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Big Tech Stocks Don’t Trade on Fundamentals Anymore (AMZN, GOOG, META, MSFT)

2025-10-21 13:12:51 By David Jones

Key Points

Tech companies’ valuations are now driven primarily by AI performance rather than their traditional core businesses like e-commerce, cloud computing, or social media engagement.
The AI boom has fueled a nearly three-year market rally, similar to the late 1990s internet surge, with investors giving nearly all major tech stocks “AI valuations.”
Analysts warn of potential risks — since all major tech firms are now tied to a single theme (AI), a downturn in that sector could trigger a simultaneous decline across the entire market.
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Summary

Among the major changes that 24/7 host Doug McIntyre has noticed since the AI boom is that companies like Meta, Microsoft, Amazon, and Oracle no longer trade based on the fundamentals of their traditional businesses but instead on their performance in artificial intelligence. He explains that, in the past, investors evaluated these companies by their core divisions — such as Amazon’s e-commerce and cloud services or Meta’s user engagement and ad revenue — but now AI success dictates their market value. Lee Jackson agrees, adding that it’s been nearly three years since ChatGPT’s release, which ignited a massive rally in tech stocks. He mentions that companies tied to AI have seen enormous gains, citing examples like Applied Digital, which pivoted from crypto mining to AI data centers.

Doug points out that this AI dependency is risky because if AI stumbles, all major tech stocks could fall simultaneously. Previously, individual companies were affected by performance in their specific sectors, but now they rise and fall together based on AI sentiment. Jackson compares this moment to the dot-com boom of the late 1990s, where enthusiasm for a single technological trend drove valuations beyond reason. He warns that while AI has real applications and efficiencies, especially in replacing menial tasks, there will eventually be a “reckoning.”

Transcript

Doug McIntyre:One of the things that impresses me right now about what’s going on with AI is, is if you take some of the really big tech companies, now, I’ll take meta, Microsoft, Amazon, Oracle. They really do not trade on the fundamentals of their core businesses anymore. So if you said to me two years ago, what kind of stock is Microsoft? Why is it up or down, you’d tell me, well, they’ve got two business units, this and this. And depending on how those perform, you know, if we moved over to Amazon, it’s Amazon Web Services and it’s E-commerce. Go to Meta, it’s number of eyeballs and you know, on multiple products month, you know all this stuff about how many people they have on Facebook and Instagram and who goes there and you add that up and divide it by the ad revenue. Google was one number “search” that sort of, eventually you got YouTube. But as far as I’m concerned, those companies now trade primarily on their success or lack of success in the AI business, not on what you and I would consider was in some cases for decades, their core businesses and competence.

Lee Jackson:Right, right. No, I, I think you’re exactly right because I think, you know, it’s been three years and I had to even look this up ’cause I wasn’t exactly sure. It’ll be three years in November since ChatGPT came out, you know, and the huge and that kicked off the rally that we’re still in, despite the fact that we had a 20% correction. I mean, this has been almost a three year all out, you know, full speed ahead rally. And, you know, we’ve had our share of winners. I’m looking at run right now. Our, our valves had Applied Digital, which stopped, which stopped mining, uh, crypto to open data centers is now $28. We recommended it at six or something like that, a year or so. But we’re winners. I think you’re right. Everything’s getting an AI valuation. And so how, how are you a player in that?

Doug McIntyre:One of the things I don’t like about it is, is if AI has a problem, your big, big mega tech cap stocks all fall apart at the same time. If you and I were trading Amazon based on AWS and E-commerce and Microsoft based on cloud and you know their gaming platforms or something. Then you could say, well, listen, if e-commerce got into trouble, that doesn’t mean that Microsoft and Apple get hit. Now, those business units don’t carry the water for these companies valuations. For the first time in my memory, all of the major tech companies are traded on based on one premise, a single premise. And that is how do they do an artificial intelligence.

Lee Jackson:Right. Whereas 25 years ago, how will they do on the internet?

Doug McIntyre:And then eventually that moved over to e-commerce in the cloud, moved over to Facebook, and how many people visited your Facebook site and those things.

Lee Jackson:Well, I think, I think one of the issues that you see is that, is that it’s clearly helping and companies are starting to employ it as they unemployed workers because it’s, it’s taking care of a lot of menial tasks that you don’t have to pay somebody to do. But the interesting thing is, it’s like 25 years ago, I mean. I was there and I saw it all. ’cause I was at Bear Stearns during all of the, up until 2000. And then I went to Lehman Brothers and I was in the thick of it there because Dan Niles was the one making calls at Lehman Brothers there. And he top ticked everything. He top picked everything in terms of saying, oh, it’s time to go all in. It’s time to go all in. But, it’s similar. And that ran a long time. That really ran from like 97, 98, 99, it ran for three and a half, four years before it actually blew up. And, and I think there’s gonna be a reckoning here somewhere. I don’t think big tech will go out of business, but boy, they can get hit hard considering where they’re trading at.

