From Nasdaq: 2024-11-17 06:30:00

Amazon (NASDAQ: AMZN) stock has seen significant growth due to its cloud service business, AWS, which generates most of the company’s operating profit. With AWS revenue growing 19% year over year, Amazon’s stock is positioned to outperform other Dow Jones stocks in 2025 and beyond. The company’s long-term earnings growth estimate ranks third among Dow Jones stocks.

Nvidia (NASDAQ: NVDA) is a leading GPU supplier, recently added to the Dow, replacing Intel. The company’s chips are essential for training AI models, leading to high demand and profit margins. With revenue growing at high rates, Nvidia is expected to deliver profitable growth and returns to investors in 2025. The company’s upcoming earnings report will provide more insight into its momentum.

Investors may want to wait for Nvidia’s fiscal third-quarter 2025 report before buying shares, as earnings news can cause share price volatility. Analysts expect annualized earnings growth of 35%, ranking among the top of the Dow Jones. With a forward price-to-earnings ratio of 36, Nvidia’s stock could offer superior returns in the next year. The company’s revenue growth is expected to be robust due to the shortage of AI chips.

Consideration should be given to the 10 best stocks identified by The Motley Fool Stock Advisor team, which may offer better investment opportunities than Amazon. The service has a track record of providing guidance on successful stock picks, with a history of outperforming the S&P 500 since 2002. Stock Advisor’s recommendations have the potential to produce significant returns for investors over time.



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