📈 S&P 500 at Record Levels! 5 Explosive Stocks You Need to Own Now!

October 2024 has delivered something every investor dreams about: the S&P 500 is hitting fresh all-time highs. Watching the market push upward can be exciting, but it also makes a lot of people nervous. I get it—there’s always the question of whether you’re buying into a peak, waiting for the drop that inevitably follows. But let me tell you something important: history shows that markets hitting all-time highs often keep going up.

In fact, the average return on the S&P 500 two years after reaching a new high is about 20%​. So instead of sitting on the sidelines, now might be the best time to buy into some stellar companies that still have plenty of runway. Let’s dig into five stocks that are primed for more growth despite the market's highs.

1. NVIDIA (NVDA) – The AI Powerhouse Continues to Dominate

I’ve seen many stocks rally hard, but NVIDIA in 2024 is on an entirely different level. Just to give you a sense of the magnitude, NVIDIA reported a record $30 billion in revenue for Q2 2025, which is a staggering 122% increase year-over-year. That’s not just good—it’s historic. This explosive growth is being driven by the AI revolution that NVIDIA is at the heart of.

What’s fueling this? NVIDIA’s Data Center division, which raked in an unprecedented $26.3 billion in Q2 alone, up 154% from the same period last year. This surge comes from the immense demand for NVIDIA’s GPUs, which power everything from generative AI to high-performance computing and data processing. They’ve partnered with industry leaders like Hugging Face and CoreWeave, further cementing their dominance in the AI cloud space​.

Even their gaming segment is on fire. Revenue hit $2.9 billion, up 16% from a year ago, as the gaming industry continues to thrive thanks to the popularity of AI-enhanced experiences and the ever-expanding library of RTX-powered games​.

I know what you’re thinking—how long can this go on? Well, consider this: AI adoption is still in its infancy, and NVIDIA’s GPUs are the backbone of this massive shift. This stock may seem expensive now, but with the rate at which AI is growing, we could see NVIDIA’s share price climb even higher in the coming years.

2. PepsiCo (PEP) – Rock-Solid in Good and Bad Times

PepsiCo is not just your everyday consumer staples stock; it’s a global juggernaut that thrives in all market conditions. They have continued to outperform, reporting Q2 2024 revenue of $22.5 billion, slightly lower than analyst expectations of $22.59 billion but still a respectable 0.8% increase year-over-year​. PepsiCo’s strategy of diversifying into healthier snacks, along with its robust beverage lineup, positions it for steady long-term growth. Despite inflationary pressures, the company increased its earnings by 7% year-over-year.

PepsiCo’s products are consumed more than one billion times a day across 200 countries. If you're looking for stability with a strong dividend (yielding 2.9%), this is a must-have stock. With a forward P/E ratio of 24.6, it offers solid value in uncertain times.

PepsiCo’s strategy of investing in healthier alternatives and sustainability is also starting to bear fruit. With products like SodaStream and a range of lower-calorie snack options, PepsiCo is tapping into the growing demand for health-conscious food and beverage choices. Their continued focus on sustainability—such as reducing plastic usage and shifting to more sustainable packaging—further strengthens their appeal to environmentally-conscious consumers.

Additionally, PepsiCo’s global presence—selling in over 200 countries—provides a cushion against regional economic slowdowns​.

3. Arm Holdings (ARM) – The Backbone of the AI Revolution

Arm Holdings is not just another semiconductor company; it’s the hidden giant behind many of the world’s tech innovations. The company’s chip designs are integral to billions of devices, from smartphones to data centers, and with the rise of AI, its significance is only increasing.

In Q3 2024, Arm posted strong financial results with revenue of $746 million, up 28% year-over-year​. This growth is being fueled by the company's deep involvement in the AI, automotive, and IoT sectors. Arm’s chip designs are found in 99% of smartphones globally, and its recent advancements in AI processing and security through its Armv9 architecture are powering the next generation of computing​.

