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5 Hottest Stocks Retail Investors Are Betting On This Month

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5 Hottest Stocks Retail Investors Are Betting On This Month

Retail investing remains a strong force in the 2025 markets. Individual investors are focusing on resilient stocks amid global trade disputes, AI breakthroughs, and healthcare innovation. With the S&P 500 down 4.7% year-to-date and institutional capital holding back, retail investors are moving into companies with durable financials and future-facing strategies. These five stocks lead the watchlist this month. Note: stock prices are as of May 5, 2025:

Broadcom (AVGO): $200.72 (-1.43%)

Broadcom has dropped 22% from its December high, mostly due to renewed U.S.-China trade concerns. Still, its AI chip strategy remains on track. The company creates custom XPUs for hyperscaler clients, optimizing performance and energy use. Management estimates a $60–90 billion addressable market from just three of its customers by 2027.

Its networking products, essential for scaling AI workloads, are also gaining traction. Broadcom posted a 25% year-over-year revenue jump and 44% growth in operating income in the most recent quarter. At 29.4 times forward earnings, it trades well below its five-year average and could rebound if macro conditions stabilize.

Retail investors may find this combination of performance and custom engineering a rare edge in a sector crowded by general-purpose chipmakers. Broadcom’s cash flow and dividend yield also offer support during broader market downturns.

Shopify (SHOP): $98.38 (-0.88%)

Shopify is down 25% from its February peak but continues to grow. The company supports over $300 billion in annual merchant volume and reported 31% revenue growth last quarter. It now serves global brands in addition to small businesses and is investing in localized payments and compliance tools.

Its AI tools help new sellers launch faster and help larger merchants scale. Despite a higher forward P/E of 66.2, analysts view it as justified given Shopify’s market share and upside in offline and B2B commerce. For retail investors betting on global e-commerce resilience, the current dip may be a chance to buy in.

Shopify also benefits from its developer ecosystem, which adds third-party tools and integrations at a rate few rivals can match. These create stickiness across its customer base, giving the platform high recurring revenue potential.

Vertex Pharmaceuticals (VRTX): $500.19 (-0.19%)

Vertex holds the leading market share in cystic fibrosis treatment. Its flagship product, Trikafta, delivered $10.2 billion of its $11 billion revenue in 2024 and has patent protection until 2037. But Vertex is also expanding its portfolio.

The FDA recently approved Journavx, a non-opioid pain treatment with a potential market of over 70 million patients. Vertex also launched Casgevy, a gene-editing therapy for blood disorders. The company holds $11.2 billion in cash and carries little debt. At 24.2 times forward earnings, it offers long-term upside without excessive risk.

The company’s strategy includes targeting rare diseases where competition is low and pricing power is high. Vertex reinvests a significant portion of revenue into research, giving it multiple paths to maintain leadership as newer therapies mature.

Intuitive Surgical (ISRG): $531.82 (+0.45%)

Intuitive Surgical has over 10,000 da Vinci systems installed worldwide. In the first quarter, procedure volume rose 18.5%, helping to drive a 19% revenue increase. The newer da Vinci 5 adds tools like tissue feedback and live video review to assist surgeons.

The company is also investing in analytics technology to enhance outcomes and expand its lead in robotic surgery. While trading at 56.6 times forward earnings, its market position and product demand support the premium.

Unlike many medical device companies, Intuitive also generates recurring revenue from instruments and maintenance contracts. This model provides consistency across economic cycles, which is attractive for individual investors looking for reliability.

Texas Instruments (TXN): $162.42 (-1.27%)

Texas Instruments builds analog and embedded chips used in cars, factories, and industrial systems. It’s not a high-growth play, but it is steady. Gross margins stay above 65%, and the company has returned over $100 billion to shareholders in 20 years.

TI owns most of its manufacturing capacity, which helps it avoid the supply issues common in fabless chip firms. For retail investors seeking stability, consistent dividends, and cash flow, it remains a strong candidate.

Its customer base spans thousands of industrial firms, many of which sign long-term contracts. TI’s reputation for reliability and backward compatibility means its products often remain in use for decades. This consistency appeals to investors with a long-term outlook who prefer predictability over speculative upside.

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