We're more than halfway through 2025, and so far, it's shaping up to be another solid year for the stock market. As of this writing, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average are up 8%, 10%, and 4%, respectively.
Yet, our three Motley Fool contributing analysts have their eyes on three stocks with gains far exceeding those of the major indexes: Roblox (RBLX 2.58%), MercadoLibre (MELI -2.41%) and Taiwan Semiconductor Manufacturing (TSM 0.84%).
Here's what they like about them.
Image source: Getty Images.
Grow a Garden's popularity is helping to drive Roblox's stock price higher
Jake Lerch (Roblox): Shares of Roblox have more than doubled year to date, advancing some 132% as of this writing. Yet, I think there's still time for investors when it comes to Roblox. Here's why.
First, Roblox's latest quarterly earnings report paints a clear picture: The company is hitting key benchmarks in its effort to establish itself as a key player within the global gaming market.
Roblox's revenue for the second quarter (the three months ending on June 30, 2025) increased to $1.1 billion, up 21% from a year earlier. Daily active users and hours engaged rose by 41% and 58%, respectively.
Much of this growth is thanks to Roblox's latest blockbuster gaming hit, Grow a Garden, which has smashed popularity records previously held by other famous video games, such as Fortnite. In July, the game set another record with 21.9 million concurrent players, besting a previous record set in June.
The massive popularity of Grow a Garden isn't just good for headlines, but also for Roblox's bottom line -- and its stock price. Roblox's bookings, which represent future revenue flows, increased dramatically during Q2, rising to $1.4 billion, an increase of 51% year over year. Furthermore, the company raised guidance for third-quarter bookings to around $1.6 billion.
Granted, it wasn't all good news. Roblox also reported an overall net loss of $278 million -- its most considerable quarterly net loss in more than a year. However, free cash flow remains positive, and the company's balance sheet is solid, with $2.6 billion in cash versus $1.8 billion in debt.
Roblox stock has soared this year thanks to its solid growth and a big hit game. Investors who are willing to hold through volatility may want to consider the stock now, despite its big run-up this year.
It's onward and upward for this Latin American tech giant
Will Healy (MercadoLibre): MercadoLibre is unlikely to stop at its 42% gain since the beginning of the year.
The company's e-commerce, fintech, and logistics businesses have successfully worked together and separately to drive rapid revenue growth and market leadership in their respective areas.
The company has capitalized on its first-mover status in Latin America in e-commerce, holding its own against competitive threats. It accomplished this in part through Mercado Pago, offering digital payment methods for cash-based customers. Investments in logistics locally gave it a competitive advantage over the likes of Amazon (NASDAQ: AMZN) and Sea Limited (NYSE: SE), and selling advertising on the site has also contributed to its success.
Additionally, Mercado Pago fostered success in fintech, and the company expanded this business to serve customers not buying on MercadoLibre's site. Likewise, the logistics network became known as Mercado Envios, and aside from fulfilling and shipping MercadoLibre orders, it acts separately to bring same-day and next-day delivery to parts of Latin America.
With that, its financials show growth potential and a few challenges. In the first half of 2025, revenue of nearly $13 billion grew 35% compared to the same period last year.
Still, costs and expenses grew 36%. Expanded free shipping and higher marketing costs led to much of this increase. A 57% increase in the provision for doubtful accounts amid an expanding credit portfolio also weighed on expenses. With that, MercadoLibre reported a net income of $1.4 billion in the first two quarters of the year, rising 24% compared to the same year-ago period.
Admittedly, MercadoLibre did not offer specifics on its forward guidance. Nonetheless, given the company's history, investments in it are likely to pay off in future quarters. The company will probably make adjustments to improve the returns from its credit portfolio over time.
Furthermore, while its price-to-earnings ratio of 59 points to a somewhat pricey valuation, such an earnings multiple will likely not deter MercadoLibre bulls given its revenue growth. As it stays on its current trajectory, an expanding market in its home region is likely to continue taking MercadoLibre stock higher.
AI growth continues to trickle to Taiwan Semiconductor Manufacturing
Justin Pope (Taiwan Semiconductor Manufacturing): The tariffs announced on "Liberation Day" plunged non-U.S. companies into uncertainty, but Taiwan Semiconductor Manufacturing has rebounded. The stock has surged over 23% this year.
While Taiwan Semiconductor, the world's leading foundry (semiconductor manufacturer), is based in Taiwan, it has made serious investments to establish operations in the United States, helping the company gain a favorable status with the Trump administration. At the same time, the company is putting up stellar business results due to an insatiable appetite for chips used in artificial intelligence data (AI) centers.
The company's sales grew by a whopping 38.6% year over year in the second quarter of 2025, while its net income rose 60.7%. Counterpoint Research estimates that Taiwan Semiconductor's revenue share of the global foundry market has increased from 58% in Q2 2023 to 67% as of fourth-quarter 2024. That paves the way for continued growth, with data center spending potentially approaching $7 trillion over the next five years.
Wall Street analysts estimate that Taiwan Semiconductor will grow earnings by an average of 21% annually over the next three to five years. The stock currently trades at a price-to-earnings ratio of 28, a bargain valuation if the company grows anywhere near analyst projections. That makes Taiwan Semiconductor a solid bet to continue building on its year-to-date rally.