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Sure, the funds will deduct operating expenses from the share price, but Schwab’s fees are quite low. Now, let’s take a closer look at three Schwab ETFs that you can strategically use to generate $10,000 or more in annual passive income.Schwab U.S. Dividend Equity ETF (SCHD)Loading stock data...The first $100,000 of a $300,000 investable cash account could be dedicated to theSchwab U.S. Dividend Equity ETF(NYSEARCA:SCHD). This fund has “Dividend” in its name, so you know it will appeal to passive income seekers.A diversified fund with 103 stocks in its holdings list, the Schwab U.S. Dividend Equity ETF provides portfolio exposure to established names across multiple economic sectors. Stocks on the SCHD ETF’s holdings list include dividend payers likeChevron(NYSE:CVX),Coca-Cola(NYSE:KO),Lockheed Martin(NYSE:LMT), andAltria Group(NYSE:MO).Granted, an annual operating fee (known as the expense ratio) will be automatically deducted from the fund’s share price. However, the Schwab U.S. Dividend Equity ETF’s expense ratio is ultra-low at just 0.06%, which equates to $0.06 per year for every $100 invested in SCHD.Best of all, the Schwab U.S. Dividend Equity ETF currently features a trailing 12-month (TTM) distribution yield (i.e., the fund’s historical dividend yield) of 3.67%. With a yield of that size, you’ll be a big step closer to reaching your goal of $10,000 in passive income per year. Schwab International Dividend Equity ETF (SCHY)Loading stock data...The next $100,000 of a $300,000 portfolio could be used to purchase shares of theSchwab International Dividend Equity ETF(NYSEARCA:SCHY). Whereas SCHD focuses on U.S.-based stocks, the SCHY ETF concentrates on non-U.S. businesses that offer high dividend yields.Don’t worry if you’re not experienced with non-U.S. investments. One of the benefits of ETF investing is that a fund management firm like Schwab can conduct thorough research. Then, the firm can carefully pick non-U.S. businesses for inclusion in an ETF like SCHY.The names on the holdings list of the Schwab International Dividend Equity ETF include Roche Holding(OTC:RHHBY), Vinci(OTC:VCISY), Wesfarmers Limited(OTC:WFAFY), andTotalEnergies(NYSE:TTE). You might not be familiar with the 142 stocks on the SCHY ETF’s holdings list, but that’s fine since the fund’s management did all of the due diligence on your behalf.It’s not a terrible idea to diversify your portfolio beyond the U.S., and you can easily achieve this with Schwab International Dividend Equity ETF. The fund only deducts an expense ratio of 0.08%, and the SCHY ETF’s eye-catching 3.76% TTM distribution yield should attract income collectors around the world.Schwab U.S. REIT ETF (SCHH)Loading stock data...Finally, to potentially achieve $10,000 in annual passive dividend income, the third $100,000 of a $300,000 account could be allocated toward theSchwab U.S. REIT ETF(NYSEARCA:SCHH). This fund includes 124 stocks in its holdings list, and it focuses on real estate investment trusts (REITs) but “excludes mortgage REITs and hybrid REITs.”At this point, you might wonder whether it’s safe to invest in REITs. Yet, this is another way to diversify your portfolio. Plus, the Schwab U.S. REIT ETF has picked out well-established real estate names likeRealty Income Corp.(NYSE:O), Simon Property Group(NYSE:SPG), Crown Castle(NYSE:CCI), and Welltower(NYSE:WELL).All of a sudden, real estate investing is easier than you ever imagined it could be. You’ll end up paying an annual expense ratio of 0.07% to hold this fund, but that’s a small fee in the grand scheme of things. After all, the Schwab U.S. REIT ETF instantly expands your portfolio into the REIT sector while bringing you substantial passive income.Speaking of which, the Schwab U.S. REIT ETF currently features a TTM distribution yield of 2.96%. 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Please view our fee disclosure to view a full listing of fees.Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. 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Stock Market Live October 3: S&P 500 (VOO) Rises on Government Shutdown Day 3

-->-->Key PointsThe U.S. Government shut down on October 1 and remains shut down October 3, with up to 750,000 government workers furloughed.Absent government workers to confirm this data in reports, it’s hard to say precisely how many workers are off the job right now.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor)-->-->Live UpdatesLive Coverage Has EndedGet The Best Goldman Sachs Live Earnings Coverage Like This Every QuarterGet earnings reminders, our top analysis on Goldman Sachs, market updates, and brand-new stock recommendations delivered directly to your inbox.Click Here - It's Free Thank you for subscribing! Keep an eye on your email for updates. By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you. You can unsubscribe at any time. For more information, please review our Disclaimer and Terms of Use.Friday Wrap-upOct 3, 2025 4:01 PMLive The Vanguard S&P 500 ETF closed at 615.18 Friday, flat for the day but up 1.1% for the week.Apple Still ShinyOct 3, 2025 12:52 PMLiveIn the absence of government news, Jefferies analyst Edison Lee is making headlines today downgradingApple(Nasdaq: AAPL) stock to underperform — but investors don’t care.“We raised our FY25E/26E/27E iPhone unit growth to 7%/1%/-1% from 5%/-3%/0%,” explains Lee. “Our muted outlook for FY26/27 is driven by 1) $100 price hike for iPhone 18 P/PM, and 2) cautious outlook of 18 Fold (12.5m units).”Lee lowered his price target on Apple stock to $205.16, but the stock is up 0.6% today. The Voo is up 0.5%.This article will be updated throughout the day, so check back often for more daily updates.The U.S. Government is out to lunch — and investors don’t care.On Day 2 of the Government Shutdown of 2025, theVanguard S&P 500 ETF(NYSEMKT: VOO) closed at a record high Thursday. As Day 3 prepares to get underway, the ETF is up another 0.1% premarket.With much of the workforce at federal agencies furloughed today, and the rest presumably just trying to keep up with work on a skeleton crew, there’s no new government data coming out to help the market today — but also no bad news getting published. True, yesterday Treasury Secretary Scott Bessent warned that the shutdown threatens us with “a hit to the GDP, a hit to growth and a hit to working America,” but until some data comes out confirming that, it kind of feels like it’s not happening, and investors remain blissfully ignorant of anything bad that’s happening to the economy.Well, except for one data point. Heading into the shutdown President Trump threatened massive layoffs of government workers, calling the shutdown an “unprecedented opportunity” to save money by cutting dead weight. And the Congressional Budget Office estimates we could see 750,000 federal employees furloughed, weighing on jobs data.If we ever get toseeany jobs data again, that is.  PredictionsIn the absence of data, what we do have is forecasts, andGoldman Sachs(NYSE: GS) CEO David Solomon just dropped a big one.“Markets run in cycles,” said the Goldman CEO at Italian Tech Week in Turin, Italy, on Friday. “And whenever we’ve historically had a significant acceleration in a new technology that creates a lot of capital formation, and therefore lots of interesting new companies around it, you generally see the market run ahead of the potential … there are going to be winners and losers.”Okay, give Solomon a ‘C’ for originality with that prediction. “Somewhere it’s going to rain today, and somewhere else it isn’t.” But the point remains true nonetheless. A lot of AI stocks have gotten very expensive this year, some of them are going to come back down, and investors should probably start to prepare for that eventuality.“I wouldn’t be surprised if in the next 12 to 24 months, we see a” stock market selloff, says Solomon.I wouldn’t be surprised, either.Wealthy Americans With $1m Or More: Avoid These 13 Retirement MistakesEven for wealthy Americans with $1m or more saved up, one wrong move in retirement could cost you years of financial security. The truth is, many investors make the same critical errors: Being too conservative, chasing “sure things,” or paying hidden fees. And those blunders can tank your hard-earned savings.Now you can learn the mistakes even experienced investors make — and how you can sidestep them before it’s too late — with this new guide: 13 Retirement Mistakes and How to Avoid Them from Fisher Investments. Fisher Investments has helped tens of thousands of investors retire comfortably since 1979. 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3 Ultra-Safe Dividend Stocks to Buy Now, If You’re Concerned About Volatility Ahead

