Two Notable Nasdaq Shares to Acquire before Their Dramatic Surge in 2025
The Nasdaq Composite index had an impressive 2024, posting gains of nearly 31%. This strong performance was no surprise given the tech-heavy nature of the index and the growth reported by tech companies in previous years, fueled by catalysts like artificial intelligence (AI). The index's growth in 2024 came on the heels of a 43% jump in 2023, a positive sign for tech investors.
Historically, the Nasdaq Composite has seen robust growth after a year with over 30% gains. The fact that the U.S. economy is experiencing strong growth, controlled inflation, and rising consumer spending due to increased real income could set the stage for another strong year for tech stocks in 2025.
One standout NASDAQ stock for 2025 is Marvell Technology (MRVL). The company's stock soared by 83% in 2024, mainly due to its role in the AI chip market. Marvell makes custom application-specific integrated circuits (ASICs) for data centers, which are now being used by major cloud providers for AI model training and inference. This shift allows them to reduce their reliance on Nvidia and lower the cost of developing AI models.
Amazon, for instance, uses Marvell's custom AI processor, the Trainium 2, which delivers more computing power than Nvidia's chips while allowing customers to train certain models at 40% lower cost. Amazon is not the only customer for Marvell's AI chips, and the company anticipates $1.5 billion in AI chip sales during the current fiscal year, followed by $2.5 billion in the next.
Marvell is also anticipating a massive growth opportunity in the data center market, which is projected to reach $75 billion by 2028, from $21 billion in 2023. With strong earnings growth forecasted for 2025, Marvell's stock could enjoy further gains in this year, while its significant market share in AI chips has the potential to sustain its rally in the long run.
Another NASDAQ stock worth considering for 2025 is Meta Platforms (META). Meta delivered impressive gains of 65% in 2024, benefitting from the growth in digital ad spending. The digital ad market is expected to grow 8% in 2025, and Meta's impressive user base position it well to capture a larger share of ad spend.
Meta Platforms reported a 22% revenue increase in the first nine months of 2024 and issued Q4 revenue guidance of $46.5 billion. Analysts project Meta's top line to grow at double-digit rates in 2025 and 2026, surpassing the growth of the digital ad market. Meta's AI tools have also played a significant role in improving ad revenue by enabling more precise audience targeting and higher ad returns.
Meta looks like a solid NASDAQ stock for 2025 and the long term. With a current valuation of 28 times trailing earnings and 24 times forward earnings, it presents an attractive buying opportunity. As digital ad spending grows, the company's strong user base and robust AI capabilities make it a likely winner for the year and in the long run.
- With the Nasdaq Composite's strong performance in 2024, investors might be interested in channeling their money into technologies that have shown potential for sustainable growth, such as artificial intelligence (AI).
- As the tech sector continues to thrive, financial institutions and individual investors alike are closely monitoring the performance of key players like Marvell Technology (MRVL) and Meta Platforms (META), with an eye towards potential adoption of their innovations in 2025.
- Marvell Technology's impressive growth in the AI chip market in 2024, driven by their cost-effective solutions, could attract significant investment in the coming years, especially as companies look to lower the cost of developing AI models and decrease their reliance on other providers.
- Meta Platforms, recognized for its AI tools and user base, has the potential to maintain its momentum in 2025 and beyond, given the expected growth in digital ad spending, strong revenue performance, and the company's continuous advancements in AI technologies, making it an attractive investment opportunity for those looking to capitalize on the future of finance and technology.
