2025: a great opportunity for investors to get rich and work towards a second income?

To earn a second income from investing, we typically need a good pot of money. Dr James Fox explores where the opportunities could lie in 2025.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Young mixed-race woman jumping for joy in a park with confetti falling around her

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Generating a second income through investing is a goal many aspire to. Immediately achieving significant passive income is challenging without substantial capital to start with. However, I think 2025 presents unique opportunities for investors to build wealth and work towards future income streams.

The US market remains expensive and continues to attract global capital — and suck global capital away from other markets. But savvy investors can find promising investment opportunities everywhere, particularly in advanced technologies.

The rapid advancements in artificial intelligence (AI), quantum computing, biotechnology, and gene editing, to name a few, are creating exciting investment landscapes. The global AI market is projected to compound at around 30% for the rest of this decade. Even better, this technological advancement is also supercharging the pace of global innovation.

Should you invest £1,000 in Barclays right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays made the list?

See the 6 stocks

For investors looking to capitalise on these trends, diversification is key. A portfolio of well-chosen investments could prosper in 2025 as markets adapt to emerging technologies, shifting economic conditions, and evolving global dynamics. 

Success starts in 2025

So, where could investors look for success in 2025? Well, there’s a plethora of opportunities in the US and the UK, as well as elsewhere in the world.

Here are some investment options that rank well on a quantitative basis. Most of these have strong price-to-earnings-to-growth (PEG) ratios. The PEG ratio has traditionally been a useful tool for investors, indicating how expensive a company is relative to its growth forecast.

2024 PerformancePEG ratio
Celestica231%0.88
Gorilla Technology Group302%0.7
Nu Holdings31%0.5
IonQ264%N.a.
Advanced Micro Devices-11%0.9
Power Solutions International1,430%0.5
Blue Bird Corporation46%0.77

While past performance and PEG ratios are no guarantees of growth, investors can consider these stocks as potential starting points for building wealth. By putting £500 a month into an ISA and investing in top-rated stocks, investors could put themselves on the path to getting rich and, in the long run, generating a strong second income.

AI can push this stock higher

Celestica (NYSE:CLS) is a compelling investment opportunity in the current AI-driven market, in my view. With a remarkable 231% return over the past year, the stock isn’t short on momentum.

Despite this surge, the company’s valuation remains attractive, trading at 24 times forward earnings with an expected 28% compound annual growth rate in earnings. This results in a favourable PEG ratio of 0.88, indicating potential undervaluation.

Celestica’s success is largely attributed to its Cloud Computing Solutions segment, where the company’s computer hardware has seen increased demand by hyperscalers. Moreover, management’s strategic shift towards higher-margin cloud computing operations has paid off — the CCS segment now accounts for over two-thirds of revenue and grew by 42% in Q3.

Concentration risk does present a concern for investors, with 10 clients representing two-thirds of the business. But I think Celestica’s strong position in the AI and data centre market makes it an attractive option for investors seeking growth and value in the technology sector to consider.

AI Revolution Awaits: Uncover Top Stock Picks for Massive Potential Gains!

Buckle up because we're about to dive headfirst into the electrifying world of AI.

Imagine this: you make a single savvy investment in some cutting-edge technology, then kick back and watch as it revolutionises entire industries and potentially even lines your pockets.

If the mere thought of riding this AI wave excites you and the prospect of massive potential returns gets your pulse racing, then you’ve got to check out this Motley Fool Share Advisor report – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And here’s the kicker – we’re giving you an exclusive peek at ONE of these top AI stock picks, absolutely free! How’s that for a bit of brilliance?

Get your free AI stock pick

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

James Fox has positions in Advanced Micro Devices and Celestica Inc. The Motley Fool UK has recommended Advanced Micro Devices and Nu Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

4 REITs Fools own for passive income

REITs often have higher-than-average dividend yields compared to other stocks, making them a solid choice to consider for passive income…

Read more »

artificial intelligence investing algorithms
Investing Articles

Up 272% in just a year, is Palantir stock just getting started?

This writer recognises that Palantir has grown its business very well -- but does the stock price offer him an…

Read more »

Runner standing at the starting point with 2025 year for starting in new year 2025 to achieve business planing and success concept.
Investing Articles

Up 50%? The Aston Martin share price forecast is mind-blowing! 

If analysts are right, the Aston Aston Martin share price could absolutely rocket in the year ahead. Harvey Jones says…

Read more »

Investing Articles

As the S&P 500 drops, here are 2 Stocks and Shares ISA holdings I’m watching

Our writer has different views on how President Trump's tariffs might affect these two US holdings in his Stocks and…

Read more »

Surprised Black girl holding teddy bear toy on Christmas
Investing Articles

£10,000 invested in Tesla stock at Christmas is now worth…

Tesla stock has been one of best-performing investments of the past decade. But things haven't gone to plan for investors…

Read more »

Investing Articles

Up 279% in 5 years, could Meta stock keep soaring?

Meta stock has more than tripled in five years. This writer sees lots to like about the business but also…

Read more »

Pink 3D image of the numbers '2025' growing in size
Investing Articles

25% total return in a year? Is now the perfect time to buy BP shares?

BP shares are on the front line of today's global economic and political uncertainty but analysts think they can still…

Read more »

Affectionate Asian senior mother and daughter using smartphone together at home, smiling joyfully
Investing Articles

With Cash ISA changes coming, could now be the time to consider buying shares?

Changes to the Cash ISA could lead to greater investment in the stock market. This could be a good thing…

Read more »