Top 2 Stocks to Strengthen Your Portfolio in 2025 and Beyond

Investing in growing companies with near-term growth drivers can deliver exceptional returns. If you have some extra cash after paying off expenses or debt, here are two interesting stocks you can buy today that could skyrocket in 2025 and beyond.

1. Tesla

tesla (TSLA -0.76%) Over the past 10 years, we have overcome the odds to take on the best car manufacturers. The stock has had tremendous returns, but its recent underperformance compared to the market average could set the stage for another bull market. Tesla is struggling to grow its auto profits amid high interest rates, but the most important indicator of the company’s great future is improving margins.

Tesla’s cost of sales per vehicle was about $35,100 in the third quarter, the company’s lowest ever. If Tesla lowers its costs further, it will be able to sell its vehicles more cheaply and expand its customer base.

The stock has risen since its latest earnings report, in part due to Tesla’s margin performance. Operating profit rose 54% year-over-year to $2.7 billion, even though automotive revenue increased only 2% year-over-year. The company cited several factors for the increase, including increased revenue from the Fully Self-Driving (FSD) capabilities associated with the Cybertruck, increased vehicle deliveries, growth in its energy business, and lower per-vehicle costs.

Tesla’s car business could be on the verge of a rebound in 2025. Tesla’s revenue next year is expected to rise 15% to $114 billion, according to consensus analysts. Tesla plans to launch more affordable models next year, and plans to ramp up production of Cybercabs as early as 2026, opening the door to a robotaxi service that could further boost profits in the long term.

The stock appears expensive, trading at a forward price-to-earnings (P/E) ratio of 82 on 2025 earnings estimates, but this reflects expectations of margin improvement and strong earnings growth going forward. Analysts expect revenue to grow 31% in 2025. If the company meets these expectations, Tesla investors could see the stock bounce back from its recent slump.

2. Nvidia

nvidia (NVDA -1.36%) is another growth stock that could be a timely purchase in 2025. Nvidia’s innovations have allowed it to fundamentally dominate the AI ​​chip, or graphics processing unit (GPU) market. For artificial intelligence (AI) training to meet the demands of data processing, data centers will need to continue investing in more chips over the long term, which could push Nvidia stock higher.

NVIDIA’s GPUs are used in games, professional graphics applications, and self-driving cars, and the data center business accounts for 87% of total sales. The company’s second quarter revenue more than doubled compared to the same quarter last year, driven by strong demand in the data center market.

Dell’Oro Group predicts data center spending will grow at a CAGR of 24% through 2028, driven by AI-related infrastructure, including GPUs. Nvidia has important relationships with leading cloud service providers and AI researchers. There are more than 4 million developers using Nvidia’s CUDA programming model, but innovation is the most important factor driving Nvidia’s continued growth.

Nvidia’s upcoming Blackwell computing platform uses multiple chips, including GPUs, central processing units (CPUs), and data processing units (DPUs), all combined to act like a single superchip. It can deliver up to 30x faster AI inference performance. This is how chatbots like ChatGPT learn to quickly process questions and spit out human-like responses.

The company says demand for Blackwell already exceeds supply, meaning strong margin performance and revenue growth. Analysts expect Nvidia’s sales and profits to grow 42% next year. That’s enough growth to support the stock’s forward P/E of 35 for its 2025 earnings estimates. The stock might not double next year like it did last year, but it’s certainly possible to capitalize on the company’s earnings growth, which would push the stock closer to $200 in about a year.