Artificial Intelligence pumped up the American stock markets in 2024 as Europe’s economy stumbled.
Investors in US companies could look forward to 2025. On the other hand, owners of European firms were forced to settle for smaller profits. The markets on both sides of the Atlantic had different paces.
In the USA, the Nasdaq gained 37.2% (in euros), while in Europe, the Stoxx Europe 600 rose by ‘only’ 6%. Even in the old continent, the differences between countries were significant, with a gain of 18.9% in Frankfurt and a loss of 2.2% in Paris.
Key Takeaways
- US vs. Europe: US markets outperformed Europe in 2024, with the Nasdaq up 37.2% (in euros) vs. Stoxx 600’s 6%. Frankfurt gained 18.9%, while Paris fell 2.2%.
- AI Boost: Tech growth, led by Nvidia (+189.3%), drove US markets, supported by AI investment and interest rate cuts.
- Economic Outlook: A soft landing in the US and pro-business policies bolstered optimism.
Table of Contents
Two factors supporting the strong rise of the American indices:
The American technology sector (+46.7%) was the driver of growth, stimulated by artificial intelligence (AI) and by the iconic semiconductor company, Nvidia (+189.3%), whose profits soared. The tech companies do not want to miss the digital revolution, and the early signs are that they will continue to invest heavily to expand AI in 2025.
Interest rate cuts in the USA and Europe also reassured the stock markets, which are very sensitive to the decrease in the cost of money. These cuts occurred after very aggressive increases aimed at combating rising inflation.
Why should you invest in American stocks? In the USA, the scenario of a soft landing for the economy was confirmed with the publication of good economic indicators. Consequently, the Federal Reserve (Fed) reduced the key rates to allow the economy not to enter into recession or slow down too much, which was positive for the stock markets. Donald Trump’s return to the White House gave even more visibility to the economic growth scenario, thanks to a program that favors the economy and companies (less regulation and tax cuts).
Find the Best Stocks to Buy in 2025
1. Accenture

A global leader in consulting and business services, Accenture is a more defensive stock thanks to its financial solidity, low business risk, and good geographic diversification.
The superior offer to the competition gives it a loyal clientele, recurring revenues, and pricing power. Profitability levels are high, and it has a dynamic growth profile, thanks to investment in consulting and services for the digitalization of companies and in AI, its new growth engine.
The last quarter’s results reached historic highs, and Accenture has Trump cards to continue gaining market share. The prospects are solid, with revenues from generative AI services having a lot of potential to help the group continue to increase revenues and profits.
2. Air Liquide

The French chemical company, a specialist in industrial gases, has an ambitious strategic plan in place to meet the needs of promising sectors, such as energy transition, hydrogen, health, electronics, and semiconductors.
Its solutions respond to the challenges of the energy transition, which has helped it win large projects, especially in Europe. The results show that the greater recurrence of its activities protects the company from the highs and lows of economic cycles.
Although not immune to the economic slowdown, Air Liquide is well positioned to benefit from the needs of AI, the energy transition, and digital and increase profitability and profits.
3. Amazon.com

The world’s largest online retailer, Amazon, offers a wide range of products and services for businesses and consumers. It is famous in online retail, but the growth engine and most profitable business is the cloud.
After a slowdown phase, this segment (2/3 of the operating profit), where the group remains the global leader, accelerated growth. Conversely, distribution activities in the USA (75% of the e-commerce division) grew less than expected, given the competition from the Chinese Temu and Shein.
Still, the group should disclose record profits in 2024, which should continue to grow more than 20% per year in 2025 and 2026. The share price set a new high in December but still has upside potential.
4. ASML Holding

The Dutch ASML Holding is the world’s largest manufacturer of semiconductor equipment and the European technology company with the highest market capitalization. The machines it produces are technologically complex, being almost monopolistic in its activity, which allows it to have significant pricing power and a comfortably high operating margin, despite having major clients such as TSMC.
The current weakness of the market, due to restrictions imposed by the US on China and the lower demand from some major clients, such as Intel or Samsung Electronics, penalized the share price, but ASML confirmed the targets for 2030 and is well placed to benefit from the growth of AI.
Even after the recent correction, the valuation of the share is significant but justified given the good growth prospects of the sector and the strong position the group has in the market.
5. BlackRock