Investors who find themselves awake at night thinking about their portfolios, fear not. I am too.The reality is that there are many red flags that have popped up in recent years that have now become too hard to ignore. Yes, inflation has come down from its 2022 peak, but it remains markedly above the Federal Reserves (notably arbitrary) 2% target. But it’s still elevated, at the same time that the jobs market has markedly weakened. -->-->Key PointsDividend stocks are an excellent option for investors concerned with the current macro backdrop to consider.Here are three of my top sleep-at-night picks I think long-term investors should consider form here.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor)-->-->Accordingly, the path forward for interest has grown increasingly uncertain of late, and the gyrations I’ve seen in the bond market make me shiver.But I still take the view that over the medium-term interest rates will more likely be lower than higher from here. Coca-Cola (KO)Loading stock data...Any stock Warren Buffett has held for decades is one I’d think is about as stable as they come. As it turns out, Coca-Cola (NYSE:KO) remains a staple of his portfolio, with the Oracle of Omaha originally purchasing his position way back in 1988. That’s a long time to hold a given stock, but that’s Warren Buffett’s investing style (and it’s one I’d certainly like to emulate).As is the case with many of Buffett’s picks, Coca-Cola has traditionally paid a rather hefty dividend yield, and that’s still true today. The company pays investors an annualized yield of approximately 3.1%, and this yield has spiked a bit higher of late thanks to a stock price dip over the course of the past few months.Now, KO stock is still higher than where it was during the April-driven market selloff, and there are reasons why long-term investors may be enticed to buy this dip and the relatively higher yield the carbonated beverage giant provides investors right now.I think the sheer amount of brand value Coca-Cola provides, as well as one of the most ardent and loyal customer bases, ensures revenue and earnings stability over time. Coca-Cola’s impressive balance sheet stability and its scale and size provide a defensive option for dividend investors looking to pull in a yield of more than 3% in this current environment. Johnson & Johnson (JNJ)Loading stock data...In the healthcare sector,Johnson & Johnson (NYSE:JNJ) is one of the largest U.S. giants, well-positioned for long-term growth and stability. Again, in this market environment, that’s something many investors are going to want to look for – truly defensive dividend stocks. With a 2.9% dividend yield, investors have the potential to not only create the kind of long-term passive income stream they’re looking for, but do so holding one of the most stable and consistent blue-chip growers in the S&P 500. Of note, and one of the things I think many other analysts and market participants continue to gravitate toward when it comes to JNJ, is the company’s rock solid balance sheet and credit rating. I’ve actually seen a number of articles recently discussing how the yields on Johnson & Johnson’s corporate debt are lower than the U.S. government. In other words, investors would rather own this company’s debt than that of Uncle Sam. Says something about the stability of this company relative to the current macro backdrop we find ourselves in.That said, given the yield investors can get on JNJ stock right now, the clear choice appears to be this company’s equity. Those thinking long-term can’t go wrong with this pick in my view, at least over a sufficiently long time frame. Fortis (FTS)Loading stock data...One of my more unique dividend picks I continue to pound the table on is a lesser-known utility company in Fortis (NYSE:FTS). That’s partly because this utility company is based in Canada, where it generates the vast majority of its revenue and earnings. However, in a world that is likely to be significantly reshaped by the rise of AI, one thing most investors can agree on is that we’re going to need a lot more energy. Fortis’ business model in providing electricity and natural gas utilities to millions of commercial and residential customers is one that’s about as steady as they come. And with a more than five-decade-long track record of hiking its dividend, Fortis is among the best options for investors seeking not only a robust and consistent passive income stream, but one that can grow and (hopefully) keep up with inflation over time.That’s the trick isn’t it – finding such companies that provide stable passive income, but also some level of inflation protection (with capital appreciation upside if this spending cycle continues). Fortis offers the best mix of all three, in my view. If You’ve Been Thinking About Retirement, Pay Attention (sponsor)Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. 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Trade Wars Could Push Market Down 20%

President Trump’s plan to impose large tariffs on many nations was the primary driver of the 20% drop in the S&P 500 that began on April 2 of this year. Among the largest tariff plans was to raise tariffs on China to 54%. Briefly, it was suggested that the China tariff would be 245%. That means America’s largest trade partners—China, Canada, and Mexico—faced a financial catastrophe that would deeply wound their economies and might push U.S. inflation back to the 9% level seen in 2022.SPY$665.17▲ $103.80(15.60%)1Y1D5D1M3M6M1Y5YMAX-->-->24/7 Wall St. Key Points:Last week, the U.S. president suggested the tariff on Chinese goods should be 100%.The effects on the U.S. economy of a trade war with China would be immediate and broad.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->Last week, Trump suggested the tariff on Chinese goods should be 100%.A Trade WarThe April announcements also raised anxiety about reciprocal tariffs. Agricultural goods sent to China accounted for a large share of farmers’ income. These also included mineral oil, electronics, and semiconductors.Exports to Canada included auto parts. Often, these were used to make vehicles that were sent back to the United States. Exports to Mexico included machinery and car parts.A trade war with China would have immediate and widespread effects on the U.S. economy. Companies like Walmart rely heavily on China. Walmart imports about 60% of its merchandise from there. Other retailers have similar numbers.China might punish U.S. companies there to pressure the U.S. government to get to the bargaining table quickly. The Chinese government could retaliate by limiting the activity of American companies that do business in the country. This would be wide-ranging and would hit companies like Starbucks and Walmart.Inflation crippled the U.S. economy in mid-2022. As the consumer price index hit 9%, Americans’ purchasing power evaporated. Since consumer activity is two-thirds of gross domestic product, the national economy could suffer turmoil.One reason the stock market reacts so violently to trade talk is that the president can change his mind from day to day. In this market, it is impossible to forecast the future of many companies and industries. The president’s plans can disrupt some days and be calm on others.The slow pace of tariff talks with China has upset President Trump. It is impossible to say whether he will change his tariff plans if those talks quicken.Chinese Companies Added to the U.S. Blacklist in 2025If You’ve Been Thinking About Retirement, Pay Attention (sponsor)Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:Answer a Few Simple Questions. Get Matched with Vetted Advisors Choose Your  Fit Why wait? Start building the retirement you’ve always dreamed of.Get started today! (sponsor)

Nvidia Just Became the First $4.5 Trillion Stock. How Long Before It Hits $5 Trillion?

