Investors Eye Growth Stocks Ahead of Year-End Rally

NEW YORK, NY — Investors are focusing on promising stocks as 2025 comes to a close. Notable mentions include SoundHound AI, Nvidia, and Taiwan Semiconductor Manufacturing. As the market anticipates a year-end rally, many are looking to position themselves for potential gains in 2026.

SoundHound AI has gained attention recently, showing a 68% year-over-year revenue increase in Q3 2025. With a current market value of approximately $5 billion, its innovative voice AI technology is used widely in the automotive and restaurant sectors. Despite facing losses, analysts predict a bullish outlook, estimating a potential 50% upside for the stock over the next year.

Nvidia, on the other hand, has established itself as a leading player in the AI chip market. The company’s revenue more than tripled year-over-year in the third quarter, with significant growth attributed to its focus on AI data centers. With a market cap around $434 billion and a recent forward P/E ratio below its five-year average, Nvidia continues to thrive.

Taiwan Semiconductor Manufacturing (TSMC) is the largest chipmaker globally, providing essential support to companies like Nvidia. It has shown average annual gains of nearly 25% over the past 15 years, driven by its advanced manufacturing capabilities. TSMC is also innovating with new chip technologies expected to reduce power consumption for AI applications.

Investor sentiment is shifting as worries about AI valuations surface. Philippe Laffont‘s Coatue Management trimmed its positions in AI companies like CoreWeave and Nvidia amid concerns over growing competition and regulatory scrutiny of AI procurement.

Still, Laffont also invested in recently public tech companies, emphasizing innovative potential in the sector. With self-driving cars and AI technology becoming increasingly prevalent, SoundHound and TSMC stand out as long-term growth investments.

As the holiday shopping season approaches, analysts recommend considering these growth stocks for long-term portfolio strategies.