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In 2025, there are a large number of companies that could potentially emulate NVIDIA (NASDAQ:NDVA) stock market has outperformed in recent years. Given the exciting advances in areas such as artificial intelligence (ai), quantum computing, gene editing, healthcare and several other sectors, there is no shortage of catalysts.
However, by focusing on three companies, investors may want to consider celestial (NYSE:CLS), Now holdings (NYSE:NU), and Gorilla technology Group (NASDAQ:GRRR) for potential market-beating growth. Each of these companies possesses unique characteristics and growth potential that could drive significant stock appreciation.
<h2 class="wp-block-heading" id="h-undervalued-in-ai“>Underrated in ai
Celestica is benefiting from the ai revolution as the company provides hardware and supply chain solutions for hyperscalers and data centers. Driven by the company's Connectivity and Cloud Solutions segment, earnings rose about 70% in the latest quarter, and forecasts clearly indicate stronger growth.
Celestica's current price-earnings-growth (PEG) ratio of 0.88 suggests the stock may be undervalued relative to its growth potential. In fact, several ai-focused peers trade at more than double this ratio.
While Celestica is beating estimates and appears to be a great value, investors should note that just 10 customers account for two-thirds of sales. This could represent a concentration risk. However, taking into account the growth forecast, Celestica, my largest holding, has all the makings of a potential big winner in 2025.
New banking
While there are a host of neobanks in the UK, none of them have made as much of a splash as Nubank, run by parent company Nu Holdings. The Warren Buffett-backed company, which is the largest neobank in Latin America, has a market capitalization of $50 billion at the time I write.
Nubank has generated explosive customer growth in recent years, reaching 109.7 million global customers in the third quarter of 2024, up from 89.1 million year-over-year. This rapid expansion, particularly in Brazil, Mexico and Colombia, is expected to continue as it leverages the financial needs of unbanked populations.
The company saw a 56% increase in revenue in the third quarter, while net income increased 82.6%. However, investors should be wary that the stock is highly valued based on expected growth. The forward price-to-earnings (P/E) ratio is 24.5 times, but is expected to fall to 8.5 times by 2027.
Additionally, some analysts have highlighted some potential challenges in loan management with a rising rate of non-performing loans over 90 days. Despite the risks, this could be one of the cheapest stocks on the market based on late-decade earnings.
<h2 class="wp-block-heading" id="h-gorilla-technology“>gorilla technology
Security, networking and business intelligence company Gorilla technology Group, although less well-known than the other two companies, has shown explosive growth potential that could mirror Nvidia's success. The London-based ai company is really booming, up more than 700% in the last six months.
The company recently updated its 2025 expectations and generated a lot of interest from investors. With EBITDA rapidly rising to between $18 million and $25 million in 2025 and net income in excess of $15 million, it is an interesting prospect with a market capitalization of around $200 million.
However, the truth is that the market does not know much about Gorilla Group. While it looks like an interesting proposition on paper, very few analysts cover the stock. It is also cash flow negative and may struggle with execution risk as it scales to larger contracts. It may be a risky investment, but the potential is huge.
