In 2024, technology stocks involved in artificial intelligence (AI) led the Nasdaq-100 index higher, while healthcare stocks struggled due in part to concerns about how Robert F. Kennedy's nomination for Health and Human Services Secretary might impact the industry. The three technology stocks listed below ranked among the four best performing members of the Nasdaq-100 last year:
- AppLovin (NASDAQ: APP) advanced 713%.
- Palantir Technologies (NASDAQ: PLTR) advanced 340%.
- Nvidia (NASDAQ: NVDA) advanced 171%.
The story has flip-flopped in 2025. The technology sector has disappointed investors, while healthcare stocks have led the U.S. market higher. In fact, Gilead Sciences (NASDAQ: GILD) is the best performing member of the Nasdaq-100 index as of March 9, achieving a year-to-date return of 27%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Here's what investors should know.
Image source: Getty Images.
AppLovin, Palantir, and Nvidia have fallen sharply from their highs
AppLovin provides mobile application developers with ad tech software that leans on AI to help them market and monetize their products. The company looked strong in the fourth quarter. Revenue increased 44% to $1.3 billion and non-GAAP net income more than tripled. But scathing reports from two short sellers have contributed to the stock falling 47% from its high this year.
Palantir provides data analytics software for commercial and government organizations. International Data Corporation (IDC) recently recognized its market leadership in decision-intelligence software, and the company consistently beat Wall Street's expectations with its financial results last year. But concerns about insider selling and possible Pentagon budget cuts have contributed to the stock falling 32% from its high this year.
Nvidia is the market leader in data center graphics processing units (GPUs), chips that are the industry standard in accelerating computationally intensive workloads like AI training and AI inference. But concerns about the sustainability of AI infrastructure spending and export restrictions have contributed to the stock falling 25% from its high this year.
Recent declines notwithstanding, Wall Street remains predominately bullish on AppLovin, Palantir, and Nvidia. In fact, the median target prices on the three stocks imply substantial upside for shareholders, as detailed below:
- AppLovin's median target price of $555 per share implies 132% upside from its current share price of $239.
- Palantir's median target price of $97 per share implies 22% upside from its current share price of $79.
- Nvidia's median target price of $175 per share implies 65% upside from its current share price of $106.
However, the strong performance of healthcare-sector stocks in 2025 is a good reminder that portfolio diversification matters. And Gilead Sciences warrants consideration.
Gilead Sciences has catalysts on the horizon
Gilead is a pharmaceutical company with a strong presence in the HIV and oncology markets. It is particularly well known for developing the first once-daily tablet for HIV treatment. Gilead was also the first company to receive approval for a pre-exposure prophylaxis (PrEP) HIV medication, meaning a drug used to prevent infection in high-risk adults.
Gilead reported Q4 financial results that beat Wall Street expectations on the top and bottom lines. Revenue increased 6% to $7.6 billion due to higher sales across its HIV, oncology, and liver disease segments, offset by lower sales in Veklury, an injectable treatment for COVID-19. Non-GAAP net income increased 10% to $1.90 per diluted share.
Several possible catalysts could send Gilead shares higher in the months ahead. The company anticipates regulatory approval of twice-yearly lenacapavir injections for HIV pre-exposure prophylaxis in the U.S. and Europe in 2025. The medication in phase-3 trials not only showed efficacy in reducing infection risk; it also showed superiority compared with once-daily Truvada, the current gold standard.
Gilead also anticipates updates from two phase-3 clinical trials involving Trodelvy. The drug was recently designated by the Food and Drug Administration (FDA) as a breakthrough therapy for patients with extensive-stage small cell lung cancer (SCLC), but the anticipated updates concern its efficacy as a first-line treatment for metastatic triple-negative breast cancer.
CEO Daniel O'Day told analysts on the Q4 earnings call:
As we shared at our HIV analyst day in December, we have a broad and unmatched clinical program for both HIV treatment and prevention that builds on what we currently offer with Biktarvy and Descovy. We expect to deliver up to seven potential new HIV treatment options and two prevention options before the end of 2033.
Despite leading the Nasdaq-100 higher this year, Gilead shares still trade at a reasonable price. Wall Street expects adjusted earnings to increase at 32% annually over the next two years, which makes the current price-to-earnings (PE) multiple of 25 look fair. Additionally, the current forward PE multiple of 14.8 is below the one-year average of 16.6. Investors should feel comfortable buying a small position today.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $292,207!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,326!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $480,568!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of March 10, 2025
Trevor Jennewine has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends AppLovin, Gilead Sciences, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
