Top Two Dow Jones Shares to Bolster Your Profits Significantly by 2025
The stocks enlisted in the highly selective Dow Jones Industrial Average showcase some of the most prominent businesses worldwide. These are corporations that boast a rich history of providing lucrative growth and returns to investors.
However, there are a handful of growth stocks within this prestigious group that are especially noteworthy for their impending growth potential. Here are two stocks I'd wager will surpass the average performance of Dow Jones stocks in 2025.
1. Amazon
Amazon (AMZN 2.40%) has delivered significant wealth creation opportunities for investors over the years, thanks to its ability to attract millions of faithful customers to its online marketplace. One compelling reason to consider investing in the stock now is the potential of its cloud service business.
Amazon Web Services (AWS) is the foremost provider of enterprise cloud services. Although revenue from this division makes up a minor fraction of Amazon's annual revenue, it generates the majority of the company's operating profit. With AWS revenue increasing by 19% year over year during the third quarter, Amazon enters the new year with a strong momentum.
The stock hit new highs following the third-quarter earnings report and is poised to outperform other Dow Jones stocks in 2025. Contributing factors include accelerating growth from AWS, coupled with cost-cutting measures being implemented in Amazon's retail business. As a result, Amazon's trailing 12-month free cash flow more than doubled year over year to reach $47 billion.
AWS continues to launch new AI tools for customers. Amazon claims it has unveiled more machine learning and generative AI features than other cloud leaders, and the results are evident. Amazon attributes the revenue it generates from AI as growing at triple-digit rates year over year.
Amazon's long-term earnings growth estimate, based on analyst estimations, currently ranks third among Dow Jones stocks. The consensus estimate anticipates Amazon's earnings increasing by 21% annually over the subsequent years, signaling that Amazon shares are primed to surpass the Dow Jones in 2025 and beyond.
2. Nvidia
Nvidia (NVDA -1.68%) is the leading supplier of graphics processing units (GPUs). Its inclusion in the Dow on Nov. 8, in place of Intel, indicates its growing importance to the economy as more businesses embrace AI services.
You can't train AI models without GPUs. This high demand for Nvidia's chips has exceeded supply over the past few years, helping to boost the company's profit margins and share price.
The chipmaker reported a net income of $53 billion from $96 billion of trailing 12-month revenue during the fiscal second quarter. That is an impressive profit margin for a leading semiconductor company. With revenues growing at a rapid pace, Nvidia will be well-positioned to deliver more profitable growth and returns to investors next year.
Its upcoming earnings report on Nov. 20 will provide more information about its momentum heading into 2025. On the previous earnings call, management mentioned that fiscal third-quarter revenue would be driven by existing chip products as well as early samples of its new Blackwell chips designed to handle the most demanding AI workloads. These chips are expected to fuel revenue growth in the upcoming year.
Nvidia can maintain strong revenue growth in the near term due to the scarcity of AI chips. Leading cloud service providers such as Amazon are among its major customers, and these companies are struggling to meet the growing demand for their services. This trend is expected to continue to benefit Nvidia.
With another earnings report scheduled for Nov. 20, it may be wise to wait until after the fiscal third-quarter 2025 report to purchase Nvidia shares, as earnings news can result in share price volatility. However, over the long term, analysts predict the company will report annualized earnings growth of 35%, placing it among the Top Dow Jones stocks. The stock is currently trading at a forward price-to-earnings ratio of 36 for the next year's earnings estimate, which could support superior returns in the following calendar year.
In the context of investing, Amazon's robust cloud service business, specifically Amazon Web Services (AWS), is expected to drive the company's growth, potentially making Amazon shares outperform other Dow Jones stocks in 2025. Furthermore, Nvidia, known for supplying graphics processing units (GPUs), has been adopted by numerous businesses embracing AI services, leading analysts to predict annualized earnings growth of 35% for the company, making it a strong contender among the Top Dow Jones stocks.
