Top Stocks to Watch in March 2025: Nvidia, Tesla, Target & Market Trends

February was a tough month for stocks as excitement around artificial intelligence faded and concerns over the economy grew. The S&P 500 dropped 1.4%, giving back much of its January gains, while the Nasdaq fell 4%, marking its worst month since last spring.

With corporate earnings season winding down, investors will have fewer distractions and more time to digest economic reports and political developments. Here are some key stocks to keep an eye on this month.

Nvidia (NVDA): AI Conference Could Drive Stock Movement

Nvidia’s GPU Technology Conference (GTC) runs from March 17-21, with CEO Jensen Huang set to deliver a major keynote on March 18 at 10 a.m. PT. This annual event is closely watched by industry experts, and Nvidia is expected to unveil updates on its next-generation Blackwell Ultra chip and its Vera Rubin architecture.

Despite its strong position in the AI market, Nvidia’s stock has struggled this year. After a massive rally in 2023, the company lost nearly $600 billion in market value following the release of an open-source AI model by Chinese startup DeepSeek, which operates with fewer Nvidia chips than American models.

Some analysts argue the recent pullback is an opportunity to buy, as demand for AI technology remains strong. Nvidia’s stock rose 4% in February but is still down 7% in 2025. Investors will be closely watching GTC for potential catalysts that could reignite momentum.

Tesla (TSLA): Investor Concerns Over Musk’s Focus

Tesla had a brutal February, with its stock plunging 28% as concerns mounted over Elon Musk’s political involvement. Musk has become deeply engaged with the federal government, playing a key role in efforts to cut government spending.

Some investors worry that Musk’s attention is shifting away from Tesla at a crucial time. The company is working to launch full self-driving technology and its highly anticipated Cybercab, an autonomous ride-hailing service. Meanwhile, Tesla’s reputation may be taking a hit—European vehicle registrations dropped 45% in January, fueling speculation that Musk’s political views are affecting Tesla’s brand.

March will be a key month to see if Musk’s government involvement continues to dominate headlines or if he refocuses on Tesla’s core business.

Target (TGT): Earnings Report to Shed Light on Consumer Spending

Target will release its quarterly earnings report on March 4, offering fresh insight into how American consumers are spending in 2025.

The report comes after Walmart’s recent warning that sales growth is slowing, raising concerns that consumers are pulling back amid inflation and uncertainty over potential new tariffs. While Walmart’s business is more focused on essential goods, Target relies more on discretionary spending, meaning its results could offer a clearer picture of consumer confidence.

Target’s stock dropped 9% in February, leaving it down 8.1% for the year. If the company delivers a disappointing outlook, it could further shake investor confidence in the retail sector.

Momentum Stocks: AI Hype Cools Off

Several high-flying stocks that benefited from last year’s AI boom saw sharp declines in February. Palantir (PLTR), Applovin (APP), and Vistra (VST) were among the biggest losers:

• Palantir (PLTR): Down 32% from mid-February highs

• Applovin (APP): Dropped 38% from its all-time high

• Vistra (VST): Lost one-third of its value since late January

These stocks skyrocketed in 2024 on AI optimism but took a hit last month as investor sentiment shifted. Some analysts believe this is just a temporary correction, while others think AI stocks may have run too far, too fast. March will be key to determining if these stocks rebound or continue to slide.

Lennar (LEN): Homebuilding Faces Tariff Pressures

Homebuilder Lennar is set to release quarterly earnings on March 12, and investors will be paying close attention to how the company is responding to new trade policies.

The U.S. government is set to implement 25% tariffs on Canadian and Mexican imports on March 4, a move expected to increase homebuilding costs by 4-6% within a year, according to industry experts. The price of key materials like lumber, steel, and concrete could rise, putting pressure on housing prices.

Another potential issue is the labor force. If the government follows through on plans for mass deportations, it could shrink the pool of construction workers, many of whom are immigrants.

Lennar’s stock fell 9% in February, and its earnings report could provide important clues about how these economic shifts will impact the housing sector.

Key Takeaways: What to Watch in March

As earnings season winds down, investors will be closely watching economic data, policy decisions, and corporate events. Here are the biggest themes to follow:

• AI Sector Trends: Nvidia’s GTC conference could determine the next big move in AI stocks.

• Tesla’s Leadership Concerns: Will Musk’s political involvement continue to overshadow Tesla’s operations?

• Retail Outlook: Target’s earnings will reveal if consumer spending is slowing.

• Trade Policy Impact: New tariffs could raise costs for homebuilders like Lennar.

• Momentum Stock Rebound: Will AI-driven stocks recover or continue to decline?

March could be a crucial month for investors as market uncertainty grows, AI stocks face pressure, and economic shifts create new opportunities and risks.

Also Read: Interest Rates Hit 2025 Lows, but Stock Market Faces Economic Challenges