The Nasdaq Composite index has gained close to 20% year to date in 2025, driven by the AI megatrend in the tech sector. Analysts predict a sustained rally into 2026 as historical trends suggest bull markets can last up to eight years once they hit the three-year mark.

Nvidia’s stock has surged 34% in 2025 to around $180, with demand for its AI chips exceeding supply. The company is positioned for significant revenue growth as it fulfills booked orders worth $307 billion in the next five quarters, showcasing strong potential for future earnings growth.

Applied Digital stock has soared by 211% in 2025 to approximately $24, with plans to expand data center capacity to 700 MW by 2027. Securing $5 billion in funding, the company aims to capitalize on the growing demand for AI data centers, potentially leading to substantial revenue and market cap growth.

Analysts expect Applied Digital to experience impressive growth beyond the next couple of years, despite the stock trading at 28 times sales currently. With the potential for the company to justify its valuation through revenue ramp-up and market demand for AI data centers, a premium valuation could lead to significant stock price gains in the future.

Read more at Yahoo Finance: The Best Stocks to Buy With $250 Before It Does