Looking back at the U.S. stock market last year, I see some truly interesting patterns. As the imbalance rally centered on AI and semiconductors continued, more than 80% of the market’s gains ultimately came from a small number of large-cap stocks. Companies like NVIDIA, Microsoft, and Apple dominated the market—but the key point is that this is not just a simple trend; it is a structural growth cycle.

When choosing recommended U.S. stocks, the first thing investors should look at is the financial soundness of the company. Even if volatility is high, companies with solid cash flows and stable debt structures are the ones that ultimately survive. Apple and Microsoft each hold more than $60 billion in cash equivalents, giving them the capacity to maintain both share buybacks and dividends even if the economy worsens.

It’s also important to recognize that this is an era where the technological gap becomes a competitive advantage. NVIDIA holds more than 80% of the AI accelerator chip market, and it goes beyond simply manufacturing chips—it has built the CUDA ecosystem and integrated software as well. These network effects are difficult to catch up to in the short term. The same is true for Google’s Gemini 2.0 and Microsoft’s Copilot commercialization, which are also raising technological barriers to entry.

There’s debate around valuation, but a high P/E ratio for companies with proven long-term growth potential is not necessarily a warning sign. Tesla maintaining a P/E ratio of 60x or more reflects expectations for a new business model—robotaxis and energy storage systems—not just a traditional electric vehicle company. On the other hand, high P/E stocks based only on short-term themes can be quickly adjusted if profit momentum fades, so caution is needed.

The most important factor in selecting recommended U.S. stocks is sustainable earnings growth. The market responds to short-term news, but over the long run, stock prices are always determined by a stable earnings structure and the certainty of future growth. Looking at the healthcare sector, it has polarized around obesity-treatment themes. Eli Lilly and Novo Nordisk delivered strong results, while traditional pharmaceutical companies saw their stock prices fall by 15% to 20% due to slowing sales.

For the investment strategy in 2025 to 2026, diversified investing through ETFs is still the most realistic approach. With a single purchase, you can gain exposure to multiple industries, and capital inflows into major asset managers like BlackRock and Vanguard continue as well. By using not only growth sectors like AI and semiconductors, but also dividend, healthcare, and defensive ETFs, you can lower the risk of individual stocks while maintaining a balanced portfolio.

A dollar-based DCA (dollar-cost averaging) strategy is also effective. This involves investing a fixed amount regularly to lower your average purchase price. According to JPMorgan Asset Management, if you invested steadily in the S&P 500 for 10 years, the probability of losses was less than 5%. It’s a way to maintain psychological stability even amid short-term volatility.

If we highlight some notable recommended U.S. stocks, NVIDIA is still the #1 AI accelerator chip player, with a full-stack strength that integrates data centers and the software ecosystem. Microsoft’s Copilot monetization and Azure AI customer lock-in effects are also strong. Apple is driving high-growth service revenue with on-device AI, while Alphabet is improving AI search and ad efficiency through Gemini 2.0 and the recovery of YouTube Premium. Amazon is working on AWS margin improvements and retail automation, and AMD—ranked #2 in AI accelerators—can expect improvements in data-center mix as MI series market share expands.

Meta is boosting ad efficiency by further enhancing its AI recommendation engine, and Tesla’s FSD and energy storage are driving its performance. On the defensive side, Costco is showing stable growth in a period of slowing inflation, and UnitedHealth benefits from an aging population, with advantages in Optum data and analytics growth.

Risk management is key. Start with position-size limits, stop-loss settings, and sector diversification. During FOMC meetings or earnings-report weeks, you should reduce positions to manage volatility. It’s also important to rebalance quarterly to adjust the weighting of overheated sectors. With passive ETF flows dominating the market these days, rebalancing itself becomes one of the most powerful risk-management tools.

Ultimately, the core strategy for the next 5 years is long-term diversification and risk management. By building a portfolio with ETFs, rebalancing regularly, and continuing with consistent dollar-cost averaging, you can expect stable compound returns even amid short-term volatility. When choosing recommended U.S. stocks, the most realistic and safest approach is to focus on companies that are financially solid and have technological competitive advantages, and that also have room to keep growing within their industries—rather than chasing trends.