Mid-year review | Investment opportunities in US stocks for the second half of 2025: which of the five high-potential directions do you find Bullish?

In the first half of 2025, despite macro impacts such as tariffs and geopolitical issues, US stocks remain resilient and are reaching new highs.

Looking ahead to the second half of the year, under the wave of technological innovation, some specific sectors are expected to maintain high growth, while the US will re-enter a rate-cutting cycle. Lower interest costs will aid small-cap stock EPS growth, and the valuations of long-duration growth stocks will also receive more boosts. Therefore, small to mid-sized market caps and more growth-oriented sectors may generate excess returns.

This article focuses on discussing five sectors: AI, blockchain, medical, quantum computing, and space. Everyone is welcome to vote for the sector they are most optimistic about.

I. AI Main Line: Reshaping the Global Economy, Alpha Remains Significant.

The AI wave was initiated by OpenAI with the release of ChatGPT at the end of 2022. By 2025, in just two years, the leaps made by generative AI in reasoning and multimodal capabilities have repeatedly astonished the world, but the value space brought by future technologies such as video, general agents, and embodied intelligence is much greater than what exists now. OpenAI's GPT-5 is expected to be released in the second half of the year, reaching a level of 5 trillion parameters with native support for all modalities. If China's DeepSeek R2 overcomes computing constraints, it is also expected to be launched, leading to further expansion of the open-source ecosystem.

Blackrock's stock team continues to recommend maintaining or increasing investments in AI-driven stocks, even amid global trade fluctuations. They believe that 'AI Alpha' still exists. In other words, AI is not just a tech story; it is also a structural investment theme. Recently, Musk posted on X that 'AI and robotics technology will lead to budget surpluses and massive economic growth within 10 years.'

In light of the strong growth momentum in the AI sector, investors may focus on the following key main lines:

– AI Infrastructure: As the application and scale of AI continue to grow, the demand for computing power and storage will remain strong. At the recently concluded June Advancing AI Conference, AMD predicted that global GPU revenue will grow from $45 billion in 2024 to $500 billion by 2028, with a compound annual growth rate of 60%. Companies that stand to benefit most directly include:$NVIDIA (NVDA.US)$、 $Advanced Micro Devices (AMD.US)$ 、$Broadcom (AVGO.US)$、 $Marvell Technology (MRVL.US)$ and $Micron Technology (MU.US)$ Several chip design companies, as well as those almost monopolizing the manufacturing and COWOS advanced packaging sectors.$Taiwan Semiconductor (TSM.US)$。

– Cloud service providers: including those offering AI computing power support.$Amazon (AMZN.US)$ AWS,$Microsoft (MSFT.US)$Azure, Google Cloud,$Oracle (ORCL.US)$Cloud, and emerging ones.$CoreWeave (CRWV.US)$、$NEBIUS (NBIS.US)$ GPU cloud, as well as data center solution providers, such as relatively mature Equinix, Digital Realty, and those specializing in cryptocurrency mining or AI data center hosting.$Applied Digital (APLD.US)$、$Galaxy Digital (GLXY.US)$Etc.

– Upgraded "SaaS" - Agent track: Agentic computing disrupts the traditional assumption that human beings play a core role in executing tasks, workflows, and business processes, suggesting that intelligent agents will gradually become the main entities for task execution and decision-making. As agent applications begin to permeate into the application software market valued at over 630 billion dollars, this will create significant value opportunities.

– Energy support amid the surge in AI power consumption: The International Energy Agency (IEA) reports that by 2030, global data center electricity consumption will more than double. Nuclear energy, with its high energy density and low carbon emissions advantages, plays an increasingly important role in the global energy transition, while tax credits from the IRA bill promote investment in small modular nuclear reactors. $NuScale Power (SMR.US)$ 、 $Oklo Inc (OKLO.US)$ Startups that receive capital favor also seem to have high certainty in uranium mining and processing as fuel.

2. Blockchain and CNI Xiangmi Lake Fintech Index: Regulatory easing and innovation explosion, the grand narrative of RWA unfolds.

At the beginning of this year, Trump's signing of the executive order "Strengthening America's Leadership in Digital Financial Technology" and the repeal of Biden's Executive Order No. 14067 marks

a significant regulatory shift in the United States in the blockchain field. Its core logic is to stimulate private sector innovation by reducing regulatory barriers and solidifying America's leadership in global digital finance.

The combination of blockchain and financial technology will continue to create immense value, and investors can focus on the following core themes:

– Stablecoins：Stablecoins are reshaping the global cross-border payment landscape with their attributes of short settlement times and low costs. The recent introduction of the U.S. "GENIUS Act" and Hong Kong's "Stablecoin Regulation Draft" will also accelerate the development of stablecoins as a key bridge between fiat currency and the digital asset ecosystem. According to data from defillama, as of June 23, 2025, there are a total of 264 stablecoins worldwide, with a total Market Cap exceeding $250 billion. According to Standard Chartered Bank's predictions, the scale of stablecoins is expected to reach $2 trillion within three years.

– Exchange：$Robinhood (HOOD.US)$The recently announced Layer 2 focused on RWA and Stocks tokenization services marks an accelerated digital reconstruction of the trillion-dollar traditional financial markets (Bonds, Futures, Insurance, Real Estate, etc.). Despite the RWA market soaring to over $24 billion by June, mainly driven by private credit and U.S. Treasury bonds, the tokenization of Stocks, backed by a $50 trillion public Stocks market and the wave of tokenization of more RWA assets (Michael Saylor predicted in February that excluding BTC, the total scale of new digital economic assets on-chain could reach $590 trillion), provides significant TAM growth potential for cryptocurrency Exchanges.

