Artificial intelligence (AI) has clearly been driving growth for a number of companies over the past few years. The technology promises to change the way many things are done and, as a result, supercharge companies' businesses and lower costs.
Many growth-oriented investors dream of finding the next hot stock that can churn out millionaire-making gains from a modest investment. But for every stock that delivers those multibagger returns, dozens of other promising stocks fizzle out.
The Dow Jones Industrial Average (DJIA) rose by over 3% in August. That was because of a generally good earnings season, tempered by lingering concerns about the effect of tariffs on U.S. businesses and consumers.
After a monster run over the last two years, Nvidia (NVDA 0.43%) is no longer just the leading artificial intelligence (AI) chip supplier; it's also one of the biggest cash machines in tech. The company designs and sells the graphics processing units (GPUs), networking, and software that power generative AI training and inference across cloud providers and enterprise data centers.
When Nvidia (NVDA 0.43%) started in 1993, it was a gaming company focused on graphics processing. It would go on to design the first graphics processing unit (GPU) in 1999, the same year the company went public.
There's no better sector for investors in 2025 than tech stocks. The technology sector makes up a whopping 30% of the S&P 500, and also has the best performance among equities, with a 15.6% overall return for the sector so far this year.
Billionaire Philippe Laffont runs Coatue Management, a successful hedge fund that nearly tripled the returns in the S&P 500 over the last three years. Coatue curates the Fantastic 40 Growth & Innovation Index, which distills the 150 largest technology companies into a list of 40 stocks best positioned to lead the market in the years ahead.
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