Palantir (PLTR) - Palantir stock price increased by 386.67% from $16.58 to $80.69 since the beginning of 2024 [2] - The company's trailing PE ratio is 362x and forward PE ratio is 154x, indicating high growth valuation [2] - Institutional investors are increasingly interested in Palantir stock, and concerns about overreliance on government contracts have diminished [3] - Palantir is expected to enter the CPU market in 2025 with a TAM of $35 billion, diversifying revenue streams [4] Nvidia (NVDA) - Nvidia stock gained 189.96% in 2024, trading at $139.67 per share [6] - The company is well-positioned to benefit from the AI boom, with major tech companies planning high AI spending in 2025 [14][22] - Nvidia's forward PE ratio is 32, significantly lower than Palantir's [19] - Dips in stock price, such as after Q3 FY2025 earnings, may provide attractive entry points for long-term investors [23] Alphabet (GOOGL) - Alphabet stock returned 40.86% YTD, trading at $194.63 [12] - The company is highly diversified, with ventures in self-driving (Waymo), biotech (Calico), and quantum computing [8] - Google's core businesses (advertising, cloud services, software tools) are expected to see accelerating revenues from AI and automation [12] - Alphabet has a dominant footprint in the digital realm, with internet usage often synonymous with Google [15] Apple (AAPL) - Apple stock provided a 37.51% return in 2024, trading at $255.27 [9] - The company is the largest publicly traded company globally and is a contender to reach a $4 trillion market cap [21] - Apple maintains a diversified ecosystem and entered the AI race with the release of Apple Intelligence in late October [20] - Warren Buffett maintains a sizable position in Apple, though he has reduced his stake recently [17] Big Tech Industry - Big tech has dominated the investing landscape since the 2008 financial crisis, with significant growth post the dot com crash [11] - The influence of big tech on society is stronger than ever, driven by the AI revolution [5] - Several major tech companies are gearing up for another year of impressive returns, despite already high valuations [13]
Top 3 big tech stocks to buy in 2025