-->-->Key PointsNvidia‘s (NVDA) $4.5 trillion valuation milestone underscores AI’s market power.NVDA’s 39% YTD gain projects a $5 trillion valuation in 109 days via simple compounding.Sustained growth drivers make stock price acceleration probable despite risks.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->Nvidia(NASDAQ:NVDA) crossed a historic milestone this week, becoming the first company to reach a $4.5 trillion market cap. This feat not only cements its position as the world’s most valuable publicly traded stock but also highlights the transformative power of artificial intelligence (AI) in reshaping global markets. NVDA stock closed at a value that propelled the total to $4.53 trillion, edging out competitors likeApple(NASDAQ:AAPL) andMicrosoft(NASDAQ:MSFT). The achievement sparked immediate market buzz, with trading volume spiking 15% and analysts upgrading targets amid renewed optimism for tech’s recovery. This surge caps a year of explosive growth, with shares up 39% year-to-date. Investors now eye the next barrier: $5 trillion. At the current pace, simple math suggests it could happen in just a few months. But what fuels this momentum, and is the timeline realistic?The Sprint to Semiconductor SupremacyNvidia’s ascent traces back to its dominance in graphics processing units (GPUs), essential for gaming, data centers, and now artificial intelligence. The AI boom, sparked by generative models like ChatGPT, has turned Nvidia’s chips into the backbone of the tech revolution. Demand for its H100 and Blackwell GPUs shows no signs of slowing. In its latest quarter, Nvidia reported revenue of $46.7 billion, up 56% from the prior year, with data center sales alone hitting $41.1 billion.This isn’t just hype. Partnerships with cloud giants likeAmazon‘s (NASDAQ:AMZN) AWS and Google Cloud ensure steady deployment. Nvidia’s CUDA software ecosystem locks in developers, creating a moat against rivals likeAdvanced Micro Devices(NASDAQ:AMD) andIntel(NASDAQ:INTC). Wall Street analysts project continued double-digit growth, with price targets averaging $214 per share — implying a market cap well above $5 trillion if met.Loading stock data...Crunching the Path ForwardTo gauge the $5 trillion timeline, consider the YTD 39% gain as an annualized rate. Starting from $4.53 trillion, reaching $5 trillion requires about a 10.4% increase. Using compound growth, that’s roughly 109 days, landing around mid-January 2026. This assumes steady compounding and ignores inherent volatility. Historical patterns show Nvidia’s stock often accelerates after earnings, meaning its November report could shave weeks off that estimate.Yet risks loom. U.S.-China trade tensions could inhibit exports, while supply chain bottlenecks for advanced chips persist.  A broader market correction might stall the rally. Still, Nvidia’s forward P/E ratio of under 30x earnings reflects investor confidence in sustained expansion.AI’s Unstoppable EngineBeyond numbers, Nvidia’s edge lies in AI integration. Its Omniverse platform simulates real-world physics for industries like automotive and robotics, while DGX systems power enterprise AI training. CEO Jensen Huang has positioned the company as the “picks and shovels” provider in the AI gold rush, supplying tools to leaders likeOpenAIandTesla(NASDAQ:TSLA).Competitors are scrambling.Broadcom(NASDAQ:AVGO) invests in custom AI chips, and startups likexAIbuild in-house alternatives. But Nvidia’s scale — producing over 90% of high-end GPUs — keeps it ahead. If AI adoption hits projections by McKinsey, which estimates a $13 trillion global impact by 2030, Nvidia stands to capture a hefty slice.Market caps fluctuate daily, but Nvidia’s trajectory points upward. Earnings beats, product launches, and AI tailwinds could compress the timeline. Conversely, geopolitical flareups or economic dips might extend it. Key TakeawayThis projection hinges on maintaining the 39% annualized pace — a mathematical exercise, not a guarantee. Volatility defines stocks, and Nvidia faces headwinds from regulation to competition. That said, recent investments in Intel and OpenAI, and given its AI moat and revenue momentum, crossing the $5 trillion threshold seems likely to occur sooner rather than later, potentially redefining its market leadership.If You have $500,000 Saved, Retirement Could Be Closer Than You Think (sponsor)Retirement can be daunting, but it doesn’t need to be. Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.(sponsor)

