Could the red hot price of Scottish Mortgage break the FTSE 100 again in 2025?

At the beginning of 2024, I put in a few thousand pounds Scottish Mortgage Investment Trust (LSE: SMT). That was a good move – as I write this just before Christmas, Scottish Mortgage’s share price is up 17% year to date compared to a 4% gain FTSE 100 index (I do not include dividends here).

Can this growth-focused trust repeat and beat Footsie in 2025? I think so. Here is the reason.

Hot topics

The reason Scottish Mortgage shares will perform well in 2024 is that the investment trust provides exposure to companies in growing industries. I’m talking about industries like artificial intelligence (AI), cloud computing, online shopping, space exploration, and computer chips.

I fully expect these industries to continue to grow next year (which should be good for Scottish Mortgage). In most cases, these industries are expected to grow by 10% or more per year until 2030.

One industry I’m really excited about is AI. Currently, we are seeing the second phase of this technology, where companies are rolling out AI solutions that improve their products and drive revenue growth.

Other companies in the Scottish Mortgage portfolio that would do well in this category include Amazon, Shopifyagain Meta Platforms (all top 10). All of these businesses are very active in the AI ​​space and are introducing features across their product portfolios.

Growth stocks

Now, many stocks in the portfolio have performed well this year. For example, Nvidiawhich is currently in the top 10, is up 170% year to date.

I see many Scottish Mortgage stocks that have the potential to gain in 2025 as well. Another is Amazon. It has underperformed some Big Tech stocks in recent years and is now playing catch-up. With the salary going up a lot, I think it could do well next year although there are no guarantees, of course.

Another stock that could do well next year ASML. It works with the complex machines needed to make AI chips. There is some uncertainty here due to export restrictions. But if the orders are strong, I think the stock can do well.

Overall, I see a lot of strong stocks for 2025. If they do well, Scottish Mortgage’s share price should rise.

Anything can happen

Of course, in the stock market anything can happen in the short term. So Scottish Mortgage shares may not top the FTSE 100.

One factor that can cause weak performance is taking profits in technology stocks. They have worked well in the last two years to see a reversal.

Another interest. If they were to go higher, the prices of unlisted companies could have a big impact.

Otherwise, the FTSE 100 could have a purple patch. It hasn’t done much in the last five years, so it could pop and beat the investment trust.

My money is on the Scottish Mortgage Investment Trust to beat Footsie though. I look forward to another year of good earnings.