The Dow Jones Industrial Average (^DJI +0.49%) roared higher last year, gaining more than 12%, as some of its biggest growth companies advanced. Investors piled into stocks benefiting from the artificial intelligence (AI) boom, as well as companies likely to win in a lower-interest rate environment. These themes continue to attract investors -- and that could bode well for those who put their money behind certain growth players.
Thanks to this ongoing momentum, 2025 may be another good one for the Dow Jones, and three stocks in particular might lead the gains. Two already are excelling thanks to their early dominance in AI, and the third has long been a leader in its industry. Let's take a close look at these three players set to soar in 2025 and beyond.
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1. Nvidia
Nvidia (NVDA +1.68%) joined the Dow Jones last year and went on to post the top performance in the index for the year -- the stock surged 171%. Some investors have worried that, after such gains, Nvidia may be ripe for a pause. But I don't think that moment is now, and here's why.
NASDAQ: NVDA
Key Data Points
As the dominant player in the AI chip market, Nvidia is committed to innovation, and that's the key to ongoing leadership. It's promised to update its chips annually, and a big moment is unfolding right now -- the launch of its potentially game-changing Blackwell architecture and chip. This fully customizable system offers customers great gains in efficiency, something that's key as companies race to develop AI projects. On top of this, reports say Nvidia is ahead of schedule on the release of the next-generation architecture, Rubin, which may launch later this year instead of next year.
These launches, as well as upcoming revenue from Blackwell -- Nvidia predicts several billion dollars in the very first quarter of commercialization -- may push this stock higher in the near term. And Nvidia's leadership and commitment to innovation should make this stock a winner for your portfolio over time.
2. Amazon
Amazon (AMZN +3.97%) represents another company that's already gaining from its AI investments. The company is benefiting from the technology in two ways. In Amazon's e-commerce business, it uses AI to make gains in efficiency and improve the shopping and selling experiences for customers and partners. And in cloud computing, it sells AI solutions to customers.
Here's a closer look at how this is driving earnings gains. Amazon has been using AI across its fulfillment network, for example, to help select the quickest route for each delivery. These efforts reduce costs for Amazon, and by delivering packages more quickly, please the customer too -- a key element to reinforcing customer loyalty.
NASDAQ: AMZN
Key Data Points
As for cloud computing, Amazon Web Services (AWS) offers customers everything from the basics -- like AI chips in all price ranges -- to a fully managed service that allows them to tailor top large language models to their projects. All this helped AWS reach a $110 billion annualized revenue run rate as of the third quarter of last year.
AWS also offers tools to build AI agents, or software that can reason and apply decisions, and this may represent the next wave of AI growth -- great news for Amazon's earnings and stock performance.
3. American Express
American Express (AXP +1.12%) has built a strong track record of growth thanks to its dominance in the premium credit card market. The company generates revenue through transactions at merchants, annual fees, and finance charges. But the biggest driver is customer spending, which is higher per card versus the company's competitors.
The credit card powerhouse, known for its premium cards, keeps customers spending by offering them a variety of attractive perks and opportunities -- like dining rewards or hotel upgrades. All of this has helped this well-established company increase earnings into the billions. And rising return on invested capital in recent years shows the company's investments have been bearing fruit.
AXP Return on Invested Capital (Annual) data by YCharts
Now, moving forward, there's reason to be optimistic about what's ahead. American Express, in the recently completed full year, saw record levels of card member spending, reached a record of 13 million new card members, and has added millions of new merchants to its network. And back in October the company said millennials and Gen-Z consumers are its fastest-growing consumer group in the U.S., suggesting younger generations represent opportunity for the company.
All of this means American Express could be set to soar this year and well into the future, making now a great time to get in on the stock.
