The U. S. stock market has performed strongly in 2024, with the S&P 500 returning about 25% as the year ends, largely fueled by the technology sector, particularly AI-driven stocks. Market volatility increased in December due to the Federal Reserve's fewer-than-expected interest rate cuts anticipated for 2025. Despite these challenges, some fundamentally strong stocks, including Nvidia, AMD, and Alphabet, remain noteworthy for 2025. **Nvidia:** Nvidia has excelled in 2024, primarily due to its AI-optimized ecosystem. Its revenue surged 94% year-over-year to $35. 1 billion in its fiscal Q3 2025, driven by a 112% growth in its AI-focused data center segment. Demand for its Blackwell systems supports continued growth, and Nvidia benefits from its position in the inference market and broad adoption of its enterprise AI software by companies like Salesforce and ServiceNow. Its robust growth catalysts make it a promising investment for 2025. **Advanced Micro Devices (AMD):** As a leading AI chipmaker, AMD is poised for significant benefits in the expanding AI market, projected to reach $500 billion by 2028.

The company’s data center revenue increased 122% year-over-year to $3. 5 billion, bolstered by its Instinct GPUs and EPYC CPUs. AMD expects $5 billion in data center GPU revenue for 2024, up from $4. 5 billion previously predicted. With strong partnerships like Microsoft and Meta Platforms, and enhanced GPU performance, AMD's growth prospects remain solid, with analysts predicting a 26. 88% revenue rise in 2025. **Alphabet:** Alphabet has strengthened its AI presence, despite facing challenges such as antitrust issues and Department of Justice rulings. Google leads the global search market with an 89. 9% share and has expanded AI features in Search to over 100 new regions. This expansion boosts user engagement, with Google Search revenue up 12% in Q3 to $49. 4 billion. Google Cloud is also thriving, with revenue up 35% to $11. 4 billion and operating income rising 631%. These factors render Alphabet an attractive choice due to its AI-driven search leadership and cloud growth.