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The Champagne may've gone flat, but the future's bubbling up. We're looking ahead to trends that could shape this year and beyond, from AI and quantum computing to the return of the woolly mammoth. Stocks rallied last year (still sounds weird to say) with the S&P 500 ending the year up about 23%, matching 2023's gain. It's only the fourth time in the past century that the index has notched 20%+ returns for two years straight. The techy Nasdaq surged nearly 30%, fueled by AI hype, Fed rate cuts, and a perception that POTUS-elect Trump's policies will be favorable for markets. Crypto had a great run, too, with bitcoin more than doubling on the year. Still, stocks dropped sharply in December (no Santa rally this year) as investors took profits and uncertainty mounted. The market's mood soured last month after Fed officials signaled they're penciling in just two rate cuts this year. |
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AI hardware hits the mainstream… because there are only so many times you can upgrade a camera. Techies are trying to boost device sales by pushing AI in phones, PCs, and even pins (that one flopped). Gadgets marketed as "AI" often have AI functions pre-downloaded, so you can use them offline (if you need CGPT in the desert). Last year Apple launched the first iPhone designed for genAI (#AiPhone) and Samsung debuted its AI-powered Galaxy phone. Intel, Dell, and Microsoft rolled out AI PCs, and Meta infused AI into its Ray-Ban smartglasses. Next up: Apple's reportedly preparing an AI-powered smart-home tablet. Ride hailing goes robo… Robotaxis are flooding urban roads with Alphabet-owned Waymo leading the pack (it clocks 150K paid rides/week in cities like LA and SF). This year, Waymo's teaming up with Uber to bring driverless rides to Austin and Atlanta, with plans to expand to Miami in 2026 (Lyft's also rolling out autonomous lifts). And Tesla's scouting Texas for robotaxi tests. Meantime, GM's giving up on its Cruise robotaxis and will pivot the tech to autonomous personal cars. By some estimates, driverless rides could make up half of US taxis by 2040. Gaming's cloudy skies… Cloud gaming is looking more like a console killer than ever. Nvidia's GeForce Now, which connects gamers to a high-powered virtual PC for up to $20/month, had 25M+ subs in 2023. Microsoft's Xbox Game Pass is expanding its cloud library, while Sony's PlayStation added cloud support to its Portal handheld in November. As quality improves, more users could choose to skip the next console update. Console makers might like that just fine: Microsoft loses up to $200 on every Xbox it sells. Reusable rockets blast off… and off. Galactic startups like Rocket Lab and SpaceX are developing and launching reusable rockets that've redefined the business of space. Getting payloads (picture: Starlink satellites, people) to orbit is up to 65% cheaper with reusables versus one-offs, and it's opened up what Rocket Lab's founder said is a $10B to $20B market — one that's getting crowded. Jeff Bezos said his Blue Origin New Glenn reusable rocket is ready to go. European company Maiaspace said its reusable launcher will be ready in 2026. |
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2025 is here… is your portfolio ready? |
- Exposure to the 100 largest non-financial companies listed on Nasdaq…
- Including the Magnificent 7 (Amazon, Apple, Google, Meta, Microsoft, NVIDIA, and Tesla)
- Long-term1 as well as short-term (NDX: +26.53%) outperformance over the S&P 500 (+25.96%)2
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Learn about all the ways you can access the innovation of the Nasdaq-100 here. |
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2025 is here… is your portfolio ready? |
- Exposure to the 100 largest non-financial companies listed on Nasdaq…
- Including the Magnificent 7 (Amazon, Apple, Google, Meta, Microsoft, NVIDIA, and Tesla)
- Long-term1 as well as short-term (NDX: +26.53%) outperformance over the S&P 500 (+25.96%)2
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Learn about all the ways you can access the innovation of the Nasdaq-100 here. |
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Entering the quantum era… Google recently teased a quantum chip (meet Willow) that it said could solve problems in under 5 minutes that today's top computers would take 10 septillion years to work out. Related stocks like Rigetti Computing popped. Techno-optimists say quantum tech could speed up drug development, advance AI, and improve weather forecasting. But worriers wonder if supercomputers could outsmart the backbone of tech security: encryption. That possibility has some in crypto concerned, while others say it won't happen anytime soon. Wall Street's crypto makeover… Corporates like Goldman Sachs, Robinhood, and BlackRock have talked about bringing securities like stocks to the blockchain (FYI: Sherwood Media is an independent subsidiary of Robinhood). Tokenized securities are like crypto-fied stocks that could usher in 24/7 trading, faster settlement, and lower transaction costs. The wheels are in motion. Just last month, digital asset co Prometheum said it raised $20M to roll out a tokenized securities trading "ecosystem," and banks are developing shared blockchains. Analysts predict a $2T to $4T tokenized assets market by 2030. Resurrecting the dodo… Colossal Biosciences, a "de-extinction" startup with the bold goal of bringing back extinct animals like woolly mammoths, is still plugging away. Colossal said it's mere months from reconstructing the Tasmanian tiger's genome, and it's promised to produce a mammoth calf (well, a gene-edited elephant relative) by 2028. Scientists believe manufactured organisms will exist within the next decade. Some say Colossal's cellular work could help endangered species and genetically improve animals' resistance to toxins. Techy trash solutions… AI-powered trash-sorting robots (WALL-E?) could soon help limit landfill litter, a big methane emitter. In the short term, companies are limiting single-use plastics and switching to biodegradable substitutes like cellulose and seaweed. The EU even plans to make all its packaging recyclable by 2030. What's left of tomorrow's trash could skip the garbage truck: Stockholm and Seoul are installing underground tubes that'll suction waste away, and possibly charge residents who overuse the "not recyclable" tube. |
Charting some of the biggest trends of 2024, and where they might go this year. Read more. |
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- Cryogenic-freezing companies say the practice could one day revive the dead.
- Countries want to build "sovereign AI," but the state-controlled systems could be risky.
- The robots are serving: a day in the life of an Nvidia-backed food-delivery bot.
- Wearables like smart watches could eventually be powered by body heat.
- Elon Musk said that by 2040 there'll be at least 10B humanoid robots.
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- Thursday: Initial jobless claims and construction spending
- Friday: ISM manufacturing and auto-sales data
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Authors of this Snacks own bitcoin and shares of: Alphabet, Apple, GM, Microsoft, Nvidia, Robinhood, Rocket Lab, Sony, Tesla, and Uber |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more |
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