Executive Summary

Q3 2025 was an excellent quarter for the Disruption Aristocrats index, our quarterly list of the world’s top disruptive stocks. The average stock gained +21.0%, outperforming the S&P 500’s +7.9% by nearly threefold.

AI infrastructure and semiconductor leaders once again dominated performance, with Rambus (RMBS +62.5%), Ubiquiti (UI +61.5%), Arista Networks (ANET +47.3%), Micron Technology (MU +38.4%), Lam Research (LRCX +38.3%), and Alphabet (GOOGL +38.3%) leading the pack. The strength reflected a global rush to expand computing capacity for AI workloads, driving record demand for chips, memory, and networking gear.

Big Tech saw mixed results, with Alphabet (GOOGL +38.3%) outperforming the S&P 500 (+7.9%), while Microsoft (MSFT +5.3%) and Meta Platforms (META +2.1%) lagged on slower AI monetization and rising costs.

Biotech was flat overall, with Eli Lilly (LLY -1.7%) easing after a blockbuster first half. In contrast, Fortinet (FTNT -17.9%) and Intuitive Surgical (ISRG -16.9%) were the weakest performers, pressured by cybersecurity margin compression and a valuation reset in medical robotics. The pullback means Intuitive Surgical no longer outperforms the S&P 500 on a five-year basis and has been removed from the Disruption Aristocrats list.

Additions and Removals

Removals: Intuitive Surgical (ISRG -16.9%) as it no longer outperforms the S&P 500 on a five-year basis.

New additions: United Therapeutics (UTHR +48.4%) and Netflix (NFLX -8.9%).

Current Disruption Aristocrats (Q3 2025)

Nvidia (NVDA) – AI / Robotics

The undisputed leader in AI chips, powering everything from cloud data centers to autonomous vehicles.

Latest: Nvidia’s new Blackwell GPU architecture is now the gold standard for AI training efficiency, with major hyperscalers already scaling deployments across North America and Asia. Its expanding software and networking ecosystem—spanning CUDA, DGX Cloud, and NVLink—continues to tighten Nvidia’s control over the AI stack. Analysts see little credible competition through 2026, reinforcing its position as the backbone of global AI infrastructure.

Q3 2025 performance: +21.7%

Arista Networks (ANET) – AI / Cloud Infrastructure

Its high-speed switches and software form the backbone of modern data networks used by Amazon, Meta, and Microsoft.

Latest: Arista’s data-center networking platforms are becoming essential to the AI compute boom, where bandwidth and latency matter as much as raw power. Its new 800-gig switches are winning hyperscale contracts, while software-defined architectures reduce downtime and costs. Arista’s expansion into AI-optimized fabrics positions it to benefit from every GPU cluster built worldwide.

Q3 2025 performance: +47.3%

Broadcom (AVGO) – AI / Cloud Infrastructure

Designs the semiconductors that make global connectivity work—from smartphones to routers to data infrastructure.

Latest: Broadcom’s VMware integration expanded its reach into enterprise software, creating a hybrid model few rivals can match. The firm dominates custom silicon for hyperscalers and telecoms, and its push into AI accelerators gives it exposure across the entire compute stack. Investors increasingly view Broadcom as the quiet giant behind cloud connectivity.

Q3 2025 performance: +24.6%

Rambus (RMBS) – AI / Semiconductors

Specializes in high-speed memory and security tech that lets modern chips move data faster and more securely.

Latest: Rambus continues to define performance limits for next-gen computing. Its advanced memory interfaces are critical to AI workloads, and new partnerships with foundries are embedding its IP deeper across HBM, DDR6, and security architectures. Licensing revenue and visibility in AI hardware both surged this quarter.

Q3 2025 performance: +62.5%

Eli Lilly (LLY) – Biotech & Health Tech

A pharmaceutical powerhouse driving breakthroughs in diabetes, obesity, and neuroscience.

Latest: Eli Lilly’s GLP-1 franchise remains a global growth engine, funding expansions into Alzheimer’s, pain management, and cardiometabolic therapies. Manufacturing scale-ups and pipeline progress keep the company at the center of biotech’s next wave, though investor expectations remain high after a record first half.

