Nvidia, a chipmaker, was the talk of 2024. The little-known company became one of the world’s most valuable companies, often claiming the top spot.
Nvidia shares rose more than 185% in the past year, and were hovering around $137 as of Tuesday.
Nvidia, despite its stellar performance, is only ranked third on the S&P 500 list of the top performing stocks for 2024.
Vistra Corp., which specializes in software platforms for Big Data Analytics, has seen its share price rise by over 267% YTD.
Here’s what analysts say about each of these stocks in 2025:
Palantir:
Palantir has benefited from the hype surrounding generative artificial intelligence, as it was an early adopter of what we know today as AI.
The company is a specialist in data analytics. It processes vast amounts of data to uncover insights and trends.
This technology was used to develop large language models (LLMs), which power platforms such as ChatGPT.
Dan Ives, an analyst at Wedbush, has consistently expressed his confidence in the ability of the company to capitalize on the AI boom.
Recently, he raised his target to $75. Palantir’s price was $77.18 on February 2.
Ives believes that the company is well-positioned to duplicate the success of Oracle, the software and cloud computing giant in the AI age.
Rishi Jaluria, an analyst at RBC Capital Markets, has a much lower price target of $11 on Palantir.
His valuation is based upon a multiple of enterprise value to revenue of seven times the revenue forecast by his company for 2025, which is a stark contrast to its current multiple (33 times).
Jaluria believes that Palantir’s reward-risk profile is “skewed unfavorable.”
In his latest research report, he noted that the company’s recent strength in earnings was heavily influenced by government contracts. This was influenced by the timing and specific deals. Growth in the commercial segment, however, has slowed.
Vistra Corp.
Vistra Corp., the integrated retail electric and power generation company located in Irving, Texas.
Vistra has taken advantage of the surge in electricity demand caused by AI data centers, cryptocurrency mining and other industries that consume more energy than entire nations.
The demand for electric vehicles (EVs) is expected to continue and increase with the ongoing transition.
Investors are attracted to the stock because, despite the fact that EV demand has been less predictable than expected, the outlook for energy demand is still extremely positive.
The shares of the Texas-based company have more that tripled in the past 12 months, but are still cheaper than Constellation Energy.
Shahriar Pourreza believes that AI companies are interested in the company’s gas and nuclear assets.
I like Vistra, because I don’t need to guess whether the next deal will be a nuclear or gas plant.
In his report, he named Vistra stock as his top pick for the year 2025.
Pourreza’s $177 target price indicates that VST could rise another 26% from current levels.
On the other hand Max Greve of Seeking Alpha believes over time, more consumers will move away form grid energy towards standalone-solar-storage.
“I realize that’s a controversial opinion which many have taken issue with. “I still think that we are more likely than not to see a shift in grid-demand – with business demand higher and consumers lower – rather than a massive expansion of grid-demand,” he writes.
He says that he has avoided all electric grid stocks, including ConEd, Dominion and NRG Energy.
This hasn’t worked out well for me this year with Vistra. Between the AI demand and the potential EV extensions, I don’t recommend a quick. I’m staying away from Vistra despite its admittedly short-term potential.
This post, These 2 stocks beat Nvidia’s 2024 gains: Here’s where they could be in 2025, may be updated as new information becomes available.
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