In December 2024, I shared with investors my top ten stock picks for 2025. These stocks were, in no particular order:
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Taiwan Semiconductor Manufacturing (NYSE: TSM)
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ASML (NASDAQ: ASML)
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Meta Platforms (NASDAQ: Meta)
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Alphabet (NASDAQ: GOOG, NASDAQ: Google)
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Amazon (NASDAQ: AMZN)
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CrowdStrike (NASDAQ: CRWD)
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dLocal (NASDAQ: DLO)
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PayPal (NASDAQ: PYPL)
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MercadoLibre (NASDAQ: MERI)
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Nvidia (NASDAQ: NVDA)
If you took my advice and purchased these stocks last year, there’s a good chance you’re feeling quite pleased. Seven of the ten companies, part of the S&P 500, had significant gains, with six of them showing increases of over 25% within the year.
Yet, it’s natural for investors to worry that a strong performance might lead to a decline the following year. So, are these stocks that saw a rise of more than 25% still worth considering for 2026?
Six companies fell into that category: dLocal, CrowdStrike, Nvidia, TSMC, ASML, and Alphabet. From these, I believe Nvidia, TSMC, and dLocal could potentially replicate their 2025 success and rise by at least another 25%.
Nvidia and TSMC, as top hardware providers, are significantly involved in the artificial intelligence arms race. Nvidia’s GPUs have set the standard for AI applications, and TSMC manufactures the crucial chips that power these devices, which both benefit from large investments in AI technology. I think they are well-positioned for strong returns in 2026, especially since AI spending isn’t likely to slow down anytime soon.
dLocal offers payment processing solutions for businesses looking to tap into emerging markets, and while I see considerable growth potential, part of their future performance may hinge on recovering to prior highs, as their stocks are still down about 80% from their peaks.
This leads me to wonder about the prospects for the other stocks on my list.
I still see promise in CrowdStrike, ASML, and Alphabet, but I don’t expect them to match their earlier over 25% gains in 2025. These stocks seem fully valued and carry some risk in terms of valuation. ASML and Alphabet, for example, have forward P/E ratios of 43x and 29x, respectively, which might restrict their future earnings growth.
CrowdStrike, valued at a higher 25x sales, reflects typical valuation patterns for software companies given their past performance.
While these high valuations might pose challenges in 2026, I genuinely believe they can still perform adequately enough to outperform the market.
Before diving into Nvidia stocks, there are a few things to consider:
My analyst team has highlighted what they regard as the best ten stocks investors should consider right now, and interestingly, Nvidia isn’t among them. These ten companies are projected to offer impressive returns in the coming years.
No matter when you look back, those initial investments could have yielded remarkable results. The average return for our stock advisor is strikingly high compared to the S&P 500.
