Hot or Not, Stock Market Edition: 10/24/2025

Happy Friday. Here’s what’s moving and shaking in the market:

• HOT: Nvidia (NVDA) is slowly simmering again; Micron Technology (MU) gets (another) upgrade 
• NOT: Caterpillar’s (CAT) AI fail; Zen Ratings reveals cracks in the facade for NextEra Energy (NEE)

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🔥 HOT: Looks like Nvidia (NVDA) is slowly simmering again — it was recently upgraded from a C (Hold) rating to a B (Buy) in our Zen Ratings system. Why? First, it’s a slightly better value following a modest pullback; the stock is down about 2% in the past month, not a huge dip, but a big contrast to the stock’s typical “line go up” trajectory. There’s also a fresh wave of excitement about the stock following BofA’s recent bullish commentary on how increased AI and memory demand promises to buoy all major players. Looking at the Component Grades, NVDA boasts solid grades in key areas — it has an impressive A for Financials and Bs for Sentiment and from our proprietary AI factor. While speculative investors may have moved on, it looks like there’s still plenty of reason to keep NVDA on your radar. 

🥶 NOT: Turns out, AI projects don’t move the dial for EVERY stock. Caterpillar (CAT) recently announced an AI infrastructure project … But the stock is down about 4% in the past week and just got downgraded to a C (Hold) rating in our Zen Ratings system. Despite impressive 30%+ gains in the past year, do signs point to a slowdown? Let’s look at the Component Grades for more clues. While the company remains solid, with impressive Safety (Grade A) and solid Financials (Grade B), it’s held back by mediocre Value and Growth (both C grades) and, crucially, a rock-bottom Sentiment Grade of F. With tepid analyst action and waning investor enthusiasm, a wait-and-see approach might be best right now.  

🔥 HOT: Micron Technology (MU) has been in heavy rotation in our Strong Buy picks lately — and now it’s back on the Hot list thanks to an upgrade in our Zen Ratings system from B (Buy) to A (Strong Buy). The stock ranks an impressive #2 out of 69 Semiconductor stocks we track (What’s #1 today? Click here to see), a B-rated industry with a proven track record of market-beating returns in recent years. In addition to the stock’s recent earnings smash, MU is garnering continued excitement thanks to aggressive investments in next-gen chip design and a slew of Strong Buy ratings from Wall Street’s brightest and best — the stock has gotten a whopping 17 Buy or Strong Buy ratings in the past month. The bottom line? Micron’s impressive growth story and near-top percentile Zen Rating continue to make it watchlist-worthy. 

🥶 NOT: Yes, NextEra Energy (NEE) is up 14% in the past month, and select analysts believe it could see double-digit upside in the coming year. But as a D-rated stock in a D-rated industry, our Zen Ratings reveals flashing red warning signs all over the place. Despite buzz around green and regulated utilities, the Zen Ratings tell a starker story about the stock’s near-term potential. First, we should remind you that D-rated stocks have historically lost 4.5% annually. On top of that, the Component Grades reveal plenty of weak spots in the company’s fundamentals — the stock earns unimpressive Cs in just about every category including Value, Sentiment, and Financials, with a disappointing D for Growth. Amid today’s high-flying tech and semiconductor titans, this utility is a soft pass.  

What to Do Next?

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