Investing

Top Ideas 2025: SNOW, GTLB and SMCI Have Phenomenal Upside Potential

Chris MacDonald

Published: January 22, 2025 12:24 pm

Investors faced a unique dynamic in 2024, with a range of catalysts dominating the mind share of most investors. From surging AI interest to the U.S. election and still-high interest rates, various growth stocks were sent on a rather volatile ride, though many did end the year markedly higher than where they started out. Of course, most growth investors hope that this will be the case for 2025, but no one really has a crystal ball and can tell for sure.

That said, not all growth stocks followed the market higher last year. The three companies I’ve got on my list are actually down over the course of the past year, and are top tickers many investors remain bearish on for one reason or another.

However, these three companies are ones I think could have among the most impressive upside potential this year, if a variety of catalysts take hold. Each company has their own unique catalysts I think could take them higher over the next 12 months.

So, without further ado, let’s dive into what makes these three growth stocks ones with phenomenal upside potential in 2025.

Key Points About This Article:

• The market for growth stocks has improved, though some companies have performed better than others in recent years.
• Here are three relative underperformers from 2024 I think could have a big 2025 ahead.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Snowflake (SNOW)

Snowflake (NYSE:SNOW) is a top data cloud platform provider, with its core business model seeing continued interest from investors looking to ride robust growth trends in the AI and LLM space. The company’s new services and AI offerings have provided strong operating margin growth, though this remains a top growth stock that trades at a valuation some investors have balked at.

Now, Snowflake has been on my watch list for a long time, in part due to the fact that Warren Buffett and his team have previously invested in the cloud computing giant. I think the company’s AI-centric products could certainly see strong growth, with the company’s fiscal Q3 2025 results in November painting a solid picture. The company’s revenue grew 28% year-over-year to $942 million, and the company increased its forward guidance on these results. That led to a sharp uptick higher, though it’s been more of a grind for the cloud giant of late.

If momentum in the AI sector can continue to bleed over into companies servicing this space, I think Snowflake and other related companies could see a solid 2025. We’ll have to see how the narrative shifts over the course of the next year. But for now, this is a stock I’m optimistic on as a potential winner in what could be a big year for cloud giants ahead.

GitLab (GLTB)

GitLab’s (NASDAQ:GTLB) platform supports developers with coding and security solutions, integrating its AI platform, GitLab Duo, with Amazon Q, an agentic AI chatbot. During its Q3 earnings call, management emphasized agentic AI as the foundation of GitLab Duo’s workflow. This collaboration parallels Microsoft’s CoPilot success, which leverages GitHub, GitLab’s key competitor acquired by Microsoft for $7 billion in 2018.

GitLab has continued to focus on enhancing its portfolio with AI tools like Duo Pro and Duo Enterprise. These products help GitLab’s clientele boost developer productivity through advanced code generation and assistance. In Q3 fiscal 2025, the company also launched Advanced SAST, integrating Oxeye technology for better vulnerability detection in first-party code. Additionally, GitLab has expanded in the public sector, securing contracts with agencies like the U.S. General Services Administration for compliant DevSecOps solutions.

GitLab’s leadership in the DevSecOps space and expanding client base fueled its growth outlook. For Q4 fiscal 2025, the company has projected revenue of $205–$206 million (up 25% to 26% year-over-year), with non-GAAP EPS expected to come in the range of $0.22 to $0.23. Full-year fiscal 2025 revenue is estimated to be $753–$754 million (a 30% increase), with non-GAAP EPS of $0.63–$0.64.

Super Micro Computer (SMCI)

Super Micro Computer (NASDAQ:SMCI) saw a volatile 2024, soaring over 300% early in the year before facing accounting fraud allegations. An independent audit later cleared the company, renewing its appeal as a potential investment.

SMCI, known for making server components and fully assembled servers, specializes in energy-efficient liquid-cooled racks ideal for GPU-intensive data centers. Despite pending SEC filings due to a new accounting firm, the stock remains undervalued with a forward price-earnings ratio of 11.7-times. With sustained demand for computing power, Super Micro has strong potential for significant gains in 2025.

SMCI stock surged 15% in November 2024 as the company advanced in AI and data center markets, benefiting from growing demand for high-performance computing. Its focus on innovation and energy-efficient server solutions strengthened its appeal, while sustainability initiatives aligned with investor priorities. Positioned to capitalize on AI-driven growth, Supermicro remains a compelling player in the tech industry.