This year has been great for stocks, as indexes confirmed the presence of a bull market and then went on to reach multiple record highs. The Dow Jones Industrial Average, which includes 30 of the top large-cap stocks powering today’s economy, roared past 40,000 for the first time ever and is now heading for a gain of about 16% since the start of the year.
The great news is that this positive momentum may be far from over. History shows that bull markets generally last much longer than bear markets — nearly nine years versus less than two, according to First Trust data — and that suggests stocks may continue to climb. Let’s check out three Dow stocks that have advanced this year and are set to soar in 2025 and beyond.
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1. Amazon
Amazon (NASDAQ: AMZN) is a giant in the world of e-commerce, today counting more than 200 million members in its Prime subscription service. And many others order from Amazon, even without a Prime membership.
The company already saw its stock soar more than 35% this year as it reported double-digit quarterly revenue growth and its investment in artificial intelligence (AI) helped it gain in efficiency — such as selecting the fastest delivery routes, for example. This may seem like a small detail, but together, all efficiency improvements lower Amazon’s costs.
Amazon also benefited from the improvements it made to its cost structure a couple of years ago, and it should continue to see a positive impact. On top of this, a lower-interest-rate environment — the Federal Reserve just completed two rounds of cuts — should progressively flow through to consumers, increasing their buying power. This means they should have more to spend on discretionary items, along with the essentials they’ve continued to buy on Amazon.
All of this should help Amazon’s shares continue to march higher.
2. Apple
Apple‘s (NASDAQ: AAPL) solid moat has helped its iPhone and other devices stay on top. Last year, the iPhone took the No. 1 spot worldwide in the smartphone market, with record market share, according to International Data Corp. The company’s brand strength keeps users loyal and eagerly awaiting the next version of their favorite smartphone.
This is helping Apple generate a whole new source of growth — services. Apple now has more than 2.2 billion installed active devices out in the market, and these users can subscribe to a variety of services — from digital content to cloud storage — and they’re doing so in a major way.
Quarter after quarter, Apple has reported record services revenue, and this may continue as the company integrates AI into its devices — making an already appreciated system even better.
Apple has a long track record of growth and offers investors dividends. Now, thanks to its services and investment in AI, a new wave of growth may be ahead. It’s clear that Apple stock could have more room to go higher in the near term and over the long term, too.
3. Nvidia
Nvidia (NASDAQ: NVDA) just joined the Dow this month after clearly demonstrating its strengths over the past few years. The AI chip leader has reported triple-digit earnings growth quarter after quarter, and this strength is likely to continue, thanks to the company’s focus on innovation. It’s promised to update its top-performing chips on an annual basis.
Though Nvidia stock has soared 2,700% over the past five years and is heading for a gain of nearly 200% this year, the stock is a smart bet for 2025 and beyond. Today’s $200 billion AI market is forecast to reach $1 trillion by the end of the decade, and Nvidia is likely to benefit from this growth. The company holds about 80% of the AI chip market and is preparing to launch its latest architecture, Blackwell — its most powerful chip ever. Demand is surpassing supply, showing the popularity of Nvidia’s products.
Nvidia shares may not rise in one straight line — stocks rarely do that — but the Blackwell launch and the billions of dollars in revenue the platform should generate might boost the stock next year. The complete Nvidia portfolio, powered by new products and services launching at a rapid pace, could keep the gains going well into the future.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, and Nvidia. The Motley Fool has a disclosure policy.