As we approach the new year, investors are looking for stocks that have the potential to deliver significant gains in 2025. Two Nasdaq-listed companies, Marvell Technology and Meta Platforms, stand out as strong contenders for impressive growth in the coming year. Let's dive into the key trends, competitive advantages, and catalysts driving their expected growth.



1. Marvell Technology (MRVL)
Marvell Technology is a leading provider of high-performance computing and storage solutions, with a strong focus on artificial intelligence (AI) and data center technologies. The company's custom AI chips are in high demand due to their cost-effectiveness and performance, with Amazon adopting Marvell's Trainium 2 custom AI processor for its data centers. This demand is expected to grow, with Marvell expecting to sell $1.5 billion worth of AI chips in the current fiscal year and at least $2.5 billion in fiscal 2026.



Marvell has also expanded its strategic relationship with Amazon Web Services through a comprehensive multi-generational five-year agreement. This agreement encompasses a broad range of Marvell's data center semiconductors, including custom AI products, optical DSPs, active electrical cable DSPs, PCIe retimers, data center interconnect optical modules, and Ethernet switching silicon solutions. This renewed agreement will significantly increase the volume of business between the two companies.

Marvell estimates that its total addressable market (TAM) in data centers will grow to $75 billion in 2028 from $21 billion in 2023. This growth presents a significant opportunity for Marvell to drive incremental growth in the long run.

1. Meta Platforms (META)
Meta Platforms, the parent company of Facebook, Instagram, and other platforms, is well-positioned to benefit from the expected growth in digital ad spending. According to a report by Zenith, overall social media advertising spending is projected to grow at a mid-teens percentage rate annually between 2021 and 2024. This growth leaves Meta room to grow its share of the market.



Meta Platforms has reported strong revenue growth in recent quarters. In the first nine months of 2024, Meta's revenue increased by 22% to $116.1 billion, and its fourth-quarter (Q4) revenue guidance of $46.5 billion suggests that Meta will finish the year with a top line of $162.6 billion, representing a 20.5% increase over 2023. Analysts expect Meta's top line to grow at double-digit rates in 2025 and 2026, indicating that it is expected to outpace the growth of the digital advertising market.

Meta Platforms is working on better ad targeting and performance measurement to improve the precision of its ad targeting. While it may not be able to get back to the level of targeting precision it achieved prior to Apple's move to enhance users' data privacy, I'd expect improvement on that front over time.

In conclusion, Marvell Technology and Meta Platforms are two top Nasdaq stocks that have the potential to deliver significant gains in 2025. Their strong competitive advantages, combined with the growing demand for AI chips and digital advertising services, make them well-positioned to capitalize on key trends in the tech industry. As an investor, it's essential to stay informed about these trends and consider adding these stocks to your portfolio before they skyrocket in the new year.