– MicroStrategy: represented by $Bitcoin (BTC.CC)$ the long-term value of leading cryptocurrencies continues to rise, but direct purchasing channels for Institutions, such as Binance, are not only complicated but also involve tax issues and risks of fraud and illegal funds. Therefore, the demand for indirectly allocating digital currency through publicly listed companies in the U.S. stock market is increasingly strong. Currently, besides BTC holders, $Strategy (MSTR.US)$ there are also $Ethereum (ETH.CC)$ 、 $Ripple (XRP.CC)$ 、 $BNB (BNB.CC)$ 、 $TRON (TRX.CC)$ MicroStrategy imitators. It is important to note the unique flywheel effect, which can amplify both returns and risks; if cryptocurrency prices fall, the prices of such Stocks may plummet sharply.

3. Medical Care: The Dual Dividend Driven by AI Innovation and Aging.

Although healthcare Stocks may not have performed as well as other high-growth Sectors recently, drug innovation and relatively low valuations may present attractive prospects. The application of AI in the medical field is increasingly deepening, covering multiple aspects from drug development, disease diagnosis, personalized treatment plan formulation to Hospital Operation, becoming an important force driving Industry development.

Under the trend of interest rate cuts, pharmaceutical R&D Companies are the most benefited in terms of valuation, especially those focusing on innovative drug R&D, gene therapy, and cell therapy in cutting-edge fields. Goldman Sachs expects the GLP-1 weight loss drug market to exceed 100 billion dollars in 2025.$Novo-Nordisk A/S (NVO.US)$、$Eli Lilly and Co (LLY.US)$Market share exceeds 70%. Several Alzheimer's disease drugs have entered phase III clinical trials, with a potential market size reaching 50 billion dollars.

Elon Musk's Brain-computer Interface company Neuralink's conference also brought the Capital Markets' attention back to advanced Medical Devices, such as those laying out in the neural control track.$Medtronic (MDT.US)$、$Abbott Laboratories (ABT.US)$、$Boston Scientific (BSX.US)$、$LivaNova (LIVN.US)$Etc.

$Hims & Hers Health (HIMS.US)$ The cessation of collaboration with Wegory by Novo Nordisk does not seem to affect its long-term growth logic. Telemedicine will still be favored by users due to better privacy and convenience, data personalization, and cost advantages.

Four, Quantum Computing - Transitioning from Experiment to Commerce.

Currently, the international academic community generally believes that quantum computing will gradually achieve commercial implementation in the next 5 to 10 years. In the first half of 2025, breakthroughs in scale and stability of quantum computing are expected. IBM will launch a 2000 physical qubit processor and announce the 'Starling Project', with the goal of achieving a 200 logical qubit system by 2029, supporting 0.1 billion error-free computations. $Microsoft (MSFT.US)$ The atomic computing company has achieved entanglement of 24 logical qubits for the first time. $Alphabet-C (GOOG.US)$ The Willow chip has been released, overcoming the quantum error correction problem, with a 300% reduction in error rate. Jensen Huang stated in June that quantum computing is at a turning point, also announcing the integration of CUDA-Q in Blackwell, which accelerates quantum computing using GPUs and achieves synergy between quantum and classical accelerated computation.

NVIDIA expects the number of logical qubits to increase tenfold in five years and a hundredfold in ten years, just like Moore's Law. Morgan Stanley estimates that by 2030, revenue from quantum processors will account for 4% of high-performance computing expenditures, approaching trillion-dollar levels by 2035.

V. Space Economy: The Rise of the Trillion-Dollar New Economy

Investment opportunities in the Space Sector are extensive. In the first half of the year, SpaceXCompleted.completed 81 Falcon 9 rocket launches, achieving a single launch cost of less than 5 million dollars, and conducted in-orbit propellant transfer tests, paving the way for manned lunar landings;$Rocket Lab (RKLB.US)$the Electron rocket completed 67 successful launches in the first half of the year, setting a new historical high for the company and ranking second in launch frequency in the United States. With the increasing demand for satellite deployment, rocket manufacturing and launch service providers will continue to benefit.

In terms of satellite communications, the deployment and operation of Low Earth Orbit (LEO) satellite constellations are one of the hottest investment directions in the current space field. These constellations aim to provide global Internet access, IoT connectivity, and high-precision positioning services, which will significantly change the global communication landscape. Relevant companies include satellite manufacturers, operators, and ground equipment providers. In June, SpaceX announced it had produced 10 million satellites, and Starlink subscriptions surpassed 6 million; ASTS has launched 5 Block 1 BlueBird satellites and plans to deploy 100 satellites by the end of 2026 to achieve continuous coverage across the United States.

The emerging space tourism market, such as$Virgin Galactic (SPCE.US)$and suborbital flight experiences offered by Blue Origin, as well as the development and operation of commercial space stations, indicate that space will become a new destination for tourism and scientific research.

Morgan Stanley's "The New Space Economy" predicts that the global space industry could surpass 1 trillion dollars by 2040.

Risk warning.

The individual advanced Sectors mentioned face risks such as insufficient technology maturity, uncertainty in policy regulation, and excessive market speculation. The competitive advantages of various companies and changes in market share remain highly variable, and at the macro level, there are risks related to tariffs, U.S. debt issues, and the current high relative valuation of U.S. Stocks.

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