Top International Stocks to Invest in for 2025

Introduction:

As we approach 2025, the global economy presents both challenges and opportunities for investors. While growth forecasts remain modest, uncertainty surrounding potential trade wars adds to the complexity. U.S. markets have seen impressive gains in recent years, leaving investors searching for new ways to diversify their portfolios and reduce risk. One effective strategy is investing in international stocks, which offer exposure to global markets and industries less reliant on a single economy.

Below, we explore some of the best international stocks for 2025. These companies are known for their scale, stable operations, and ability to enhance a diversified portfolio.

Summary

1. ASML Holding NV (Ticker: ASML)
2. HSBC Holdings PLC (Ticker: HSBC)
3. Novo Nordisk A/S (Ticker: NVO)
4. Nestle SA (Ticker: NSRGY)
5. SAP SE (Ticker: SAP)
6. Tencent Holdings Ltd. (Ticker: TCEHY)
7. Toyota Motor Corp. (Ticker: TM)
8. Why Diversify with International Stocks?

1. ASML Holding NV (Ticker: ASML)

Market Cap: $298 billion

ASML, headquartered in Veldhoven, Netherlands, is a linchpin in the global semiconductor supply chain. The company designs and manufactures photolithography machines, which are used to etch patterns onto silicon wafers, a critical step in semiconductor production. Its extreme ultraviolet (EUV) lithography systems represent cutting-edge technology, enabling the production of smaller, faster, and more energy-efficient chips.
ASML's technology is indispensable to major semiconductor manufacturers like Intel, Samsung, and Taiwan Semiconductor Manufacturing Company (TSMC). Its EUV systems are sold for millions of dollars each, providing a strong revenue base. Moreover, the company's service and maintenance contracts create recurring income, offering stability even in volatile market conditions. With the semiconductor industry projected to grow rapidly due to demand for advanced chips in AI, 5G, and IoT applications, ASML stands as a cornerstone investment in technology.

2. HSBC Holdings PLC (Ticker: HSBC)

Market Cap: $180 billion

HSBC is one of the world's largest banking institutions, with deep roots in Asia, Europe, and the Americas. The bank's global footprint allows it to capitalize on growth opportunities in emerging markets while maintaining stability in established ones. Its services range from retail and commercial banking to wealth management and investment banking, catering to individuals, small businesses, and large corporations alike.

What sets HSBC apart is its focus on high-growth regions, particularly Asia, which generates over half of its revenue. This strategic alignment with dynamic economies ensures a steady influx of business. Despite challenges in the global financial landscape, HSBC has maintained strong profitability, driven by its diversified revenue streams and conservative risk management practices. Its robust dividend yield of approximately 4% makes it a favorite among income-focused investors looking for global exposure.

3. Novo Nordisk A/S (Ticker: NVO)

Market Cap: $351 billion

Novo Nordisk is a Danish pharmaceutical giant renowned for its expertise in diabetes care and obesity management. The company’s diabetes portfolio, including insulin products like Levemir and modern treatments like Ozempic and Wegovy, dominates the market. Wegovy, a GLP-1 receptor agonist, has gained immense popularity for its effectiveness in weight management, driving record-breaking sales of $2.5 billion in Q3 2024.

Novo Nordisk also invests heavily in research and development, Ensuring a pipeline of innovative therapies to sustain growth. The company’s strategic expansion into new markets and partnerships with healthcare providers further strengthen its position. Despite short-term fluctuations in stock price, Novo Nordisk’s century-long legacy and focus on addressing global health challenges make it a resilient and rewarding investment.

4. Nestle SA (Ticker: NSRGY)

Market Cap: $208 billion

Nestle, founded in Switzerland, is synonymous with global consumer staples. Its extensive product lineup spans categories like confectionery, beverages, baby food, pet care, and frozen meals. Iconic brands such as Nescafé, Gerber, Purina, and Maggi ensure that Nestle remains a household name worldwide.

The company has been proactive in responding to changing consumer preferences, introducing healthier product variants and expanding into plant-based foods. Nestle's strong presence in emerging markets, where disposable incomes are rising, supports its growth prospects. With over 150 years of operational experience and a commitment to sustainability, Nestle is a stable option for investors seeking steady dividends and low-risk exposure to the consumer sector.

