Where to invest in 2025?

At the beginning of the year, investors are reviewing the assets in their investment portfolio and rebalancing them, so today we will try to understand the most promising sectors of the economy, which make sense to consider to buy now.

Artificial intelligence and machine learning continue to evolve at an astonishing rate and companies in the field of data processing, neural networks and machine learning are becoming one of the most important players in the global market. Companies such as NVIDIA, Google, Microsoft and other companies are actively developing their technologies, making a huge contribution to the development of AI and opening new opportunities for investors, experts predict that within the next 5 years the volume of the artificial intelligence market will grow several times. AI is already being actively applied in medicine, education, finance, transportation and manufacturing and has a stable long-term perspective for growth. Most likely in 2025 we will see these technologies massively integrated into everyday life and business processes. Investing in the AI sector can be done not only by buying shares of giant companies like NVIDIA, but there are already a huge number of startups in this sector that are developing innovative algorithms in data processing, autonomous vehicles, financial technologies and many other industries. Of course, the demand for AI products is also growing among the population, more and more often buyers expect “smart stuff” inside their new cars, smartphones and other sectors, big entrepreneurs give preference to robotic production, and along with the demand, the price of this technology is also growing. The development of AI is receiving government support and grants from many countries, including China, Russia, the European Union (through the Horizon 2020 program), and the United States (through the National Science Foundation NSF). And International organizations and research agencies such as Gartner and McKinsey are predicting rapid growth in the use of AI in the coming years. AI is expected to be a key driver of economic growth in various sectors.

ESG investment and green technology is the next sector that is seeing a global growth trend. The global need to take action on climate change is pushing people to create and promote companies and technologies to support the environment, and the renewable energy sector, hybrid energy systems, solar and wind farms remains one of the most promising in 2025. The world’s leading countries are striving to reduce carbon emissions, increase recycling efficiency, and create and support environmental projects. Many of the initiatives receive subsidies and tax benefits from the government, almost all countries of the world support the development of technologies that help reduce the human impact on nature, and it is likely that this trend will only strengthen in the coming years.

It also makes sense to consider buying shares or stakes in companies in the pharmaceutical and medical sectors. Currently, there are large-scale studies on genetics and personalized medicine being conducted by such companies as CRISP Therapeutics, Editas Medicine, and it is quite possible that the approach to the treatment of many known diseases, including chronic diseases, will change due to new discoveries in the future. Emphasis in research is placed on immune therapy taking into account the patient’s genetics, which means that in the future doctors will be able to select the most effective treatment methods not just to cure the disease, but for each individual patient with his or her specific health condition and predisposition to other diseases. This approach is fundamentally different from what we know now. In addition, recent years have clearly shown the world that medicine requires greater investment as it faces the need to find new drugs and create vaccines for new and previously unknown diseases (as was the case during the world pandemic COVID 19). So-called “cell therapy” is also being studied, and startups are emerging to study and treat neurodegenerative diseases, cancer treatment and other complex diseases, which, thanks to the development of technology (largely due to accelerated data processing using AI), saves time and makes it easier for laboratories and scientists to create and search for cures. All this may in the long term increase the quality and length of human life, and increase the demand for new therapies. The same forecast is also held by research agencies, for example, Grand View Research, which assume a significant growth in the sector of medicine and biotechnology in the next 5 years. The growth of investors’ interest in startups in the field of gene therapy and stem cell therapy is especially noted. And, of course, pharmaceuticals, like real estate, are probably eternal investment instruments, as everyone needs somewhere to live and maintain their health. 

Real estate still remains a reliable and promising asset, especially in major European cities, showing a stable and steady growth in value, as well as offering the investor additional passive income from long-term rent. If we talk about Prague, it is now facing a shortage of residential real estate and people are literally queuing up to buy apartments and houses, which of course affects the cost per square meter in the capital. Temporary price fluctuation ended last year, and now the cost of real estate is growing by the hour, and according to the forecasts of most real estate agencies and private real estate experts, this trend will continue for many years to come. It is also interesting that the demand is growing not only for the purchase or lease of residential real estate, but also commercial, objects in both sectors of the market is not enough and demand exceeds supply. Developers are actively entering the market with new projects, but nevertheless, at the moment, the number of offered real estate on the market is not enough.

Cryptocurrencies continue to integrate into the global economy, and in 2025, this market could become one of the key areas for investment. Despite the volatility, bitcoin, ethereum and other digital assets are increasingly viewed not only as tools for speculation, but also as long-term assets for capital preservation. Institutional investors and governments in countries such as the U.S. and China are actively exploring regulation of cryptocurrencies, which could increase their legitimacy and stability. The development of decentralized finance (DeFi), new technologies based on Ethereum 2.0 and Layer-2 are opening up new opportunities for investors. Layer-2 are technologies that run on top of the underlying blockchain and allow for significantly faster transactions and lower fees, making cryptocurrency networks more efficient and accessible to the masses. Major corporations, including PayPal and other financial giants, are already incorporating cryptocurrencies into their payment systems, which is only accelerating their adoption around the world. Combined with the growing confidence in blockchain technology and its increasing use in various sectors of the economy, the cryptocurrency market is one of the most promising areas for investment in 2025.

Another interesting area for investment is the space industry. Private companies such as SpaceX, Blue Origin and Virgin Galactic are actively developing technologies for satellite communications, space tourism and commercial flights, and demand for satellites and global Internet connectivity continues to grow. Government agencies including NASA and the European Space Agency are also increasing research funding, and countries such as China and the U.S. are even considering space as a strategic endeavor. Innovation in space infrastructure and the possibility of mining on asteroids, which could open up new markets, remain a key driver of growth. Morgan Stanley predicts that the space economy will exceed a trillion dollars in investment by 2040, and already today not only governments but also private investors are actively investing in it. Given the high rate of technological development and the decreasing cost of launches, the space industry is becoming not just a subject of research and fantasy, but a real opportunity for long-term investment.

The year 2025 is already opening up new perspectives for investors, where technology, environmentally positive projects and innovation will be the main drivers of growth. The world is changing rapidly: artificial intelligence is penetrating all areas of life, the space industry is turning from science fiction to business, and cryptocurrencies continue to be integrated into the global financial system. At the same time, green energy and biotechnology are not just gaining popularity, but are becoming key drivers of the global economy. But the main principle of successful investments remains unchanged – flexibility, diversification and strategic thinking. It is important not only to follow trends, but also to understand their essence, analyze risks and make informed decisions. In a world that is constantly changing, the winners are those who remain flexible and can see opportunities where others see uncertainty.