It sounds like you’ve got a solid strategy in mind for 2025, and your picks in the S&P 500 are intriguing! Let’s break down each one:
-
Amazon (NASDAQ: AMZN): Amazon’s 50% rise this year is impressive, and it’s clear why you’re bullish. The company’s AI initiatives and foray into the AI chip space are key moves. If Amazon can continue to grow its AWS (cloud) and AI services, it could offset any potential slowdown in consumer spending, especially with the chip development side providing a more diversified revenue stream. The valuation seems reasonable with a P/E under 40, which still leaves room for growth given Amazon’s innovation potential.
-
KLA Corp (NASDAQ: KLAC): I like your pick of KLA as a “picks-and-shovels” play in the semiconductor sector. The company’s role in chip quality and production efficiency puts it in a strong position as the demand for semiconductors continues to rise. The expected high earnings growth and relatively low P/E ratio make it an attractive option. The China exposure risk is worth monitoring, but as you said, the company’s critical position in the supply chain gives it staying power.
-
Nasdaq (NASDAQ: NDAQ): Nasdaq offers a solid bet on the continued growth of the tech sector and the stock market as a whole. If the IPO market picks up, that could give Nasdaq a significant boost in revenue. With a P/E under 25, it’s reasonably priced for a company that plays such a crucial role in the financial ecosystem. Long-term, Nasdaq has strong growth potential, especially with its diversified portfolio of services in data, indexing, and analytics.
Given the strong fundamentals and growth outlook for these companies, they seem like great picks for a Stocks and Shares ISA in 2025, especially if you’re looking to leverage the growing tech sector and innovative industries. It’s also great to see that you’re thinking long-term, as tech and semiconductors could be at the heart of the next major market cycles.
Do you plan to hold these stocks for the long run or are you looking to adjust your positions based on market conditions as we move through 2025?
