Despite the first month barely being over, 2025 is already proving a volatile year for both the stock – and cryptocurrency – market.
Though President Donald Trump’s re-election proved a significant rally catalyst, his assuming of office inaugurated a period of uncertainty with tariffs on allies and adversaries imposed with an executive order and some of them postponed within days of the initial announcement.
Market shocks also arrived from outside the U.S. as China’s novel DeepSeek artificial intelligence (AI) model called into question the magnitude of investments poured into the American technology sector while helping some struggling equity – such as Alibaba (NYSE: BABA) shares – soar.
Picks for you
In this climate, Finbold decided to consult DeepSeek – a platform also available on Finbold’s own AI price prediction tool – about how to build a winning portfolio for the year that promises to be volatile yet lucrative.
DeepSeek identifies critical 2025 sectors, favors big tech
As it was instructed to be thorough but keep the number of stock picks manageable, DeepSeek carefully considered a multitude of factors before ultimately identifying several critical sectors to invest in in 2025 and selecting ten standout companies from within them.
Specifically, the AI estimated that renewable energy, cybersecurity, various defensive sectors, and AI itself would be the wisest inclusions for the current year.
As for specific stocks, DeepSeek first identified Amazon (NASDAQ: AMZN) as a strong pick, explaining that its size, role in AI, and general position make it an attractive investment. The AI’s argument was similar for Alphabet (NASDAQ: GOOGL), though it also pointed toward the much-discussed area of quantum computing.
Simultaneously, Applied Materials (NASDAQ: AMAT) was also, in part, described as desirable due to the demand coming from the semiconductor industry – a demand driven by the AI boom.
Given the focus on technology, it may come as no surprise that DeepSeek also opined that cybersecurity will be a strong sector in 2025. Therefore, the AI picked Fortinet (NASDAQ: FTNT) for its hypothetical portfolio, highlighting this year’s software upgrade cycle and the expected revenue growth.
DeepSeek AI estimates defense, renewables, and healthcare will rise in 2025
Despite President Trump’s expected ‘drill, baby, drill’ approach, DeepSeek cautioned that renewables should also not be disregarded. Indeed, the AI recommended investors include NextEra Energy (NYSE: NEE) among their holdings while praising the company as a ‘dividend aristocrat.’
Elsewhere, DeepSeek did not fail to account for the geopolitical tensions as it forecasted Lockheed Martin (NYSE: LMT) would enjoy a strong year. Though it operates in a very different sector, the AI reached for a stock with a similar public perception immediately after – UnitedHealth (NYSE: UNH) – while assessing it is, at press time, undervalued due to the shock of late 2024 events.
Proving it did not only pick well-known or established blue-chip companies, DeepSeek made some niche recommendations as the eighth and ninth stock in the hypothetical portfolio.
It opined that Monolithic Power Systems (NASDAQ: MPWR) – a player in the field of power management for data centers, electric vehicles (EVs), and other sectors – is a strong investment.
Similarly, DeepSeek estimated that Constellation Energy (NASDAQ: CEG) – a nuclear energy stock – is well positioned for success in 2025 despite the recent bloodbath among such companies.
DeepSeek reveals how to add stability to the 2025 portfolio
Finally, the AI assessed that investing in Warren Buffett’s famous Berkshire Hathaway (NYSE: BRK.A, BRK.B) would offer much-needed stability to the hypothetical portfolio.
Having made the stock picks, DeepSeek also recommended how the portfolio ought to be divided. The AI would allocate 30% to technology and AI, 10% to cybersecurity, 15% to renewables, 10% to healthcare, and 15% to the defense industry.
The breakdown also revealed that the AI would seek stability not only in Berkshire Hathaway – which would get approximately 10% of the total investment – but also in treasuries, which would also take up 10% of the total investment.
Featured image via Shutterstock
