Best Performing Stocks in 2025: What Investors Need to Know

This is for informational purposes only, not investment advice.

The US stock market has seen significant growth since October 2025. This growth is driven by advances in artificial intelligence (AI). Clean energy and digital infrastructure also contribute. However, this upward trend comes with significant risks that investors should be aware of. Here’s an overview of the top performing stocks, key insights and associated risks:

Top Performing U.S. Stocks in 2025:

• Palantir Technologies (PLTR)
  Productivity: 107.2% increase in 2025
  Sector: Data Analytics
  Insight: Palantir’s advanced data analytics capabilities continue to attract attention, especially from government and enterprise clients.
• Seagate Technology (STX)
  Performance: 94.0% growth in 2025
  Sector: Data Storage
  Insight: Seagate’s performance reflects the growing need for data management in the digital age.
• General Electric (GE)
  Productivity: 65.0% increase in 2025
  Sector: Diversified Industrial
  Insight: GE’s diversified portfolio and strategic initiatives have led to significant growth.

Key insights for 2025:

• AI and Tech Dominance:
• Performance: Companies like Apple, Alphabet, Microsoft, and Nvidia continue to lead the market. They benefit from advancements in AI. These companies also benefit from improvements in digital infrastructure.
• Insight: Apple and Alphabet recently hit new record highs, driven by strong product sales and investments in artificial intelligence.

2. Sustainable growth:

• Performance: Eaton is an example of how integrating sustainability into business strategy can drive growth.
• Insight: The company is on track to nearly double its profits from 2021 to 2025. A significant portion of its sales comes from solutions focused on sustainability.

Key Risks to Monitor:

• Valuation Concerns – Insight: The S&P 500’s rise may mask underlying risks. Large-cap tech stocks continue to dominate the market.
• Economic Uncertainties – Insight: Improving corporate profitability is expected to normalise currently elevated valuations. Earnings growth of 9% in 2025 and 14% in 2026 will contribute to this normalisation.
• Geopolitical and Political Risks – Insight: We expect a return to more normal levels of market volatility in 2025. This is due to the market’s focus on changing global policies. These policies impact inflation.

For investors seeking diversified exposure, the SPDR S&P 500 ETF Trust (SPY) offers broad market exposure.

Given current market dynamics, it is critical for investors to be informed. They should consider both the opportunities and risks when making investment decisions.