Three Swiftly Expanding Shares Globally in the Year 2025
With the year's end approaching and 2025 just around the corner, Wall Street and investors have little to grumble about. When the markets closed for Christmas on Dec. 24, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite had seen massive increases of 15%, 27%, and 33% respectively for the year.
The central theme for the second year of this ongoing bull market was the dominance of growth stocks. The surge of artificial intelligence (AI) is just one example of investors being smitten with high-growth, cutting-edge businesses that are revolutionizing the corporate world.
In 2025, some of Wall Street's most exponentially growing companies are projected to deliver triple-digit revenue growth. It's essential to remember that significant sales growth doesn't necessarily mean a stock is a wise investment.
Lucid Group: Anticipated revenue growth of 127% in 2025
The first high-performance growth stock predicted to see triple-digit revenue growth next year is electric-vehicle (EV) manufacturer Lucid Group (LCID -5.75%). According to expert predictions from Wall Street, Lucid is on track to boost its revenues to $1.74 billion in 2025 from an estimated $766.8 million this year.
One of the primary drivers for this growth is the initial delivery of its second EV, the Lucid Gravity SUV, in the latter half of 2025. Orders for the company's latest vehicle began on Nov. 7. Lucid is aggressively expanding its production capacity to satisfy Gravity orders, which is a less expensive and more practical vehicle compared to Air, the company's sedan.
Lucid Group is also financially strong. It has received investments from Saudi Arabia's Public Investment Fund and appears to have enough capital to extend its cash runway well into 2026. This should allow Lucid enough time to launch Gravity, increase sales of its latest EV, and improve certain aspects of its production efficiency.
However, Lucid has missed on what looked to be its most significant competitive advantage. With Tesla downplaying the importance of Model S and focusing on the less expensive Model 3 sedan, the luxury sedan market appeared ripe for the taking by Lucid Air. Unfortunately, Lucid's cash burn rate was too high for management to ignore, causing the company to slow its expansion pace. Lucid Air simply hasn't lived up to its initial expectations.
Although reducing expenses on costs is a positive move, Lucid Group isn't particularly close to becoming profitable either. Though the launch of Gravity will help scale revenue and slightly reduce losses, the consensus still predicts Lucid to lose around $2.7 billion in 2025. In other words, Lucid hasn't demonstrated to Wall Street or investors that it has a sustainable business model yet.
With the company likely needing additional capital raises before it has a chance of becoming profitable, Lucid Group seems like a stock to steer clear of for now.
Riot Platforms: Anticipated revenue growth of 113% in 2025
The second high-octane growth stock that Wall Street expects to deliver triple-digit revenue growth next year is Bitcoin (BTC -1.47%) mining company Riot Platforms (RIOT -5.28%). The consensus estimates Riot to generate $782.5 million in revenue in 2025, which is an 113% increase from the company's projected revenue this year.
Bitcoin is the most significant cryptocurrency by market cap and has had an outstanding year, having recently surpassed $100,000. Investors backing Riot Platforms expect that cryptocurrency miners will benefit from Bitcoin's rising price.
Riot uses farms of graphics processing units (GPUs) to solve complex equations and validate transactions on Bitcoin's network. Being the first to solve a group of transactions, known as a block, entitles companies like Riot to a reward. The current block reward is 3.125 Bitcoins. This means every time Riot solves a block, it's earning more than $300,000 in value (i.e., the value of 3.125 Bitcoins).
Riot Platforms has made aggressive moves to acquire GPUs to increase its hash rate, which is essentially the computational power of its hardware. The higher the hash rate, the greater the perceived likelihood of receiving Bitcoin block rewards.
However, despite Bitcoin soaring to a new high, Riot Platforms hasn't crossed the threshold to profitability. Based on data from MacroMicro.com, average Bitcoin mining costs have climbed in tandem with the price per token of the world's largest digital currency, leaving little room for substantial margins. A seven-figure price for Bitcoin provides no guarantee that Riot will become profitable on a consistent basis.
Furthermore, the halving of Bitcoin block rewards will make Bitcoin mining increasingly challenging and expensive for Riot Platforms. This is a high-cost, low-margin business model that doesn't appear to be sustainable for the long term.
Serve Robotics: Anticipated revenue growth of 598% in 2025
A third company that's projected to be one of the world's fastest-growing stocks in 2025 is AI-powered delivery robot provider Serve Robotics (SERV -6.85%). Wall Street's consensus estimates Serve to generate $13.31 million in revenue next year, which represents nearly a 600% increase from what it's expected to report for 2024.
Robotics Services gained prominence among AI-centric investors around mid-July, which was when tech giant and AI enthusiasm symbol, Nvidia, disclosed that it had transformed a debt obligation into 1,050,129 shares of Robotics Services equity. Despite Nvidia not having a reputation as a significant investor, the move to take a common-equity stake in an early-stage enterprise is bound to excite interest, particularly considering that Nvidia is the foremost supplier of hardware for AI-accelerated data centers.
Robotics Services is currently in the phase of expanding its food-delivery robot tests in Los Angeles and aims to establish itself in the Dallas Fort Worth market by mid-2025. The company also has an agreement with Uber Eats to commission 2,000 fresh delivery robots by the year's end.
To fuel its geographic expansion and the growth of its AI-driven delivery-robot network, Robotics Services has introduced an at-the-market financing program and ended September with a cash reserve of $50.9 million and zero debt. It's widely anticipated that selling stock will serve as a crucial funding source for Robotics Services as it expands its operations and ventures into novel markets.
However, with a valuation of $626 million, Robotics Services seems suspiciously overvalued, given that its entire business model remains in its experimental stage. The firm generated barely $183,000 in combined delivery service revenue and branding fees during the third quarter and racked up an operating loss of more than $8.4 million. It remains to be seen how much longer investors will be left questioning the potential viability of food-delivery robots as a commercial proposition.
Although Robotics Services can boast of being one of Nvidia's few publicly-traded investments, its shares appear to be overinflated, given the numerous variables that remain uncharted territory.
Investors are keen on putting their money into high-growth companies predicted to deliver triple-digit revenue growth in 2025. Lucid Group, an electric-vehicle manufacturer, is anticipated to boost its revenues by 127%, with the launch of its Lucid Gravity SUV and increase in production capacity. However, despite showing promising growth, Lucid Group isn't close to becoming profitable and may require additional capital raises.
Riot Platforms, a Bitcoin mining company, is also expected to generate 113% more revenue in 2025, benefiting from Bitcoin's rising price. However, the high cost of Bitcoin mining and the upcoming halving of Bitcoin block rewards make Bitcoin mining increasingly challenging and expensive for companies like Riot Platforms.