5. SAP SE (Ticker: SAP)

Market Cap: $307 billion

SAP, based in Walldorf, Germany, is a leader in enterprise application software, offering solutions that enable businesses to streamline operations, manage customer relationships, and optimize supply chains. The company’s transition to a cloud-first strategy has been transformative, with cloud revenue now accounting for a significant portion of its total income.

SAP’s flagship products, such as SAP S/4HANA, integrate AI and machine learning to help businesses operate more efficiently. These solutions are vital for industries ranging from manufacturing to healthcare, making SAP a trusted partner for over 400,000 customers worldwide. Additionally, the software-as-a-service (SaaS) model ensures predictable revenue and robust cash flow, positioning SAP for sustained growth in the digital age.

6. Tencent Holdings Ltd. (Ticker: TCEHY)

Market Cap: $454 billion

Tencent, headquartered in Shenzhen, China, is a technology powerhouse with a diverse portfolio that includes social media, gaming, cloud computing, and fintech. Its flagship app, WeChat, is an all-in-one platform with over 1 billion monthly active users, combining messaging, payments, and e-commerce.

The company’s gaming division, which includes titles like Honor of Kings and PUBG Mobile, generates billions in revenue annually. Tencent’s investments in artificial intelligence, cloud services, and big data analytics position it at the forefront of digital transformation in Asia. As China’s government implements policies to stimulate consumer spending, Tencent is poised to benefit significantly. Its dominant market share and diversified operations make it a cornerstone investment in the Asian tech ecosystem.

7. Toyota Motor Corp. (Ticker: TM)

Market Cap: $237 billion

Toyota, headquartered in Japan, is the world's largest automaker, producing a wide range of vehicles from fuel-efficient hybrids to rugged trucks. The company’s iconic Prius was one of the first hybrid vehicles to gain global popularity, and Toyota continues to innovate in the field of green technology.

Unlike some competitors who rushed into fully electric vehicles (EVs), Toyota took a balanced approach, focusing on hybrids and hydrogen fuel cells. This strategy has proven wise, especially as the EV market faces challenges like high production costs and supply chain issues. Toyota’s global presence, with manufacturing facilities in over 25 countries, ensures its resilience in the face of regional disruptions. With a strong balance sheet, annual revenue exceeding $300 billion, and a commitment to innovation, Toyota remains a top choice for investors in the automotive sector.

8. Why Diversify with International Stocks?

Adding international stocks to your portfolio can protect against economic slowdowns in any single market. Companies like ASML, Novo Nordisk, and Nestle offer unique advantages in different industries, while firms like HSBC and Tencent Provide access to global financial and tech markets.

With these options, you can reduce risk and achieve better long-term growth. Consider these stocks to strengthen your portfolio in 2025.

FAQs

Q.1. Why should I consider investing in international stocks?
A.1. Investing in international stocks allows you to diversify your portfolio, reducing risk tied to a single economy. It also provides exposure to global markets and industries with growth potential.

Q.2. What are the risks of investing in international stocks?
A.2. The main risks include currency fluctuations, geopolitical instability, regulatory differences, and economic uncertainty in foreign markets.

Q.3. Which sectors do these international stocks represent?
A.3. These stocks represent diverse sectors such as technology (ASML, SAP, Tencent), finance (HSBC), healthcare (Novo Nordisk), consumer goods (Nestle), and automotive (Toyota).

Q.4. How do I start investing in international stocks?
A.4. You can invest in international stocks through global brokerage accounts, exchange-traded funds (ETFs), or mutual funds that focus on foreign markets.

Q.5. Are dividends higher in international stocks compared to U.S. stocks?
A.5. Some international stocks, such as HSBC, offer higher dividend yields compared to the average U.S. stock. However, dividend rates vary by company and sector.

Conclusion

Investing in international stocks is a smart way to diversify your portfolio and protect against economic uncertainties in any single market. Companies like ASML, Novo Nordisk, and Nestle bring unique strengths to the table, while HSBC and Tencent offer exposure to global financial and tech markets. By including these well-established and innovative companies in your investments, you can reduce risk and position yourself for long-term growth in 2025 and beyond.

Important Note: Please Read Before You Invest

We're just sharing some helpful tips, but remember, investing comes with risks. We can't promise that these tips will always work or that you'll make money. Everyone's financial situation is different, so it's smart to do your research or talk to a financial advisor before you invest. Using these tips, you agree that you're responsible for your investment decisions and results.