Following a bumpy beginning in 2025, the stock market has rebounded and is approaching its record peaks. The S&P 500, Nasdaq Composite, Dow Jones Industrial Average, and Dow Jones Transportation Average have risen by 6%, 7%, and 4% respectively year-to-date. Given this context, which stocks should investors consider? Here are three I think are shrewd picks at the moment.
Advanced Micro Devices
Over the past two years, Advanced Micro Devices (AMD) stock has experienced a significant rollercoaster ride. In 2023, it soared an impressive 128%, only to dip 18% in the following year. However, as I write this, the stock is once again gaining momentum, climbing a robust 20% this year, putting it far ahead of the Nasdaq Composite’s 7% increase within the same period.
The driving force behind this? The increase in AMD stocks is largely due to analysts on Wall Street who are optimistic about the company’s latest AI processors. They believe these chips will give AMD a competitive edge against Nvidia in their ongoing rivalry.
Essentially, Nvidia continues to reign supreme in AI chip technology, largely due to its historical dominance in the graphics processing unit (GPU) sector. Nevertheless, the landscape is shifting. The upcoming AMD MI400 chips and their predecessor, MI350, are creating a buzz and could potentially narrow the gap between AMD and Nvidia in the broader data center GPU market.
Furthermore, AMD’s growing presence in the AI data center sector is contributing significantly to its profit margins. In fact, over the past three years, AMD’s gross margins have expanded from approximately 42% to more than 50%, as the company’s product mix has moved away from lower-profit CPUs towards higher-profit GPUs.
To sum up, AMD’s newfound strength in the AI chip market makes it a stock to consider right now.
MercadoLibre
To put it simply, MercadoLibre (MELI, down 2.27%) is a stock that every investor ought to be familiar with, yet not all are. It stands out as the foremost e-commerce platform in Latin America – a region where competing operators have historically faced challenges.
Nevertheless, MercadoLibre appears to have found the solution. This development bodes well for the company since it implies there is a vast market they can continue expanding into. Their business strategy revolves around a traditional formula: They operate an online marketplace that connects buyers and sellers, followed by providing delivery solutions to ensure items reach customers’ homes.
Furthermore, the business provides digital payment options like Mercado Pago and marketing services such as Mercado Ads.
If the description seems reminiscent of Amazon, that’s not coincidental. Indeed, it’s challenging to dispute MercadoLibre’s performance. In the initial quarter alone, they announced:
This version aims to maintain the original meaning while using more conversational and easy-to-understand language.
- $5.9 billion in revenue, up 37% year over year.
- $494 million in net income.
- $795 million in free cash flow.
1) The figures are impressive, showcasing the robustness of the company’s business strategy. However, investing in MercadoLibre comes with certain risks, mainly due to the company’s regional concentration in Latin America. Any economic or political instability in its primary markets could negatively impact MercadoLibre’s operations and stock value. Consequently, this may not be suitable for all investors.
Alphabet
To sum up, it’s worth mentioning Alphabet (GOOG, up by 0.52%), widely recognized as one of the leading internet companies. A recent study by Datareportal and SemRush revealed that Google and YouTube, both under Alphabet’s umbrella, remained at the top of the list for most visited websites. Interestingly, these two sites together attracted over 200 billion monthly visits, surpassing the combined traffic of the next 18 popular sites.
Furthermore, Alphabet is leading the charge in numerous innovative, state-of-the-art technologies. For example, consider autonomous taxis like those developed by Waymo, Alphabet’s self-driving vehicle subsidiary. They are among a small number of companies offering robotaxis to paying customers at present.
Many experts view robotaxis as the potential future of travel, offering a promising new income source for Alphabet. Moreover, Alphabet is also dedicating resources to artificial intelligence (AI) projects and quantum computing. If Alphabet manages to pioneer some of the world’s upcoming significant technological advancements in any of these fields, it could reap substantial benefits.
To put it simply, Alphabet has already established itself as a major player in technology, yet it’s not content with this achievement. Through strategic investments in artificial intelligence, self-driving cars, and quantum computing, Alphabet is primed to continue dominating the stock market for years to come.
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2025-07-18 02:02