Direxion Daily Small Cap Bull ETF Lower As Small Cap Stocks Sink Today

-->-->Key PointsDirexion Daily Small Cap Bull ETF could rally sharply in the short term if small-cap stocks move higher.Yet, Direxion Daily Small Cap Bull ETF may bring unanticipated and disappointing long-term results.It sounds nuts, but SoFi is giving new active invest users up to $1k in stock, see for yourself (Sponsor)-->-->Direxion Daily Small Cap Bull ETF(NYSEARCA:TNA) is down 1.62% as this exchange traded fund (ETF) magnifies a 0.36% decline in its underlying small-cap index, the Russell 2000. Overall, the market is in a sour mood and it’s hitting the TNA ETF hard. Could a turnaround be in store, though?On a more favorable day, the Direxion Daily Small Cap Bull ETF has the potential to yield big results from small-cap stocks. In theory at least, TNA is an ETF that triples the price moves of a basket of small-cap stocks — but be sure to read the fine print before considering a share purchase.Irrespective of today’s pullback in small caps, some experts might envision a boom in small-cap stocks, and perhaps you want to juice some extra profits if there’s a bounce-back. There’s no denying that a bet on small-cap growth might bring you amazing results. On the other hand, there are nuances to the Direxion Daily Small Cap Bull ETF that could impact your portfolio, so don’t miss out on these crucial details.Take a Stake in Thousands of Stocks Buying just one or two small-cap stocks, which typically represent small or medium-sized businesses, can be a dangerous proposition. You can mitigate the risks, however, by diversifying and owning tiny positions in many different small-cap stocks.That’s the de-risking principle behind owning an ETF that follows the price movements of the Russell 2000, which is a basket of around 2,000 small-cap stocks. This index covers a variety of economic sectors, from financials and healthcare to real estate and consumer staples.Thus, with the Direxion Daily Small Cap Bull ETF you’ll get portfolio exposure to the thousands of small-cap stocks in the Russell 2000 index. A few of the stocks in the TNA ETF’s holdings list include Fabrinet(NYSE:FN), The Ensign Group(NASDAQ:ENSG), AeroVironment(NASDAQ:AVAV), andBrinker International(NYSE:EAT).It’s fine if you’ve never heard of those companies, or even if some of them fail. With a couple of thousand stocks in its holdings list, the Direxion Daily Small Cap Bull ETF can withstand the failure of some of these small-cap businesses.Extend Your Gains With TNAToday’s not a great day for small caps, but a turnaround could happen at any given moment. On some days, small-cap stocks generally do well and the Russell 2000 might go up 1%. That’s pretty good, but the Direxion Daily Small Cap Bull ETF is triple-leveraged so it could gain not just 1% but 3% on a day like that.And so, the TNA ETF offers advantages to its shareholders. First, it eliminates the need for stock picking since the fund’s management takes care of that. Second, it provides instant diversification into thousands of stocks.In addition, the Direxion Daily Small Cap Bull ETF enables a small account to possibly achieve the gains of a larger account. After all, on a day when the Russell 2000 shoots higher, a triple-leveraged ETF like TNA is designed to magnify your returns.The Costs of Easy LeverageBe aware, though, that there are drawbacks to the Direxion Daily Small Cap Bull ETF. For one thing, the easy leverage comes with a cost as the TNA ETF imposes an expense ratio of 0.99%. This equates to a drag of nearly 1% of the share price per year.Furthermore, the Direxion Daily Small Cap Bull ETF is only designed to triple the price move of the Russell 2000 index for a single day. If you hold the fund for more than a day, you may get unanticipated results.To provide an example of what could happen, imagine if a triple-leveraged fund rallies 3% but then declines 3%, or alternatively, if it falls 3% and then rallies 3%. Interestingly, the share price would end up slightly lower than where it started.This is a phenomenon known as volatility decay. It helps to account for the 14% year-to-date share-price gain of the Direxion Daily Small Cap Bull ETF.Loading stock data...That 14% gain might sound good until you do the math. This year so far, the Russell 2000 has rallied 11.5%. If the Direxion Daily Small Cap Bull ETF is triple-leveraged, shouldn’t it have rallied 3 x 11.5%, or 34.5%?That’s not how the fund works. Its role is to attempt to provide 3x the price move of the Russell 2000 index for a single day. Beyond that, the TNA ETF could be susceptible to volatility decay. Plus, the Direxion Daily Small Cap Bull ETF will continue to impose an expense ratio of nearly 1%.Tread Carefully With TNAToday’s pullback in the Direxion Daily Small Cap Bull ETF is a perfect example of what can happen when the market is in a rough mood. Small caps get hit hard, the Russell 2000 pulls back, and the triple-leveraged TNA ETF sinks quickly; trying to time a recovery is a difficult task, to say the least.Metaphorically speaking, we might compare TNA to TNT — highly explosive and dangerous if misused. Remember, the Russell 2000 could decline and if that occurs, the Direxion Daily Small Cap Bull ETF is likely to drop sharply.It’s also possible for the Russell 2000 to rally on any given day, and then the TNA ETF will probably spike higher. That positive effect might only last for a day, though; after that, the results of the Direxion Daily Small Cap Bull ETF can be unpredictable.Consequently, it’s wise to tread carefully with the Direxion Daily Small Cap Bull ETF. Treat it as an instrument for short-term trading, and carefully limit your position size with this fund. That way, you can use TNA responsibly and, if all goes well, turn a nice profit when small-caps make large moves.Want Up To $1,000? SoFi Is Giving New Active Invest Users up to $1k in StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(sponsor)DISCLOSURE:INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUEBrokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify.Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options [HYPERLINK: https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdfInvesting in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement [HYPERLINK https://www.sofi.com/iporisk/]. This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation [HYPERLINK https://support.sofi.com/hc/en-us/articles/360058602892-How-does-SoFi-allocate-IPO-shares].

Inside Costco Hides A Massive Dividend Dynamo

-->-->Key PointsCostco‘s (COST) modest 0.5% yield belies its long-term potential.The warehouse club’s yield on cost grows to 3.3% over 10 years for early investors, while special dividends add unpredictable but significant boosts.COST’s stable cash flow supports ongoing dividend growth.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->Costco(NASDAQ:COST) is a retail giant known for its sprawling warehouses, bulk discounts, and loyal membership base. But beneath its reputation for value shopping lies a lesser-known strength: a robust dividend program that rewards long-term investors. While the company’s dividend yield may appear modest at first glance, its consistent growth transforms it into a powerful wealth-building tool, making it a compelling investment for patient shareholders.The Power of Costco’s Dividend GrowthCostco’s dividend strategy is built on steady increases and occasional special payouts. The company has raised its regular dividend annually for over two decades, a testament to its financial discipline and strong cash flow. In 2025, the warehouse club’s annual dividend stands at $4.64 per share, offering a yield of about 0.5% based on its current stock price. At first, this yield seems underwhelming compared to high-yield stocks likeAT&T(NYSE:T) at 4.3% or evenTarget(NYSE:TGT) at over 5%. However, Costco’s secret lies in its dividend growth rate, which has averaged around 12% annually over the past decade.This consistent growth means that investors who bought Costco shares years ago are now earning significantly more on their initial investment. For example, a shareholder who purchased Costco stock 10 years ago when the dividend was $1.42 per share would now receive $4.64 per share annually. This growth pushes the yield on cost — a measure of the dividend relative to the original purchase price — to an impressive 3.3%. The result is a dividend that feels far more substantial than the headline yield suggests.Understanding Yield on CostYield on cost is a critical concept for dividend investors. It measures the current dividend payment as a percentage of the stock price at the time of purchase, rather than the current market price. For Costco, this metric highlights the power of holding a stock with consistent dividend increases. As the company raises its payout, the effective yield for long-term shareholders grows, even if the stock price rises. This dynamic makes Costco particularly attractive for investors with a decade-long horizon or more, which you should have.For instance, if you invested $10,000 in Costco 10 years ago at $140 per share, you’d own about 71 shares. Back then, the annual dividend of $1.42 per share would have generated $100.82 in yearly income. Today, with the dividend at $4.64 per share, those same 71 shares produce $329.44 annually. That’s a 3.3% yield on your original investment, far surpassing the 0.5% yield new investors see today.This growth showcases how Costco turns a modest starting yield into a dynamo over time.Loading stock data...A Special Bonus for ShareholdersCostco also occasionally sweetens the pot with special dividends. These one-time payouts, often tied to excess cash, have occurred five times since 2012, with the most recent in 2023 at $15 per share. While not guaranteed, these bonuses significantly boost returns for shareholders. For long-term investors, combining regular dividend growth with these periodic windfalls creates a compelling total return profile, blending income with capital appreciation.Why Costco’s Dividend ShinesCostco’s ability to grow its dividend stems from its resilient business model. The company generates nearly $5 billion in membership fees annually, providing a stable revenue stream that supports consistent payouts. Its low-margin, high-volume sales strategy ensures steady cash flow, even in economic downturns. Additionally, Costco’s global expansion and e-commerce growth position it to sustain dividend increases for years to come. For investors seeking a blend of growth and income, Costco’s dividend program is a hidden gem.If You have $500,000 Saved, Retirement Could Be Closer Than You Think (sponsor)Retirement can be daunting, but it doesn’t need to be.Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.(sponsor)

