GET IN EARLY! My Top 3 Stocks To Get Rich in 2025 (Without Getting Lucky)

the key to finding great stocks before everyone else is understanding a company's products not just their profits huge growth happens when a company has the perfect product for a quickly growing Market Tesla made investors Rich by Conquering the quickly growing EV market and Nvidia is making millionaires as their data center gpus power the quickly growing AI market and in this video I'll highlight a few stocks in a different Market that's growing so fast that it doesn't even matter matter which company comes out on top that's a great way to get rich without getting lucky your

time is valuable so let's get right into it first things first I'm not here to hold you hostage so here's everything I'm going to cover up front the end of the year stock market rally and where we could be in the AI cycle some of the big challenges that come with AI advancing so fast the company's solving those challenges in a few key markets and of course which stocks are worth watching as a result there's a ton to talk about so let's dive right into the end of the Year's stock market rally I'm going to

play a quick CNBC clip that tells the story as fast as possible and then I'll follow up with some great charts and additional context as we go buckle up because this clip is fire all right let's start off uh you're going to actually give us the word of the day today what is it and why fire because I think this is a tech Market that's going to be on fire not just for the going into the end of the year this week but what I believe right now this AI Revolution it's hitting its NE next

phase and I think this is just still the start of a fourth Industrial Revolution now the second derivative the software piece of AI is here I think in 2025 that's going to be the key you look at elastic snowflake names like mongod DB they're the ones now that file names like paler in terms of the software the use cases I believe software has underperformed but if you look in 2025 I think a year from now we sit here and we're like software is fire we're talking about two trillion of AI capex now software they they

weren they were on the Velvet rops behind you know Nvidia Microsoft hyperscalers software is like let us into the party part's here the part's here okay so this is a really interesting observation by Dan Ives if you've been following this channel for a while you know that I like to invest in companies with platforms that other businesses pay to build on top of and because my background is in electrical engineering I tend to focus on Hardware platforms like AI chips data center infrastructure and self-driving cars that's done really well for me over the last few

years but even though many software stocks have underperformed the market in 2024 Dan IES thinks that they'll outperform in 2025 because we may be entering the next phase of the AI Revolution so the obvious question is what are these different phases and which companies will dominate them let me show you one possible answer this isn't awesome case study from Morgan Stanley research that looks at how different kinds of stocks performed during the rise of the mobile internet as the saying goes history doesn't repeat itself but it often Rhymes so this case study could help us

identify winning stocks in the AI era as well software and service companies like Google and Amazon were the top performers when the mobile internet took off but they were also the last part of the value chain to rise since giant software and service ecosystems run on on top of an established Hardware infrastructure like data centers PCS tablets and smartphones and before the next generation of computing infrastructure companies can make big moves of their own chip companies have to build the processors that power them so what Dan IES is saying is that 2025 will kick off

the software phase of the AI Revolution since we've seen chip companies like Nvidia arm and Taiwan semiconductor grow by 50 100 or even 200% this year alone loone and massive data center infrastructure companies like broadcom Oracle and Dell are on the rise as well Dan Ives also mentioned the $2 trillion in capex that companies invested in AI infrastructure across almost every Market but what may not be obvious is the next challenge that all these companies are about to face which is the huge amount of data that AI models take to train and then the insane

amount of data they'll generate as they're being used data that needs to be properly collected analyzed and stored especially if it includes personal data like medical and Biometrics online usage behavior and chat logs transaction and payment information and so on that means data security is about to be a huge issue for companies and consumers across every single industry and speaking of data I found out that dozens of online data Brokers were selling my personal data and if you've been getting lots of spam phone calls texts or emails lately they might be selling yours too that's

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my family's data safe all right if Dan Ives is right about us entering the software phase of the AI Revolution then data security is about to be a huge issue for a lot of companies across every market so instead of guessing which software stocks are going to dominate The Market in 2025 we can invest in the one thing that every single Market needs and that that's cyber security in fact the global cyber security Market is expected to almost triple in size over the next 9 years which is a compound annual growth rate of 12% per

year that's not bad but the global Cloud security Market is expected to 5x by 2032 which means it'll grow almost twice as fast I'm showing you multiple charts here because cyber security is an umbrella term with many different subcategories just like artificial intelligence has many different subcategories as well which I often cover on this channel because the cyber security space is so big and fragmented I wanted to find a market map to help me understand the space the best one that I found is this one by Francis who goes by investe analyst on X because

it breaks things down using first principles and it's very easy to understand so let me walk you through it and highlight a few of my favorite stocks along the way modern Enterprises consist of three things people software and Hardware those things are all connected by a network that manages stores and secures a company's data which is usually the thing that hackers are after and there are many different kinds of cyber security companies that focus on securing different parts of an Enterprise for example access management and authentication ensures that only the right users with the right

permissions can move around the right parts of a network identity protection doesn't protect a network at all it focuses on protecting user information from getting stolen that's where delete me fits in but for your personal data on the open internet instead of a specific company's Network endpoint protection doesn't protect users at all focusing instead on securing workstations laptops tablets smartphones and any other device that connects to a specific Network despite the global outage this year crowdstrike is an awesome company focused on endpoint detection and response they have an Enterprise platform called Falcon to defend against

breaches and respond to any attacks that do manage to get through Crow strike's Falcon platform has three parts they have a library of cloud-based modules that do things like antivirus scanning firewall management and locking down different kinds of cyber threats and malware they also have a proprietary threat graph that tracks the connections between people their devices and permissions and the networks that they have access to which they can then compare against actual device and network traffic to deal with any anomalies as they come up and to do that the Falcon agent is is a tiny

