Stock Market Correction: Here Are My Top 5 Stocks That Could Soar By The End of 2025

Source The Motley Fool

With the stock market in a correction, some investors are likely to remain a bit pessimistic. There are many unknowns about the effect of tariffs, and the market hates uncertainty. However, I think there are multiple stocks that can rise above any doubts, and these ones could soar before 2025 is over.

Although many stocks can fit into this category, I believe Nvidia (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing (NYSE: TSM), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Advanced Micro Devices (NASDAQ: AMD), and The Trade Desk (NASDAQ: TTD) are excellent buys right now.

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AI spending won't be affected by any perceived weakness

Nvidia, AMD, and Taiwan Semiconductor Manufacturing are three direct beneficiaries of the AI arms race. Although the market is worried about how tariffs will affect the consumer, there's likely little that can be done to affect how much the AI hyperscalers are spending on computing infrastructure. These companies are cash-flow generating machines and will have no problem spending truckloads of money on AI equipment.

This spending will directly benefit this trio, although the amount varies by each company. Nvidia is, by far, the biggest beneficiary, as its data center GPUs are best in class and captured a large chunk of the market. Management expects to put up monster growth throughout 2025 (Nvidia's FY 2026), but in Q1, its revenue is expected to grow around 65%. That may also be a conservative estimate, as management tends to beat expectations by a wide margin.

AMD's GPUs aren't nearly as popular as Nvidia's, but they are still benefiting from the AI rollout. Its data center revenue rose 69% year over year in Q4, although its revenue total is only $3.9 billion (versus Nvidia's $35.6 billion total and 93% growth). But AMD has a much better valuation than Nvidia.

AMD's stock performed poorly over the past year and now trades for a mere 22 times forward earnings.

AMD PE Ratio (Forward) Chart

AMD PE Ratio (Forward) data by YCharts

Considering the S&P 500 trades for 20.5 times forward earnings, that's not a bad price to pay for AMD, since Wall Street analysts expect AMD's revenue to grow revenue more than 20% during the next two years.

Taiwan Semiconductor Manufacturing Company is a key supplier for both AMD and Nvidia, producing the chips that go into their various devices. Neither Nvidia nor AMD have semiconductor production capabilities, so they farm that work out to TSMC. The company is the leading contract chip manufacturer, and its neutrality gives it an unparalleled vision into the future of chip production because many of these orders are placed years in advance. Management expects AI-related revenue to grow at a 45% compounded annual growth rate (CAGR) over the next five years, with its companywide growth rate nearing 20%.

This shows how much demand there is for AI chips. With its existing U.S. facilities selling out chip production through 2027, it's clear that its latest round of a $100 billion expansion in the U.S. is needed. Despite this phenomenal growth projected, TSMC's stock is even cheaper than AMD's, trading at 19 times forward earnings. That's a no-brainer price for a global leader in chip production, and investors should scoop up shares while they have the chance.

Alphabet and The Trade Desk have strong growth prospects

For Alphabet, its Google product suite is a must-have for advertisers. This will insulate it from any economic downturn, as it's able to maintain its revenue even if there's economic uncertainty. While this segment doesn't provide much growth, it has others that provide that upside. Google Cloud is one of the biggest growth drivers, and its revenue rose 30% in Q4. Cloud computing is one of the biggest beneficiaries of the AI arms race, and Google Cloud's growth backs that up.

Like TSMC and AMD, Alphabet's stock is also fairly cheap, trading for less than 18 times forward earnings.

GOOGL PE Ratio (Forward) Chart

GOOGL PE Ratio (Forward) data by YCharts

Considering its strength, that's a huge discount for the market, and it's a clear buying opportunity right now.

The Trade Desk is another advertising company. Its buy-side platform helps those wanting to advertise place their online ads in the best location possible. While it had a long-term track record of solid execution, it stumbled in Q4 and missed management revenue guidance for the first time in its history. This occurred because it's transitioning from one platform to another, which can harm revenue growth.

This caused the stock to sell off massively, and it now sits over 60% down from its all-time high. This is a knee-jerk reaction, as The Trade Desk still has a massive runway to dominate, especially with its connected TV ad platform offering. I think now is an excellent time to scoop up shares of The Trade Desk, as the long-term trajectory of this top-tier business far outweighs any short-term concerns.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keithen Drury has positions in Alphabet, Nvidia, Taiwan Semiconductor Manufacturing, and The Trade Desk. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Nvidia, Taiwan Semiconductor Manufacturing, and The Trade Desk. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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