Forbesยท2025-09-30 17:55Core Insights - The article highlights the ten strongest mega-cap stocks in 2025, emphasizing their performance based on year-to-date percent change and underlying growth drivers [3][14]. Group 1: Company Performances - Palantir (PLTR) is identified as the strongest performing mega-cap stock, benefiting from a unique platform-based approach that integrates data, analytics, and operational workflows, leading to sustainable recurring revenue growth [3]. - AppLovin (APP) has shown triple-digit earnings growth over the past four quarters, driven by robust mobile-ad demand and strategic investments in user acquisition and monetization services [4]. - General Electric (GE) has experienced a turnaround, focusing on higher-value services and long-term agreements, which increased recurring revenue and improved investor confidence [5]. - Oracle (ORCL) saw its stock rise over 40% following strong earnings, attributed to its pivot towards multi-year cloud services and autonomous database capabilities [6][7]. - Uber (UBER) has expanded beyond ride-hailing, leveraging a multi-pronged growth strategy that includes delivery and logistics, dynamic pricing, and international market recoveries [8]. - RTX (RTX) has benefited from elevated global defense budgets and operational efficiencies, leading to organic growth and strong free cash flow [9]. - Broadcom (AVGO) combines semiconductor products with a growing software portfolio, resulting in steady hardware revenue and high-margin software income [10]. - Nvidia (NVDA) continues to dominate in AI and gaming, with strong demand for its data-center GPUs driven by the adoption of generative AI workloads [11]. - Goldman Sachs (GS) has outperformed peers due to stronger investment banking activity and effective capital management, enhancing profitability [12]. - Philip Morris International (PM) is transitioning towards smoke-free products, with strong demand for its heated tobacco and vaping products driving growth [13]. Group 2: Key Themes - The companies share common themes of leadership in structural growth markets such as AI compute, cloud, aerospace/defense, and mobile monetization [16]. - There is a notable shift towards recurring, higher-margin revenues in software and services, enhancing cash generation for buybacks and debt reduction [16]. - Operational improvements and disciplined capital allocation have reduced execution risk and supported multiple expansions across these companies [16].