Looking back at the U.S. stock market in 2025, I have one key observation. The current market is not just a liquidity-driven rally but a profit-driven boom based on actual corporate earnings. Especially, the structural growth centered around AI and semiconductors is truly fascinating.

Since the end of last year, expectations of interest rate cuts, explosive growth in the AI industry, and solid earnings in the semiconductor and energy sectors have driven the market. The S&P 500 has risen about 12% from the late 6,000s compared to a year ago, and the Dow Jones Industrial Average remains near its all-time high. The Federal Reserve also leaves the door open for additional rate cuts, gradually increasing funds flowing into risk assets.

What is the most important factor when receiving stock recommendations in this market? Financial health, technological competitiveness, appropriate valuation, and future growth potential. For example, companies like Apple and Microsoft hold over $600 billion in cash equivalents, giving them the capacity to maintain share buybacks and dividends even during a downturn. These companies are likely to generate steady profits regardless of short-term economic fluctuations.

Particularly noteworthy is Nvidia’s position. It dominates over 80% of the AI computing GPU market and has built a structural competitive advantage beyond simple chip manufacturing, integrating the CUDA ecosystem and software tools. This creates network effects that are difficult for competitors to catch up with in the short term.

Looking at recommended U.S. stocks, key themes include Microsoft’s monetization of Copilot, Apple’s on-device AI integration, Alphabet’s Gemini 2.0, and Amazon’s improved AWS margins. AMD is expanding its share in the AI accelerator market, and Meta is enhancing its AI recommendation engine to improve ad efficiency. Tesla is growing its earnings base through FSD and energy storage.

However, there are some cautions. The healthcare sector is becoming polarized around obesity treatments, and clean energy faces short-term funding cost increases. The financial sector’s earnings recovery is limited due to narrowing net interest margins.

Personally, I believe the core strategy for U.S. stock recommendations after 2025 is long-term diversification and risk management. Diversified investments through ETFs are the most efficient, allowing exposure to multiple industries with a single purchase. As the global ETF market surpasses $17 trillion, the importance of this approach will continue to grow.

A dollar-cost averaging (DCA) strategy is also particularly suitable for volatile markets. According to J.P. Morgan Asset Management, investing steadily in the S&P 500 over ten years results in less than a 5% probability of loss. It’s crucial to set position size limits, stop-loss points, and sector diversification, and to rebalance quarterly to adjust overly heated sector weights.

Ultimately, if you’re considering U.S. stock recommendations, the best approach is to avoid being shaken by short-term volatility and focus on the medium-term upward trend. Stable inflation and robust corporate earnings are firmly supporting the market’s downside. For stable compound returns over the next five years, maintaining a consistent asset accumulation strategy and managing your portfolio on a trusted platform like Gate can be effective.