Is the excitement surrounding chipmaker Nvidia fading? As of Monday, shares of the tech giant were down 19% since the start of 2025. Whether that's due to its high valuation, concerns about the economy, tariffs, or the possibility of a slowdown in tech spending on the horizon, investors don't appear as eager to own the stock anymore.
What may surprise you is that even over the past 12 months, Nvidia stock has risen by just 20% -- a solid return but not the type investors may have been expecting from the chipmaker, given the growth opportunities in artificial intelligence (AI).
Three stocks which have been far better buys than Nvidia over that stretch are Summit Therapeutics (SMMT +15.44%), Rocket Lab USA (RKLB +10.31%), and AppLovin (APP +0.18%). Here's how much these stocks are up, and whether they can still go higher.
NASDAQ: SMMT
Key Data Points
Summit Therapeutics: +366%
The highest-performing stock on this list is from a healthcare company that doesn't have an approved product in its portfolio. But that hasn't stopped Summit Therapeutics from reaching a valuation of more than $14 billion.
It may seem ludicrous to value a company so highly, but investors are effectively pricing in the approval of its cancer drug ivonescimab. The hype is due to a recent clinical trial that showed that it performed better than a top-selling cancer treatment, Keytruda, in treating non-small cell lung cancer.
Keytruda has generated tens of billions of dollars for Merck, which is one of the largest healthcare companies in the world. If Summit's ivonescimab is even in the same ballpark as Keytruda, then you could make the argument that even at a market cap of $14 billion, it still has much more upside.
But U.S. regulators haven't approved the drug. While the trial results were impressive, they were based on a trial in China, where the study participants may not be diverse enough to convince the Food and Drug Administration of its safety and effectiveness. Summit's potential is high, but so too is its risk; ivonescimab is by no means a lock to generate billions of dollars in revenue, but investors are buying the stock as if that's the case.
Unless and until the company releases similar results from a more diverse trial, you may be better off taking a wait-and-see approach with this highly-priced stock.
NASDAQ: RKLB
Key Data Points
Rocket Lab USA: +335%
Aerospace company Rocket Lab USA is another stock that has soundly outperformed Nvidia over the past 12 months. The business has been experiencing strong growth and recently capped off a record performance in 2024. Revenue rose by 78% to total $436 million for the year, and the company achieved 16 launches of its Electron orbital launch vehicle (used for small satellites), an increase of 60%.
Rocket Lab continues to secure more contracts and is eyeing much more growth ahead. One event investors will be watching for is the successful launch of its larger Neutron rocket, which is expected to take place in the second half of the year. If all goes according to plan, that could lead to even more excitement (and revenue growth).
However, Rocket Lab isn't profitable (it incurred a loss of more than $190 million last year), and with the company at a market capitalization of more than $8 billion, investors are paying over 20 times trailing sales for the stock. There's a lot of exciting potential here. But with a slowdown in the economy and possible cost reductions in government spending, investors may want to temper their expectations for the short term -- especially given the company's considerable losses.
The stock is down 30% this year, and more of a decline could be coming due to its high valuation.
NASDAQ: APP
Key Data Points
AppLovin: +283%
Tech stock AppLovin would be higher up on this list if not for multiple short sellers issuing scathing reports about the company this year, which have sent its share price down in recent weeks. Questions about how AppLovin gets its data have pushed some investors to dump the stock. The company refutes these claims.
AppLovin uses AI to help predict trends and help businesses optimize advertising and marketing strategies. It had 43% revenue growth last year as sales topped $4.7 billion, and its net income more than quadrupled to $1.6 billion. AppLovin has been a growth machine -- but with a valuation of over $90 billion, it's trading at more than 20 times its revenue and close to 40 times next year's earnings (based on analyst estimates).
Even if you dismiss the short-seller reports, AppLovin's high price tag should make you think twice about buying the stock, especially since the business may experience a slowdown given the uncertainty in the economy due to tariffs and trade wars. AppLovin is down 18% this year, and it wouldn't be surprising if it continues to go lower.
