2025's Multibagger Wave: How AI and Geopolitics Doubled Stock Prices

Your portfolio might've looked very different this year if you'd bet on the right sectors. According to Nikkei, the number of global stocks that at least doubled in price—so-called 'multibaggers'—surged in 2025. This massive rally was fueled by a relentless AI boom and heightened geopolitical risks that turned defense companies into market darlings.

The AI Infrastructure Gold Rush

The year's biggest winners were found in the AI supply chain. Japan's Kioxia and China's Zhongji Innolight emerged as standout performers. Investors' hunger for data center hardware drove prices to new heights. In Japan, foreign investors poured a net $38 billion into stocks, hitting a 12-year high. It's clear that the 'picks and shovels' of the AI era are where the real money was made this year.

Defense and Energy: The New Safe Havens

Geopolitical instability didn't just cause anxiety—it reshaped market leaders. GE Vernova saw its share price roughly double this year, riding the wave of energy transition and defense spending. At the same time, dollar worries and lower interest rates pushed commodities like gold and copper to record highs. This environment has created a unique dynamic where both high-growth tech and defensive industrial stocks are thriving simultaneously.