Apple Inc. (AAPL) – Ushering in a New Era of AI-Driven Growth

Apple Inc. is on the brink of a transformative era, with projections indicating a “golden age” of growth fueled by artificial intelligence. Analysts Daniel Ives and Scott Devitt have raised Apple’s price target to USD325 from USD300, anticipating a multi-year AI-driven iPhone upgrade cycle leading into 2025.

With over 2 billion iOS devices and 300 million iPhones ready for upgrades, the company is positioned to achieve historic milestones. Apple’s robust installed user base and valuation of its services division at over USD2 trillion are key growth drivers. Analysts predict that Apple could sell upwards of 240 million iPhones in FY25, marking the highest sales year in the company’s history. China alone presents a massive upgrade opportunity of 100 million iPhones.

Apple’s emerging AI strategy, showcased through initiatives like Apple Intelligence, is expected to generate a new multi-billion-dollar annual services revenue stream. Features such as ChatGPT integration and Visual Intelligence, set to debut in iOS 18.2, are poised to redefine the user experience. This upgrade cycle could establish a historic supercycle, making Apple the first company to achieve a USD4 trillion market cap. The recommendation for Apple is OUTPERFORM, with a significant upside potential of 26%.

Rocket Pharmaceuticals (RCKT) – Pioneering Transformative Therapies

Rocket Pharmaceuticals stands out as a leader in gene therapy for rare diseases. The company’s innovative approach focuses on adeno-associated virus (AAV) and lentiviral gene therapies. Analysts Yun Zhong, Ph.D., highlight Rocket’s flagship candidate, RP-A501, which targets Danon disease and is progressing toward pivotal Phase 2 results in 2026. This program addresses a market of approximately 17,000 patients in the U.S. and EU, with potential revenue exceeding USD1.2 billion.

Additionally, RP-A601 for arrhythmogenic cardiomyopathy (PKP2-ACM) addresses a larger market of over 50,000 patients, showcasing strong preclinical data. Rocket’s lentiviral portfolio includes RP-L201 for LAD-I and RP-L102 for Fanconi anemia, both nearing FDA and EMA submissions. The company’s ongoing work in cardiac gene therapy further solidifies its position in the market. Rocket Pharmaceuticals is anticipated to achieve significant milestones in 2025, making it a compelling investment. The recommendation is OUTPERFORM.

PulteGroup (PHM) – Positioned for a Strong Rebound

PulteGroup’s recent stock price decline of 27% has been deemed excessive by analysts Jay McCanless and Brian Violino. The homebuilder is now upgraded to OUTPERFORM, with a price target of USD135, reflecting a 2.0x multiple on FY25E tangible book value of USD68.28.

Key catalysts for growth include the potential easing of tariffs under the Trump administration, which could lower mortgage rates, and anticipated loosening of mortgage credit availability. Pulte has repurchased over 67 million shares since F1Q20 and maintains a USD1.5 billion repurchase authorization. The company’s strong balance sheet and projected net cash position by F4Q24 make it an attractive investment opportunity.

Silicon Motion Technology Corp (SIMO) – Abundant Opportunities Ahead

Silicon Motion is poised for significant growth in 2025 and beyond, according to analysts Matt Bryson and Antoine Legault. The company’s high-end Gen5 PCIe controllers are expected to capture over 50% of the market, while its MonTitan enterprise SSD controllers could represent 5%-10% of sales by 2026/2027. Initial shipping of UFS QLC controllers and advancements in automotive revenues are additional growth drivers.

Silicon Motion is also leveraging Gen 6 UFS4.0/PCIe 5.0 controllers, which may boost ASPs significantly as production shifts to 6nm and 3nm technologies. Despite current soft demand, the company is projected to achieve double-digit CAGR, driven by innovative products and a recovery from inventory reductions. The recommendation is OUTPERFORM, with a price target of USD90, indicating a potential upside of 67%.

Xometry (XMTR) – Revolutionizing Custom Manufacturing

Xometry, a digital marketplace for custom manufacturing, has been initiated with an OUTPERFORM rating and a price target of USD48. Analysts Scott Devitt and Michael Gerbino project a 17% revenue CAGR over the next five years, driven by increasing adoption among buyers and suppliers, expanding enterprise accounts, and enhanced manufacturing capabilities.

With nearly 600,000 small manufacturers in the U.S. generating over USD1 trillion in revenue, Xometry has significant growth potential. The company has successfully doubled its platform users over the past three years and remains underpenetrated in its addressable markets. Xometry’s competitive position and attractive margin profile make it a compelling investment opportunity.

REITs – A Volatile Yet Promising Landscape

Real Estate Investment Trusts (REITs) are expected to face a volatile year ahead, but unique trading opportunities could emerge. Analysts Richard Anderson and Jay Kornreich project a 9% total return for REITs in 2025, compared to 25% for the S&P 500 in 2024. Positive factors include a projected 5% growth in AFFO and an average dividend yield of 4%.

Leverage rates have improved significantly, and economic stability coupled with declining supply provides a favorable outlook. However, challenges persist in a “higher for longer” interest rate environment. The recommendation is to monitor the market for better entry points early in the year as geopolitical factors and corporate tax cuts unfold.