Stocks are entering 2025 on somewhat shaky footing.
After surging to a series of record highs following Donald Trump’s victory in the presidential election, U.S. equities wavered in early December and stumbled further after the Federal Reserve dialed down its forecast for interest-rate cuts. The Dow Jones Industrial Average posted its worst monthly performance in over two years in December, while the S&P 500 registered its biggest loss since April. The Nasdaq Composite managed to eke out a small gain for the month.
Wall Street is generally optimistic about the outlook for stocks in 2025, but uncertainties abound, from the path ahead for interest rates to the impact that Trump’s policy agenda will have on the economic outlook.
Below, we look at a few of the stocks that we think investors would be wise to watch in January.
Nvidia
Nvidia (NVDA) Chief Executive Officer (CEO) Jensen Huang will kick off the annual Consumer Electronics Show (CES) in Las Vegas with a keynote speech on Jan. 6.
Huang is expected to highlight how Nvidia’s semiconductors are powering some of the most advanced products being shown off at the conference. Huang could also take the opportunity to speak about Nvidia’s Rubin chips, expected to launch in 2026, or demand for its Blackwell system, its most advanced system currently available.
Huang has said Blackwell is in full production and Nvidia likely would deliver more units in 2024 than it had forecast. Still, the company has struggled to meet what Huang has called “insane” demand.
Regardless of what Huang says at CES, Nvidia will remain a key stock to watch throughout the year. Shares rose 170% in 2024, after nearly tripling in 2023. Analysts at Morgan Stanley, Bank of America, and Bernstein have named it a “top pick,” citing confidence that Blackwell demand will fuel another year of explosive growth.
Tesla
Tesla (TSLA) stock has been on a tear since the U.S. election amid investor optimism that CEO Elon Musk’s close relationship with President-elect Trump will benefit the EV maker. Shares have risen 60% since the election, though they finished the year on a four-session losing streak.
The stock, which trades with one of the highest P/E multiples in the S&P 500, could be tested when Tesla reports full-year deliveries early in January and fourth-quarter earnings near the end of the month.
Tesla’s EV business has been weighed on by higher-than-expected interest rates and sluggish demand all year, and the last quarter is unlikely to be much different. Plus, some policies proposed by Trump and endorsed by Musk—like the elimination of the $7,500 EV tax credit—add uncertainty to Tesla’s outlook.
Analysts on the company’s earnings call likely will have questions for Musk about the outlook for Tesla’s robotaxi service and his new role as efficiency advisor to Trump. Granted, they may not get a chance to ask—on the company’s last earnings call, Musk and Co. answered several handpicked questions from investors and left time for just two analysts’ questions.
Intel
Intel (INTC) had a very rough year—one that recently prompted Bernstein analysts to advise investors to “stay far away.” The stock lost 60% of its value in 2024.
Executives surely will try to strike a more upbeat tone when Intel reports earnings in late January, which will be the chipmaker’s first business update since the departure of CEO Pat Gelsinger.
Gelsinger kicked off his four-year tenure with a turnaround plan that included massive investments in manufacturing facilities and the launch of a dedicated foundry business. The plan proved to be slow and expensive to implement, a source of tension between Gelsinger and the board. Directors also bristled at how little progress the company made in developing artificial intelligence (AI) chips to compete with market leader Nvidia.
Analysts have speculated that Gelsinger’s departure could lead the company to split its chip design and manufacturing businesses, but interim co-CEO David Zinsner said that decision would fall to Intel’s next leader.
While the company is unlikely to update investors or analysts on its search for a new CEO, January’s quarterly report will still be an important one as it attempts to assure investors a turnaround is coming.
The Trump Trade
Stocks broadly rallied in the wake of Donald Trump’s election victory in November as Wall Street anticipated a pro-business administration that would roll back regulations and cut taxes. But some industries have been lent an extra boost by specific policy priorities, and investors would be wise to keep an eye on those stocks as Trump returns to the White House.
Cryptocurrency stocks, including crypto exchange Coinbase (COIN) and bitcoin proxy MicroStrategy (MSTR), have soared since November, boosted by Trump’s promise to make America a crypto haven.
Likewise, shares of prison and detention center operators GEO Group (GEO) and CoreCivic (CXW) have surged on the expectation of a crackdown on undocumented immigrants. GEO Group Executive Chair George Zoley said on the company’s most recent earnings call that Trump’s re-election was a “potential sea change” for the company, according to a transcript provided by AlphaSense. GEO Group is the largest contractor of U.S. Immigration and Customs Enforcement (ICE).
The days after Trump’s Jan. 20 inauguration could be a test of both his commitment to the campaign promises that have lifted these stocks, and how much has been priced into the “Trump Trade.”
Delta Air Lines
On Jan. 10, Delta Air Lines (DAL) is set to become the first major U.S. airline to report its full-year results.
Travel demand has moderated from its post-pandemic surge, but remained surprisingly resilient in the face of high inflation and economic uncertainty. Airline stocks have soared in recent months. The U.S. Global Jets ETF (JETS) has risen more than 50% since early August, and Delta stock has climbed more than 60% in the same period.
Delta’s fourth-quarter results could be a test of that rally. The carrier’s profit and outlook have fallen short of Wall Street’s expectations in each of the last two quarters, dealing two short-term blows to its stock price.
Nonetheless, analysts are bullish. All 13 Delta analysts tracked by Visible Alpha have a “buy” or equivalent rating on the stock.