2025 is the year of BATMAAN. Artificial intelligence (AI) leader Nvidia is the trillion dollar club stock to buy.

Big tech stocks have been dominating the markets in recent years. From acronyms like FANG, then FAANG, to the “Magnificent Seven,” investors created ways to group together the biggest and fastest-growing tech names.

After another amazing year in 2024, where technology weighed heavily Nasdaq Composite The index rose 28%, the outlook for 2025 looks a bit more uncertain. While many tech companies should continue to show strong revenue and earnings growth, stock valuations reflect that in many cases.

But all eyes will still be on what can now be called BATMMAAN shares in 2025 as growth could still beat expectations. This BATMAAN stock group has them all market caps in excess of trillions of dollars. they are Broadcom (NASDAQ: AVGO), Apple (NASDAQ: AAPL), Tesla (NASDAQ: TSLA), Microsoft (NASDAQ: MSFT), Metaplatforms (NASDAQ: META), alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN)i Nvidia (NASDAQ: NVDA).

But there is only one that currently seems undervalued. Even after tripling in price over the past year, Nvidia is the only stock in BATMAAN that still looks undervalued by an important metric.

Valuing tech stocks can be tricky. Inevitably, investors bid shares higher based on potential future growth, but before revenues and earnings have yet materialized. BATMAAN stock has bright prospects for growth in 2025. Trends in technology including artificial intelligence (AI)robotics, computing power and autonomous vehicles will increase sales and profits.

But the actions already reflect it. The most comprehensive way to quantify which is the best value is to compare estimated earnings growth to the stock’s price-to-earnings (P/E) ratio. If this P/E-growth (PEG) ratio is less than 1, it means that the earnings growth rate is expected to exceed the valuation that future investors have already assigned to the stock. It’s a way of suggesting that a growth stock is undervalued. The table below shows that Nvidia is the only trillion dollar stock that still has a PEG ratio below 1.

company	Market capitalization* (in trillions of dollars)	Earnings growth 2025**	PEG ratio 2025**
Apple	$3.68	19%	1.8
Nvidia	$3.54	52%	0.6
Microsoft	$3.15	13%	2.3
alphabet	$2.36	12%	1.8
Amazon	$2.36	25%	1.4
Metaplatforms	$1.53	12%	1.9
Tesla	$1.32	37%	3.2
Broadcom	$1.09	28%	1.3

Data source: FactSet Research reported by barron’s *Market cap as of 3/1/25; **Ratios and growth based on calendar year estimates.

Each of these companies has a unique growth path. Apple relies on iPhone sales to continue adding users to an ecosystem that integrates with its other consumer products and services. Amazon’s consumer e-commerce business remains a big contributor to its revenue, but Amazon Web Services’ cloud computing services are becoming more important. Its growth has helped Amazon shares rise 55% over the past year. Analysts expect earnings to rise another 25% by 2025.

Microsoft also has a rapidly growing cloud storage segment with Azure. And like Apple, it integrates retail computer offerings with related services. Meta Platforms relies on recurring subscription and advertising revenue from its social media platforms. But Meta is also driving the growth of augmented reality (AR) and virtual reality (VR) products and applications. Meta shares are up nearly 75% in the past 12 months.

Tesla is perhaps the most diverse company in the trillion dollar club. Its valuation goes far beyond its position as the world’s leading electric vehicle (EV) company. Tesla is collecting data from these electric vehicles to improve its self-driving software, hoping to launch a fleet of autonomous robotaxis. It also has a growing energy storage segment and an increasingly controversial robotics division with Optimus humanoid robots.

Although they are all different paths, all of these companies are investing heavily in the future. This expense is an important area of commonality. This is also why Nvidia is expected to grow its earnings much faster than the others in the BATMAAN group.

These companies are spending heavily to increase computing power. Data centers used for cloud storage are not enough. Big tech companies now need data centers dedicated to developing large language models and the other functions that AI models perform. Nvidia is the leading source of advanced semiconductor chips for this purpose. It has just released Blackwell’s powerful graphics processing unit (GPU) architecture and plans for the next-generation system, Rubin, which will be available next year.

Broadcom provides network and software solutions for these data centers. Its stock is up more than 120% in the past year, largely as investors increasingly see what it brings to the growing AI ecosystem.

But much of the spending goes to Nvidia. Microsoft President Brad Smith recently said his company expects to spend $80 billion in fiscal 2025 for AI data centers used to train models. Nvidia shares some of that spending turned into revenue and earnings. Although the stock rose, the company’s growth looks set to continue in 2025 and still looks like a good buy.

PEG is a great way to find undervalued growth stocks. Of course, forward estimates must be realized, or actions will be punished. This is the risk that investors must manage. But Nvidia looks like a good bet heading into the new year.

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Alphabet executive Suzanne Frey is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former CMO and Facebook spokesperson and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Howard Smith has positions in Alphabet, Amazon, Apple, Broadcom, Microsoft, Nvidia and Tesla and has the following options: Short January 2025 $255 Apple calls. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 Microsoft calls and short January 2026 $405 Microsoft calls. The Motley Fool has one disclosure policy.

2025 is the year of BATMAAN. Artificial intelligence (AI) leader Nvidia is the trillion dollar club stock to buy. was originally published by The Motley Fool

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