One of the key highlights from this quarter is Arm’s focus on AI and machine learning, as its chip designs are enabling a wide range of applications, from autonomous driving to cloud computing. The company has also expanded into the automotive market, with Arm-based chips becoming a critical part of the AI systems in next-gen vehicles​.

While Arm’s revenue is already substantial, the company’s leadership in the tech space, particularly in cloud and edge AI computing, suggests that its growth is far from over. Arm is positioned to benefit from the increasing demand for AI-driven applications, making it a must-buy stock if you believe in the future of tech innovation.

4. Costco (COST) – The Retail Juggernaut That Keeps Thriving

When I think about retail companies that can weather any storm, Costco is always at the top of my list. In Q4 2024, Costco once again demonstrated its resilience, reporting net sales of $78.2 billion, a 1.0% increase from last year​. While the growth might seem modest compared to its usual numbers, there’s more to the story than just sales.

Costco’s unique membership-based model is what sets it apart from other retailers. During the quarter, membership fees generated $1.51 billion, and the company’s renewal rates continue to be off the charts, with a global renewal rate of 90.5%, and even higher in the U.S. and Canada at 92.9%​. Think about that for a second—over 90% of members stick around year after year. That’s some serious customer loyalty.

One of the reasons Costco thrives even when times are tough is its unbeatable value proposition. In times of inflation, consumers flock to Costco for bulk savings, and when things are good, they come back for the high-quality products. It’s a win-win, and that’s why Costco’s operating income increased to $3.04 billion for the quarter​. Even as other retailers face headwinds, Costco’s massive buying power and ability to keep prices low help them outperform in virtually every economic scenario.

But that’s not all—Costco isn’t just sitting still. They are continuing to expand globally, recently opening new stores across Asia and Europe, which will further fuel revenue growth in the coming years. With Costco's P/E ratio sitting at around 54.4, it might seem expensive, but you’re paying for consistency and long-term stability​. This is the kind of stock you want in your portfolio if you’re looking for both growth and reliability.

5. Alphabet (GOOG) – AI and Cloud Computing Powerhouse

When you think of tech giants, Alphabet often flies under the radar, but it shouldn’t. Alphabet, the parent company of Google, remains a cornerstone of innovation in AI, cloud computing, and digital advertising. If you're looking for a stock that consistently delivers across multiple revenue streams, Alphabet is the one.

Let me give you the latest data. In Q2 2024, Alphabet posted a 13% year-over-year increase in revenue, with their Google Cloud segment alone delivering a 28% rise in sales. This growth in cloud computing is pivotal as companies across industries are increasingly investing in digital transformation and artificial intelligence​.

But the key driver right now? AI. Google’s deep investments in AI, with its new products like Google Bard and Gemini models, are not only fueling its cloud services but also positioning Alphabet as a leader in the AI race​. These tools aren't just buzzwords; they are reshaping industries, and Google is providing the foundational infrastructure for businesses to leverage AI more effectively.

What’s even more impressive is their advertising business, which continues to dominate despite increased competition. Google Search remains a key revenue generator, while YouTube continues to innovate with new monetization strategies, contributing significantly to Alphabet's top line.

At first glance, Alphabet's stock might seem expensive, but with a forward P/E ratio of around 23, it's relatively undervalued for a tech giant with this level of innovation. With revenue from cloud services growing rapidly and AI advancements poised to lead the next wave of tech, Alphabet is a solid choice for anyone looking to ride the tech revolution.

Why Buying at an All-Time High Makes Sense

I get it—buying when the market is at an all-time high feels like asking for trouble. But here’s the thing: markets that hit new highs tend to keep going up. Timing the market is nearly impossible, and by staying out, you’re more likely to miss out on gains​.

Instead, focus on buying companies that are leading the charge in growth sectors—whether it’s AI, consumer staples, or retail giants. The five stocks I’ve outlined have strong fundamentals and clear growth prospects, making them smart buys even at elevated market levels.

If you’re waiting for a correction, you might end up regretting it. So, take the plunge and invest in companies with long-term staying power. Let’s ride this wave to the next milestone together!

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