area when Mercado Pago launched and this benefited business significant.

In the second trimesterrevenue rose 42% year-over-year to $5.07 billion, and EPS reached $10.48, up from $5.16 per share in the same quarter last year. The e-commerce segment grew by 53.4%, while the fintech segment grew by 27.5% compared to last year.

I think MercadoLibre is already included a very strong one position and could continue to expand from here. The company has strong fundamentals and given its strength, it could generate more value than Nvidia. Despite all the success it has achieved, the company has the potential to continue growing and this makes it a stock to buy and hold for the long term.

Jefferies has a buy rating on the stock with a $2,250 price target.

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