Wall Street Price Prediction: Tesla’s Share Price Forecast for 2025

After soaring in 2023 and 2024, shares ofTesla(NASDAQ:TSLA)were battered throughout Q1 2025. And while the stock performed marginally better in Q2, the largest U.S. EV-maker slid into Q3. Things have been looking better of late, but over the past five trading sessions, the stock lost 2.70% after losing 0.08% the five prior. Despite that stock slipping slightly over the past two weeks, its recent rally has brought it out of the red on the year with a YTD gain of 14.93%. However, since hitting its all-time high on Dec. 17, TSLA remains down more than 9%.Shareholders are hoping that the launch of Tesla’s Robotaxi can help the stock, which has seen increased volatility in the wake of abysmal Q1 and Q2 earnings and the ongoing fallout with the Trump administration. Global Tesla sales are looking weaker than they are in the U.S. Since launching in India in mid-July, Tesla has only received a paltry 600 orders. After several quarters of weakening momentum, Tesla’s deliveries are seeing a positive break in trend, according to Canaccord. Further, the firm expects Tesla to announce new electric vehicle models soon, which should help its global sales momentum. The new models will help alleviate any post-Q3 “cliff” in the U.S. after electric vehicle tax credits go away, Canaccord believes. Over the past decade, Tesla has suffered incredible losses that have shocked investors who had grown accustomed to the stock’s rapid appreciation over the past decade. The company’s meteoric rise has practically minted millionaires who jumped on the Musk bandwagon in the early goings. That’s certainly a move that’s come with some baggage and volatility along the way. But overall, it’s clear that Musk’s visionary status has rewarded shareholders since Tesla’s IPO on June 29, 2010. 24/7 Wall St.conducted analysis to provide more clarity. Let’s dive into whether Tesla’s troubles this year can be expected to continue, or if this is a top growth name that can rebound to new all-time highs and resume its march higher.-->-->Key PointsTesla deliverables are down year-over-year, and it continues facing headwinds in the U.S. and European markets.As CEO Elon Musk’s feud with President Trump continues, the stock has seen heightened volatility.If you’re looking for some stocks with huge potential, make sure to grab a free copy of ourbrand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.-->-->Tesla IncNASDAQ:TSLA$435.15▲ $422.09(97.00%)1YPre-Market1D5D1M3M6M1Y5YMAXKEY DATA POINTS−Previous Close$429.24Market Cap1.45TDay's Range$426.33 - $440.5152wk Range$212.11 - $488.54Volume71.56MP/E Ratio256.20Gross Margin6.34%Dividend YieldN/AExchangeNASDAQKey Drivers of Tesla’s Stock Performance1. Core EV Business:Tesla’s most important business line is unsurprisingly the company’s auto business. With sales of the company’s EVs down on a year-over-year basis, and margins also declining from historically high levels following the onset of the pandemic, investors will continue to assess the company’s future prospects in proportion to how the company’s core revenue and earnings driver is performing. 2. Autonomous Driving (FSD), Robotics and More:Tesla’s value can be ascribed to what many long-term investors view as a call option on some other key growth categories CEO Elon Musk continues to work on. Aside from the company’s core electric vehicle offering, Tesla’s energy business, its FSD platform, humanoid robotics endeavors, AI verticals, and other growth categories make this stock unique in terms of the breadth and number of potential catalysts investors can look to for future growth. Of course, the extent to which these endeavors deliver boosted margins (or increased CapEx) remains to be seen. 3. Macro and Political Environment:Like it or not, Tesla CEO Elon Musk has cozied up to president Trump in a big way. This move is one that’s been broadly cheered by the overall market, at least out of the gate. Tesla stock soared following Donald Trump’s election victory, though Tesla has since given up its gains since this pivotal event, and has trended lower for seven straight weeks following the election. We’ll have to see if the Trump administration brings forward the sort of regulatory environment so many investors had hoped for in 2025 and in the years to come. What Wall Street ThinksTesla’s stock price outlook for 2025 varies widely among analysts, reflecting uncertainties in production, market conditions, and EV advancements. Analyst price targets span a very wide range, with the most bearish analyst putting forward a $19.05 price target, and the most bullish suggesting this stock could head to $500 per share. Thus, there’s not really a true idea of where this stock is headed. And when investors think about the fact that many of these analyst projections are outdated, doing the math on where this stock could be headed over the course of the next year isn’t as easy as it seems. It’s worth noting that analysts remain largely bullish on the stock, though.However, given how Tesla has fallen from its peak, even if the company can hit this target over the next year, it’ll still have a ways to go to make it to a new all-time high. The thing about Tesla and other high-growth stocks is that I find analysts are often chasing the returns these stocks provide. Thus, I think it’s best for most investors to steer clear of using analyst price targets as anything other than guardrails. Indeed, Tesla is one company I think is worth doing one’s own DCF analysis on and coming to one’s own price target. Analysts’ Price TargetsIn October, Stifel raised its price target on Tesla to $483 from $440 while keeping its “Buy” rating. The firm cited progress with Tesla’s Robotaxi network and full self-driving software. Nonetheless, on Sept. 22, Mizuho raised its price target on Tesla to $450 from $375 while keeping its “Outperform” rating. More recently, Canaccord raised its price target on Tesla to $490 from $333 while keeping a “Buy” rating, citing data from 30 counties showing Tesla’s deliveries are rising.This summer, Barclays said Tesla’s Q2 earnings came in-line with estimates, highlighted by strong gross margins, but its near-term fundamentals are weakened on tax credit expirations, tariffs and reduced regulation credit sales. The “gulf” between the stock’s narrative and the company’s fundamentals has further widened, the analyst tells investors in a research note. Barclays believes Tesla shares are “increasingly disconnected from fundamentals.” Tesla’s fundamentals “remain choppy” and are likely to deteriorate in the coming quarters, contends Barclays. It keeps an “Equal Weight” rating on the shares with a $275 price target.In July, Goldman Sachs raised its price target on TSLA to $315 from $285, but maintained a “Neutral” rating after Tesla reported preliminary Q2 vehicle deliveries of about 384,000, which was down 13% year-over-year.  In June, Benchmark analyst Mickey Legg raised the firm’s price target on Tesla to $475 from $350, maintaining its “Buy” following the successful launch of Robotaxi. The firm believes the rollout demonstrates “a controlled and safety-first approach,” according to the analyst, who argues that winning over regulators and public opinion is “paramount and will allow a rapid scale up if achieved.” The company continues to see sales decline in the U.S. and abroad, resulting in a series of downgrades. Also in early June, Guggenheim said the company’s fundamentals “continue to deteriorate at an alarming rate,” with “soft” Q2 delivery trends. Guggenheim reiterates a “Sell” rating on the shares with a $175 price target. Tesla’s 2025 OutlookAs we move through 2025, analyst opinions on where Tesla could be headed do vary. Overall, Tesla’s stock performance in 2025 is expected to be shaped by production output, market trends and advancements in EV and battery technology. Analysts project a 17.5% revenue increase to $117.2 billion, driven by growing demand and energy sector expansion. Tesla’s 2025 deliveries are forecasted at 1.95 million units by Barclays, below Bloomberg’s consensus of 2.08 million and Tesla’s earlier estimates.Despite a 62.5% stock surge in 2024, an $80 billion market value drop raised concerns. Musk remains optimistic, expecting a 20% to 30% delivery increase, though management later emphasized a “return to growth.” Additionally, competition from Waymo and declining registrations in Germany, France and California present challenges. Tesla’s push into AI and autonomous driving, including plans for a Robotaxi launch, could be a game-changer, but the company recently saw its share of the EV market slip below 50% in California. To compound matters, the stock is losing favorability among the smart money. Institutional holdings for TSLA are down t0 47.91%.Tesla Stock 2025 Price TargetBased on Wall Street analysts’ estimates, the median one-year price target for shares of TSLA is $365.88, representing potential downside of 16.06% from its current price. Of the 38 analysts covering Tesla, the stock currently receives a consensus “Hold” rating, with 16 analysts rating it a “Buy,” 13 rating it a “Hold” and nine rating it a “Sell.” 24/7 Wall St.‘s 12-month price target for Tesla is also bearish at $352.99, which represents potential downside of 19.02% from the current share price. Those figures are based on the company seeing projected revenue growth climb from $112.091 billion in 2025 to $297.430 billion in 2030, alongside normalized EPS growth of $2.85 in 2025 to $11.61 in 2030.  "The Next NVIDIA" Could Change Your LifeNVIDIA has returned 250-fold in the past 10 years as artificial intelligence took off.But if you missed out on NVIDIA's historic run, your chance to see life-changing profits from AI isn't over.The 24/7 Wall Street Analyst who first called NVIDIA's AI-fueled rise in 2009 just published a brand-new research report named "The Next NVIDIA".The report outlines key breakthroughs in AI and the stocks ready to dominate the next wave of growth. The report is absolutely free. Simply enter your email belowGet Report Now » It's Free Thanks! We will redirect you shortly to the free report! By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you. 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Nvidia Stock Heading to $250? Is This Target Realistic?

