As the first earnings season of 2025 unfolds, investors are likely analyzing financial reports to refine their portfolio strategies.
Indeed, earnings and guidance from various companies remain crucial for stock selection, especially as the market continues to experience increased volatility amid lingering economic uncertainty.
To this end, Finbold leveraged DeepSeek’s R1 artificial intelligence (AI) model to identify promising stocks for Q1 2025.
Picks for you
The AI-driven analysis focused on companies demonstrating strong financial performance and growth potential across sectors such as technology and healthcare. Below are the AI-selected stocks poised for potential gains this earnings season.
Nvidia (NASDAQ: NVDA)
DeepSeek chose semiconductor giant Nvidia (NASDAQ: NVDA) as its first pick, citing its GPU, AI, and data technology prowess.
The tool noted that Nvidia continues to ride the AI revolution, benefiting from strong earnings growth and a presence in high-performance computing and autonomous vehicles.
It’s worth noting that DeepSeek’s emergence has raised concerns about AI infrastructure spending, as the model reportedly uses fewer resources than Nvidia’s high-end chips. These uncertainties have contributed to significant volatility in NVDA stock. However, a section of Wall Street has dismissed DeepSeek as a potential threat to Nvidia’s long-term prospects.
Nvidia is set to announce its earnings report on February 26, with analysts estimating a blockbuster earnings season. For Q1 2025, revenue is expected to reach an average of $38.13 billion, marking a 72.49% year-over-year increase.
The April quarter forecast is $41.94 billion, up 61.05% from last year, while full-year 2025 revenue is estimated at $129.23 billion, reflecting a staggering 112.12% growth.
DeepSeek stated that NVDA remains attractive due to Nvidia’s firm grasp of AI hardware and software ecosystems.
NVDA’s share price stood at $129.84 by press time, gaining almost 1% in the past 24 hours. Over the past week, the stock has surged nearly 14%.
Microsoft (NASDAQ: MSFT)
According to DeepSeek, Microsoft (NASDAQ: MSFT), a diversified tech giant with solid cloud computing and AI growth, is another compelling pick for investors this earnings season.
It’s worth noting that Microsoft posted mixed Q4 2024 results, with strong earnings overshadowed by slowing Azure growth and a weaker-than-expected revenue forecast.
The company reported earnings per share (EPS) of $3.23, beating the $3.11 estimate and revenue of $69.63 billion, exceeding the $68.78 billion forecast.
However, revenue growth slowed to 12.3% year over year, the weakest since mid-2023. Net income rose to $24.11 billion from $21.87 billion a year earlier.
DeepSeek maintained that Microsoft has strong growth potential, mainly due to its AI ventures, with key catalysts such as its OpenAI partnership.
At the close of the last trading session, MSFT stock was valued at $409.75, dropping 1.4% for the day. Year-to-date, the stock is down over 2%.
Eli Lilly (NYSE: LLY)
Eli Lilly (NYSE: LLY), the only healthcare stock in the selection, has established itself as a key player in the pharmaceutical sector.
The company benefits from surging demand for diabetes and obesity treatments, including Mounjaro and Zepbound.
According to DeepSeek, progress in Alzheimer’s research further enhances the firm’s growth potential, making it a compelling choice for investors seeking exposure to the healthcare industry.
Eli Lilly topped earnings expectations for the last quarter of 2024 but missed revenue estimates as Mounjaro faced lower realized prices. Adjusted EPS came in at $5.32 compared to $4.95 expected, while revenue reached $13.53 billion ($13.57 billion expected), marking a 45% year-over-year growth.
Despite two consecutive quarters of underperformance for Mounjaro and Zepbound, the company reaffirmed its 2025 sales guidance of $58B-$61B and a profit outlook of $22.05-$23.55 per share.
By press time, LLY was trading at $878.31, gaining over 13% YTD.
Regarding portfolio allocation, DeepSeek recommended allocating 40% each to Nvidia and Microsoft, with the remaining 20% going to Eli Lilly.
The AI tool noted that this highly concentrated portfolio carries higher risk but offers greater potential returns.
Featured image via Shutterstock
