One of the big unknowns that 2025 entails is how technology is going to behave. Since the fever for Artificial Intelligence began (approximately at the end of 2022, with the appearance of ChatGPT), the big tech They have not stopped growing either in the stock market or in their income statements. But the fear of a technological bubble reminiscent of the year 2000 with dotcom It does not stop flying over the market. The situation is, however, radically different from then. All analyst forecasts continue to point to profit growth for the technology giants in 2025. Specifically, those known as The Magnificent Seven will increase their profits on average by 24% in 2025. This figure is 10 points higher than what is expected for the company itself. S&P 500.
This group of technology companies (made up of Nvidia, Apple, Microsoft, Alphabet, Amazon, Meta and Tesla) represent, in fact, around 25% of the profits that the index will generate. That is, if that 25% is subtracted from the profit growth that experts estimate for the US index, the percentage is reduced to 10.5%. In fact, that 10% is what will at least increase your magnificent profits.
Among all of them, Nvidia will once again lead the largest increases. Specifically, The semiconductor manufacturer will earn 53% more in 2025 than it will finally do this year (a figure of just over $70 billion is expected, a benefit that is already 135% higher than in 2023). And the profit figure projected for next year will exceed, for the first time in its history, $100 billion.
“Nvidia is on track for record fiscal 2025 revenue with strong momentum, which may significantly bolster its financial flexibility. AI-driven free cash flow acceleration has contributed to its rating upgrade. S&P and Moody’s have raised ratings (Aa3/AA-) to the best in its semiconductor class. Its market capitalization, close to 3.2 trillion dollars, has risen more than 2,000% in the last five. years and maintains one of the lowest debt-equity ratios in the sector“, they emphasize from Bloomberg Intelligence.
For these 2025 profits, a PER (times the profit is included in the share price) of 30 times is paid. Although it may seem like a high multiplier, the truth is that Nvidia is listed on the stock market with a discount of up to 95% compared to the average multiple of the last decade.
A notable reduction in price that also occurs with the company’s shares at historical levels and after revaluating again by more than 190% in this year alone. Expert estimates predict that the rise has still run out and that may continue to extend an additional 29% in the next year. Analysts set the target price for its shares at $172.96 per share, a valuation with which the semiconductor company could exceed 4 trillion dollars in capitalizationbecoming the first company in the world to achieve such a market value. The experts’ recommendation is to buy its shares.
As the Spanish proverb says, no one gave a dime by Tesla. The company led by Elon Musk has gone through a tough crisis in recent years and the firm has been heavily punished by Chinese competitiveness in terms of the prices of electric vehicles. The situation has led the company to have to reduce the prices of its models on several occasions. However, euphoria broke out with the company following its latest quarterly results in which it exceeded analyst estimates.
From those accounts, which he presented at the end of October, its shares appreciate by 110%although experts believe that this rally has gone too far and Tesla is trading without potential for 2025. The average recommendation continues to be to hold positions, but the percentage of those analysts who advise buying is the highest since April 2022.
Despite the good color From its latest accounts, the difficult context will continue to weigh on the 2024 results and analysts expect a contraction in profits of 26% compared to 2023. This contraction will, however, be punctual and Tesla will return to the path of growing profits in 2025, by which time experts expect an expansion of its profits of 41% to approach 11.4 billion dollars.
Amazon will go from reaping profits below $55 billion this year to exceeding $67 billion next year, which means an increase of 23%. Both figures would constitute historic profits for the firm. “We believe Amazon should be valued as a services company rather than a product company. Operating margins for services (including advertising, subscriptions, cloud, etc.) are much higher and growing faster than the core e-commerce business The growth of the services business implies an expansion of the valuation multiple due to higher margins,” they explain from Needham.
On the stock market, the ecommerce company’s shares are made with a buy recommendation by experts. After appreciating nearly 50% in 2024, analysts expect Amazon to continue growing its stock market by an additional 5% in 2025.
Apple will be another of the companies that will achieve profits of more than $100 billion in 2025, joining the Saudi oil company Aramco, the only one to reap that amount of profits in the world. For the signing of the applethis profit figure will mean improve by 18% what you achieve this year.
“We rate Apple stock Overweight on our favorable outlook for the iPhone cycle, led by advances in AI, as well as resilience in services revenue relative to investor expectations. We see across several aspects of the business, as well as in the financial aspects that investors continue to undervalue, namely, the transformation of the company into Services, the growth of the installed base, technological leadership and the optionality around the evolution of capital,” they explain from JP Morgan.
For their part, Meta and Microsoft will continue to expand their profits in 2025 by 11% in both cases in the next fiscal year. The profits of the firm chaired by Mark Zuckerberg are the cheapest of this group of companies. big techto a PER lower than 24 times in 2025, but Microsoft doubles the upward potential for the next year, 13%, compared to the 6% Target. Both are a stock buy for experts.
Finally, Alphabet (Google’s parent company) will also join the club of companies in 2025. one hundred millionaires (in 2026, Microsoft will also join) and Analysts estimate its profits to be close to $110 billion.s, 10% of the 99.6 billion expected for this year. With an upward trend of 11%, analysts also advise taking positions in the company.
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