It’s been a bumpier ride for shares of AI chip titanNvidia(NASDAQ:NVDA) over the past year, but the ride has been worth staying on, at least so far. With the stock up 50% in the past year or just over 31% year to date, the pace of gains has been relatively modest. Despite this, there are still more than a handful of bulls who view the nearly $4.5 trillion Magnificent Seven giant as having enough gas left in the tank to move the needle higher.Indeed, it’s still been a hot year of growth, but given where expectations stood going into 2025, that translated to a decent, but not meteoric, first three quarters of gains. In any case, the GPU top dog has a ton of capital to invest in initiatives well beyond its own to capitalize on the AI boom as well as other rising tech trends, such as the Omniverse, robotics, and even quantum computing. Indeed, whenever Jensen Huang remarks on the state of quantum computing, the stocks in the space tend to react massively. -->-->Key PointsNvidia stock might not be as scorching hot this year, but it’s tough to be anything but bullish as the firm invests in other AI bets.It might not be all too long before NVDA stock hits the $6 trillion market cap level, especially if the AI trade is ready to sprint into 2026.It sounds nuts, but SoFi is giving new active invest users up to $1k in stock, see for yourself (Sponsor)-->-->Nvidia has been making some big deals across the AI space of late. Don’t discount them.With a handful of notable investments made by Nvidia in recent months, including the $100 billion stake in ChatGPT maker OpenAI, it seems like Nvidia is well-equipped to capture more of the upside from the software side of AI. If Nvidia does continue to make more such strategic bets, it’s about time that investors think of the firm as more than just a GPU maker. Now, Nvidia already has a powerful software ecosystem that’s fuelled momentum in its hardware business.At the end of the day, you need good software and tools to make the most of the hardware. With the Nvidia Cosmos Platform showing early promise as an ecosystem ahead of the potential rise of physical AI, it seems like Jensen Huang and his team are already ready for the next wave and the wave after that. In any case, I think it’s Nvidia’s software lineup that helps spin the hardware flywheel as fast as it can go. With Wedbush Securities analyst Dan Ives recently setting his sights on a $6 trillion market cap and the next phase of the AI spending “wave,” I don’t think the current Street-high price target of $250 per share is unreasonable in the slightest. Perhaps the most striking thing that Ives said about Nvidia is that the firm may stand to benefit from a revenue “multiplier” effect from the amount of capital the GPU titan puts up. I couldn’t agree more.Perhaps it’s Nvidia’s latest spending spree that could help drive upward momentum in the shares until its next big product works its way into a future quarter.It’s not just about the OpenAI investmentIt’s not just the $100 billion bet on Sam Altman’s OpenAI that makes Nvidia an even more powerful force in AI. The company’s big bet onIntel(NASDAQ:INTC), I believe, is a fantastic deep-value bet that could pay off significantly as the sagging semi firm looks for help to get back on its feet. As Intel explores more investments from other tech titans across the AI scene, it’s looking like Intel’s future stands to be a lot brighter than just a few months ago. Undoubtedly, the big-league bets on OpenAI and Intel are going to be making headlines. However, it’s the deals that don’t get all too much coverage that also stand to be major difference makers over the long term. Take the relatively small $700 million Nscale deal or the slew of strategic bets under $1 billion (think LLM firms like Mistral AI and Cohere) the firm has made in recent years. Indeed, Nvidia has spread its chips quite nicely across the AI table. And with Jensen Huang likely giving his blessing to each one of the bets, I’d many of the smaller bets have the potential to stand out as a huge winner.Many analysts are still pounding the tableIt’s lonely to be in the camp that’s anything less than bullish these days, with Nvidia continuing to defy expectations while getting the AI investment crowd hyped up with recent investments. With Loop Capital hanging onto its $250 price target, which entails a 38% move from here, I’d be inclined to stay the course as the firm runs into what Loop sees as a “Golden Wave” as demand for AI chips and gear for data centers stays hotter for a while longer.It’s not just superior chips that could cause Nvidia to keep growing faster than its much smaller rivals. Smart investments (like in OpenAI, Intel, and smaller, lesser-known LLM makers) and powerful software also make Nvidia an undisputed AI champion. Though NVDA stock may very well be on its way to $250, investors shouldn’t expect a smooth ride higher, especially if AI bubble fears amplify with every up day in markets.Want Up To $1,000? SoFi Is Giving New Active Invest Users up to $1k in StockLooking to grow your money but unsure where to begin? 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Top Wall Street Analysts Predict These 3 Tech Stocks Will Surge 200%

