In 2025, there are a host of companies that could potentially emulate Nvidia (NASDAQ:NDVA) stock’s market beating performance in recent years. Given exciting developments in areas like artificial intelligence (AI), quantum computing, gene editing, healthcare, and several other sectors, there’s no shortage of catalysts.
However, honing in on three companies, investors may want to consider Celestica (NYSE:CLS), Nu Holdings (NYSE:NU), and Gorilla Technology Group (NASDAQ:GRRR) for possible market-beating growth. Each of these companies possesses unique characteristics and growth potential that could drive significant stock appreciation.
Undervalued in AI
Celestica is beneficiary of the AI revolution, with the company providing hardware and supply chain solutions for hyperscalers and data centres. Driven by the company’s Connectivity & Cloud Solutions segment, earnings were up around 70% in the past quarter, and more robust growth is strongly indicated by the forecasts.
Celestica’s current price-to-earnings-to-growth (PEG) ratio of 0.88 suggests that the stock may be undervalued relative to its growth potential. In fact, several AI-focused peers are trading at more than double this ratio.
While Celestica is smashing estimates and looks great value, investors should bear in mind that only 10 clients account for two-thirds of sales. This could represent concentration risk. Nonetheless, with the growth forecast in mind, Celestica — my largest holding — has all the hallmarks of a potential big winner in 2025.
New banking
While there are host of neo banks in the UK, none of them have made a splash quite like Nubank, run by parent company Nu Holdings. The Warren Buffett-backed company, which is Latin America’s largest neo bank, has a market cap of $50bn as I write.
Nubank has generated explosive customer growth in recent years, reaching 109.7m global customers in Q3 2024, up from 89.1m year-over-year. This rapid expansion, particularly in Brazil, Mexico, and Colombia, is expected to continue as it leverages the financial needs of underbanked populations.
The company saw a 56% rise in revenue in the third quarter, while net income rose 82.6%. However, investors should be wary that the stock is valued heavily on expected growth. The forward price-to-earnings (P/E) ratio is 24.5 times, but this is forecast to fall to 8.5 times by 2027.
Moreover, some analysts have highlighted some potential challenges in loan management with a rising non-90+ day non-performing loan ratio. Despite the risks, this could be one of the cheapest stocks on the market based on earnings towards the end of the decade.
Gorilla Technology
Security, network, and business intelligence firm Gorilla Technology Group, while less well-known than the other two companies, has shown explosive growth potential that could mirror Nvidia’s success. The London-based AI firm is truly surging, up over 700% in the last six months.
The company recently updated its expectations for 2025, and it generated a lot of investor interest. With EBITDA rising rapid to between $18m to $25m in 2025 and net income exceeding $15m, it’s an interesting prospect with a market cap around $200m.
However, the truth is that the market doesn’t know a lot about Gorilla Group. While it looks like an interesting proposition on paper, very few analysts are covering the stock. It also has negative cash flow, and may struggle with execution risk as it scales to larger contracts. It may be a risky investment, but the potential is huge.
The post 3 companies that could emulate Nvidia stock’s success in 2025 appeared first on The Motley Fool UK.
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James Fox has positions in Celestica Inc and Nvidia. The Motley Fool UK has recommended Nu Holdings and Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