The world’s largest asset manager, BlackRock, appreciated by 34.7% in 2024 (in euros) thanks to the publication of very positive results. In the third quarter, the group achieved record results, which exceeded forecasts, and managed a good capital inflow for its ETFs, where it is the undisputed leader, benefiting from its good market positioning and the rise of stock indices. The group is dynamic in launching new products for clients, such as ETFs that invest in bitcoin and funds that invest in alternative assets such as infrastructure or private equity.
The stock trades at 22 times earnings for 2025, a little above its historical average (19 times), but the valuation corresponds to the quality of the assets and their development potential.
6. Microsoft

The global leader in software and dominant player with Windows, Office, Azure, and LinkedIn, Microsoft has diversified its activities. It produces hardware devices (surface, tablets, and laptops) and acquired a stake in OpenAI, to benefit from the potential of AI and integrate new solutions into its various software programs. With a powerful ecosystem of activities and a broad and loyal customer base, profitability is good and the financial situation is solid. Revenues and profits have grown well, and the company continues to gain market share in the strategic cloud area against competitors Amazon and Alphabet.
It is a quality stock, with low risk and reasonably valued given the quality of its fundamentals and the current dynamics.
7. Novartis

The innovative treatments of the Swiss pharmaceutical company Novartis continue to show dynamism, and the company has one of the most promising product pipelines in the industry, focusing on innovative products protected by patents.
The company raised its annual growth target from 5% to 6% until 2028. To achieve this, it bets on its main existing products on the market, such as Kesimpta for sclerosis and cancer drugs Kisqali and Pluvicto, despite facing the loss of the patent for Entresto (2025 in the USA and 2026 in Europe).
The group plans to submit about 15 approval applications for promising treatments by 2026 and wants to continue to strengthen its product line via acquisitions.
8. Sanofi

Despite having had a complicated year in 2024, the French pharmaceutical company benefits from the success of its main product, Dupixent (asthma and eczema), whose patent expires in 2030.
The increase in R&D spending impacted profitability but will allow the launch of new products, with the group planning to make 19 approval applications in 2024/2025. In 2025, profits should recover, after having been affected by restructuring costs in 2024, and the focus on developing several products will remain.
Sanofi should still divest part of its non-prescription drug business, Opella, focusing on innovative drugs and vaccines. Despite having to find more star products by the end of the decade, the group has a good pipeline of treatments.
9. Schneider Electric

Schneider specializes in electrical equipment for energy management and industrial automation.
With a dynamic portfolio of activities and exposure to sectors with high growth potential, such as data centers, where it recently acquired the American company Motivair Corporation, AI, and the energy transition, the French group acquired software companies for data collection, aiming to strengthen its strategy of offering good energy efficiency solutions to customers. The acceleration of digitization, the expansion of smart buildings, the interconnection of electrical networks, and especially the growth of data centers and AI will boost the sales of its software. The group set ambitious targets until 2027, and its more technological profile opens up good prospects.
The stock is trading at 27 times the expected earnings per share for 2025, a high level, but justified given the good positioning of the group and favorable future prospects, despite the unexpected change of its CEO.
10. Zoetis

The American company Zoetis is a world leader in animal health, operating in two main business segments: pets and livestock.
The group benefits from the growing importance of pets, operates in a non-cyclical sector, which reduces the risk of the title, and has a good product portfolio and a high level of innovation in a rapidly growing market. The company will continue to benefit in the future from the growth of the animal market (70% of sales), which is very resilient, as pet owners are increasingly sensitive to their well-being and consider their health care a priority over other expenses.
The valuation ratios of the stock are a bit high, but they are justified given the quality and good prospects of Zoetis.
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