-->-->Key PointsAnalysts believe these three tech stocks have multibagger upside potential.They sell software and hardware that align with current megatrends.These tech companies seem well-positioned to land big contracts.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->Tech stocks have delivered stellar returns over the past two and a half years, and gains that seemed outlandish back then have materialized and then some. Many believe this momentum may continue for years if Wall Street remains undeterred by concerns of an “AI bubble,” just like how investors didn’t bother with the Fed’s “irrational exuberance” warning in 1996.And many who didn’t listen to that warning ended up winning big in the end. Even the Dot Cum bubble’s implosion didn’t significantly bring down the Nasdaq below 1996 levels. If AI efficiency gains end up boosting the economy like the internet did by creating new avenues, further gains are certainly ahead.Analysts are making ambitious bets on where these tech stocks can go in the next year. None of these analysts has a crystal ball, and it wouldn’t be wise to trust price targets blindly. But, it’s still worth looking into if you are looking for multibagger gains. Here are three tech stocks with price targets implying over 200% upside:Redwire (RDW)Loading stock data...Redwire (NYSE:RDW)is a space company that sells space infrastructure components. This industry has been growing rapidly in recent years and has accelerated significantly in 2025, with the military increasingly becoming interested in augmenting its capabilities in orbit.There were just 102 orbital launches per year, and this figure soared to 259 launches in 2024. So far in 2025, there have been 215 orbital launches. It is very likely that the 2020s will be the decade that finally surpasses the 1970s space race figure of 1,233 orbital launches.Space companies are gaining big from this megatrend. The space sector is expected to. be worth $1.8 trillion by 2035.RDW stock is up 40% in the past year and has had some ups and downs along the way. Bulls believe it is far from its true potential. The consensus price target is $18.07, implying almost 101% upside potential from here. The higher price target comes from a Cantor Fitzgerald analyst at $28, which implies ~212% upside from here. This analyst had a 73.5% success rate at the time.If Redwire lands big contracts from the expanding space industry and executes, it’s very possible RDW stock gets there. In fact, the stock peaked at nearly $24 earlier this year.Datavault AI (DVLT)Loading stock data...Datavault AI (NASDAQ:DVLT)does two main things. It does data science by running a cloud platform that lets companies tag, value, and sell their data (or data-derived assets) as blockchain tokens. It sells computing software and has its hands on audio tech, or acoustic science.DVLT stock has historically been in a rough patch, but has done quite well recently. The stock broke out significantly in the past month, up over 230%. This surge puts the stock price just over $1, which is the Nasdaq minimum listing requirement.The company recently secured a $150 million investment from Scilex Holding Company to “Build Supercomputer and Launch Independent Data Exchanges”. It also received a “multi-million” resource commitment fromIBM (NYSE:IBM), “including engineering, technical sales, and quantum computing expertise, to support Datavault’s platform development and go-to-market growth”.Keep in mind that the entire market cap today is $203.7 million. If it keeps landing investments and contracts, a multibagger may be brewing.The consensus price target of $7 implies 542.2% upside potential. The highest price target is $11.MultiSensor AI Holdings (MSAI)Loading stock data...MultiSensor AI Holdings is likely the riskiest of the three stocks you can buy into. MSAI stock is still below the Nasdaq listing requirement, and a reverse stock split may happen to regain compliance.The company sells thermal, acoustic, vibration, and laser sensors, plus the cloud/edge software that turns the raw data into “fix-it-before-it-breaks” alerts for big industrial plants.The software business has the most potential here, but the company is still loss-making. If you want a lottery ticket on industrial AI with a real (but thin) installed base and a credible tech stack, MSAI stock is worth going for. Onshoring and tariffs may lead to more contracts in the future as companies rush to automate.The consensus price target of $2.5 implies 287.6% upside potential.If You have $500,000 Saved, Retirement Could Be Closer Than You Think (sponsor)Retirement can be daunting, but it doesn’t need to be. Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.(sponsor)