In a bold prediction, Barry Schwartz, President and Chief Investment Officer of Baskin Wealth Management, is making waves in the investment world with his top stock picks for September 2, 2025. His focus is squarely on North American large-cap stocks, highlighting major players like Taiwan Semiconductor Manufacturing Company, TFI International, and Costco.

Why Is the Market Soaring?

You might wonder how the S&P 500 estimates are soaring to new heights. The answer lies in the monumental growth of mega-cap companies like Nvidia, Amazon, and Microsoft. These firms, largely impervious to tariff impacts, are riding the tidal wave of demand for artificial intelligence and other technologies, all while benefiting from a solid U.S. consumer base.

Record Earnings on the Horizon

Despite the headlines focusing on potential pitfalls, the earnings growth narrative is more uplifting than ever. Analysts project that S&P 500 earnings will jump to an astonishing $265 per share in 2025, a remarkable 11.5% increase from 2024, with estimates anticipating a further 13.8% growth for 2026. Such impressive numbers warrant investors paying higher multiples for these rapidly growing companies.

Economic Factors Favoring Growth

Many experts believe that interest rates have peaked, paving the way for expected rate cuts in both 2025 and 2026. Coupled with stabilized inflation and the diminishing impact of tariffs—thanks to skyrocketing investments in AI—the economic outlook is positively sunny.

Opportunities in U.S. Companies

As a Canadian wealth manager, Schwartz focuses on finding the best opportunities in U.S.-based companies. Despite any critiques of the U.S. market, it's undeniable that American businesses continue to be world leaders. Unlike the traditional dominance of cyclical sectors, today’s top stocks are global tech giants boasting remarkable revenue streams and cash flow.

Stocks to Watch in September 2025

1. Taiwan Semiconductor Manufacturing Company (TSM NYSE)