piece of software that runs on every device to send data back to crowdstrike so that they know when to run their different Cloud modules as well as keep their threat graph up to date crowd strike just reported earnings and even with the outage their revenue grew 29% year over a year which beat consensus estimates one thing to point out about crowd strikes revenue is that it's very reliable with the vast majority coming from recurring subscriptions as opposed to Professional Services they're also incredibly sticky with a 90 7% gross retention rate and most companies using up

to five of their Cloud modules crowd strike's total quarterly Revenue just surpassed a billion dollars for the first time and they raised their ful year guidance on top of that crowd strike is the market leader in endpoint detection and response with Gartner ranking them above great companies like Palo Alto networks Sentinel 1 and even Microsoft for the fifth consecutive time and if you want even more proof of their staying power crowdstrike stock is around 40% for the year after recovering from the outage Fiasco this past summer and in case you missed IT Crowd strike was

also added to the S&P 500 this year as well all right let's say that an endpoint does get compromised that means the networks it has access to are now at risk foret focuses on intrusion detection systems and firewalls like their fortigate systems which Monitor and control Network traffic based on predefined security rules think of fortigate as a security checkpoint but for network data instead of people fortigate combines a firewall with a softwar defined wide area network that routes traffic through the shortest path which has two big benefits first it improves overall Network performance by lowering

the average number of hops that data needs to make from point A to point B but second it also reduces security risks since that data passes through fewer devices which means fewer access points for Bad actors these physical fortigate machines work best for high throughput on premises applications usually in highly regulated Industries like finance and Healthcare which have strict rules about how where and even when this kind of data can be stored foret is always expanding the capabilities of its fortigate platform like by adding zero trust network access which continually verifies the users and services

trying to get on a network or inline sandboxing which checks software for threats in a quarantined environment before giving it access to a broad Network or inline Cloud access security which extends those same safety controls to Applications already on the cloud they're also expanding their total addressable market for example fortunet offers firewalls as a service through fortigate Cloud for companies that don't need physical on-site Solutions and they have a generative AI assistant called 4 toai to help security teams detect and analyze threats optimize Network traffic and take the right actions as necessary fortunet also recently

reported earnings and while their revenue only grew by 133% year-over-year their margins expanded to record levels Fortinet reported massive 83% gross margins and 36% operating margins making them a profit Powerhouse and just like crowd strike Gartner ranks foret as the market leader for softwar defined wide area networks above huge companies like huet Packard broadcom Cisco and Palo Alto networks fortinet's Hardware platforms are why I put them on my list of stocks to get rich without getting lucky in 2024 which is a list I made almost a year ago and have been tracking ever since without

removing or adding any companies fortunet stock is currently up by over 60% year-to dat and it's well positioned to make my list again in 2025 the other cyber security stock on my list is poo Alto networks which is also up over 30% year-to date while crowd strike and fortunet are more specializ P Alto Network serves several cyber security sectors all at once and they do it well Gartner ranked P Alto networks as a market leader in a wide variety of cyber security submarkets like security service edge endpoint protection along companies like crowd strike in Microsoft

network firewalls alongside fortunet and they're the only leader in single vendor secure access service edge or sassy think of that as another kind of data security checkpoint but specifically to inspect web traffic traffic for malware Palo alto's broad reach across the cyber security Spectrum puts it in a great position to grow as they tackle the new kinds of cyber threats that come with the mass adoption of generative AI in fact po Alto security platform called Prisma has AI capabilities of its own to do things like automated app Discovery Safe app onboarding and continuous trust verification

and they recently launched a new platform called Precision AI which helps businesses AUD the detection prevention and response to AI threats it integrates different Ai and machine learning models from poo alto's other security software platforms like Prisma strata and cortex to identify different attack types Bad actors and where they came from po Alto networks also just reported earnings and their annual recurring revenue from their next Generation security applications grew by 40% year-over-year that's the revenue from their software platforms like Prisma and cortex and they're looking to roughly triple that by 2030 to $15 billion in

recurring revenue from their next Generation security platforms if they hit their goal that would be a 24% compound annual growth rate for the next 5 years po Alto networks also reported strong gross margins of 77% and operating margins of 29% exactly what we want to see from these kinds of software platform companies and just like crowdstrike's Charlotte and fortinet's for to AI po Alto networks has a set of generative AI co-pilots for each of their platforms as well so all three of these companies are fighting fire with fire when it comes to cyber security and

AI besides being some of the first companies to use generative AI for cyber security I think that crowd strike fortunet and poo Alto networks will do very well in 2025 for a few key reasons and if you feel I've earned it consider hitting the like button and subscribing to the channel that really helps me out and it lets me know to put out more content like this thanks and with that out of the way here's why I think these stocks will be solid investments in 2025 first they each address different areas of cyber security and

they're all Market leaders in their respective area second they all reported strong earnings even though many software companies underperformed the market in 2024 and third they're all in the s&p500 and the NASDAQ which means most investors and institutions already hold these companies on top of that as generative AI gets integrated deeper into our smartphones tablets laptops and workstations everyone on Earth is going to consume produce and transmit a lot more data and new kinds of data which means data security is going to be a serious issue for every single industry and that means many different

areas within the cyber security industry will grow even faster than most analysts predict since we'll also see new kinds of chips devices software applications and data that need to be secured new rules and regulations for what counts as secure in the first place new kinds of malware and hacking techniques and just way more cyber threats in general as AI opens new angles of attack for Bad actors to take advantage of so comment below if you want me to do a deep dive on any of these companies this is an area that I'm excited to learn

more about in 2025 and I'm happy to share what I find with you after all understanding the science behind the stocks is the best way to get rich without getting lucky and if you want to see what else I've been investing in to get rich without getting lucky check out this video next either way thanks for watching and until next time this is ticker symbol U my name is Alex reminding you that the best investment you can make is in you