Palantir, Profits, And Power: Beth Kindig Uses 2025 Trends To Find The Next Market Leaders

Despite a year marred by geopolitical tensions, DeepSeek fears, and persistent whispers of a tech bubble, the AI trade defied skeptics to anchor the stock market in 2025.

With the Nasdaq-100 finishing up 20.2%, I/O Fund analyst Beth Kindig has released a review of the year’s top 10 tech stocks, offering a blueprint for identifying the next wave of market leaders in 2026.

The ‘Real’ AI Trade Emerges

The 2025 market was defined by a decisive rotation toward the “physical” layers of the AI stack. While early boom cycles focused on chips, 2025 rewarded companies addressing critical infrastructure bottlenecks: storage, memory, and energy.

SanDisk Corp. (NASDAQ:SNDK) claimed the crown as the S&P 500's top performer with a stunning 559.4% return, driven by explosive demand for AI flash storage.

Similarly, Bloom Energy Corp. (NYSE:BE) surged 291.2% by solving power constraints for data centers, highlighting that the industry's most critical value drivers have shifted from digital hype to tangible hardware scarcity.

Palantir And The Profit Pivot

While hardware soared, Palantir Technologies Inc. (NASDAQ:PLTR) stood out as a rare software leader, delivering a 135% return.

Unlike many peers, Palantir's gains were underpinned by accelerating fundamentals rather than speculation.

Kindig notes that Palantir's Artificial Intelligence Platform (AIP) drove a massive revenue acceleration—hitting 62.8% year-over-year growth in the third quarter.

By embedding models into complex workflows, Palantir proved that AI can drive real commercial value, achieving a “Rule of 40” score of 114% and separating itself from competitors relying on unproven narratives.

Blueprint For 2026

Looking ahead, Kindig argues that 2025 provided a clear signal for 2026: follow the scarcity. The top performers were companies that turned high demand into operating leverage and margin expansion.

“Reflecting on 2025 is vital; it provides the blueprint for 2026,” Kindig writes.

As the AI narrative matures, the focus will likely remain on companies that can secure competitive moats in memory, storage, and energy—the physical pillars required to keep the digital economy running.

Top 10 Tech Stocks Of 2025 Performance Review

Here are the top 10 stocks of 2025 flagged by Kindig.

Editor’s Note: Based on the specific financial metrics and strategic clues provided—such as the optical interconnect focus and the gaming asset divestiture—market analysis suggests the final two unnamed stocks are likely Lumentum Holdings Inc. (NASDAQ:LITE) and Applovin Corp. (NASDAQ:APP), though this is a deduction and remains unconfirmed without access to the full report.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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