Q3 2025 performance: -1.7%

KLA Corporation (KLAC) – AI / Semiconductors

Makes the inspection tools chipmakers use to detect microscopic defects—vital for advanced nodes.

Latest: KLA’s systems are indispensable for AI-grade manufacturing precision. Foundries are embedding its tools deeper into workflows to ensure yield consistency. With a growing service business and strong customer lock-in, KLA remains the hidden monopolist of semiconductor inspection.

Q3 2025 performance: +20.0%

United Therapeutics (UTHR) – Biotech & Health Tech

Pioneering treatments for rare diseases and developing lab-grown organs to address transplant shortages.

Latest: United Therapeutics is executing one of the boldest missions in biotech: 3D-printing organs for human transplantation. Encouraging trial results and fast-track FDA status for regenerative therapies are positioning the company as both a science leader and a high-margin operator.

Q3 2025 performance: +48.4%

Lam Research (LRCX) – AI / Semiconductors

Provides wafer-fabrication equipment essential to making advanced chips used in AI, 5G, and automotive electronics.

Latest: Lam is riding record fab investments as chipmakers race to expand AI capacity. New etch and deposition systems enable 3D stacking and power-efficient architectures. The company’s collaborations with TSMC and Samsung solidify its place at the core of next-gen manufacturing.

Q3 2025 performance: +38.3%

Micron Technology (MU) – AI / Semiconductors

Supplies the memory and storage that power AI workloads, smartphones, and data centers.

Latest: Micron’s rebound continues as AI memory demand drives pricing power. Mass production of HBM3 and tight supply have turned sentiment sharply positive. Design wins with Nvidia and AMD reinforce Micron’s role as a top-tier beneficiary of AI hardware adoption.

Q3 2025 performance: +38.4%

Ubiquiti (UI) – Connectivity & IoT

Builds plug-and-play networking gear used by small businesses and communities worldwide.

Latest: Ubiquiti’s streamlined product ecosystem and loyal customer base remain its moat. Expanding UniFi Cloud management and AI-driven diagnostics are opening enterprise opportunities while keeping operations lean. Ubiquiti’s cult-like user following continues to translate into outsized returns.

Q3 2025 performance: +61.5%

Applied Materials (AMAT) – AI / Clean Energy & Climate Tech

The materials-engineering leader enabling smaller, faster, and more efficient chips.

Latest: Applied Materials benefits from both the AI buildout and sustainability push. Its energy-efficient tools are now standard in leading fabs. The firm’s deep R&D into new materials ensures it remains at the forefront of transistor innovation.

Q3 2025 performance: +11.4%

Fortinet (FTNT) – Cybersecurity / AI

Delivers integrated cybersecurity systems protecting enterprise networks worldwide.

Latest: Fortinet’s unified network-security architecture remains best-in-class, but margin compression from hardware pricing weighed on shares. The company’s shift toward AI-driven subscription services is building a more durable revenue base.

Q3 2025 performance: -17.9%

Alphabet (GOOGL) – AI / Cloud Infrastructure

Combines massive data scale with leadership in AI research and applications.

Latest: Alphabet is embedding its Gemini AI models across Search, Cloud, and Workspace while scaling TPU production. Ad revenue remains resilient, and Waymo’s autonomous operations hit record mileage. Alphabet’s balance between innovation and monetization continues to impress.

Q3 2025 performance: +38.3%

Cadence Design Systems (CDNS) – AI / Semiconductors

Provides the design software every chip engineer relies on.

Latest: Cadence’s AI-assisted automation tools shorten chip development time and strengthen switching costs. Collaboration with top foundries keeps its design environment aligned with the most advanced nodes.

Q3 2025 performance: +13.5%

Meta Platforms (META) – AI / Digital Media

Owns the world’s largest social platforms and is building the next computing interface through mixed reality.

Latest: Meta’s AI-driven content systems are improving engagement and ad efficiency, but heavy spending in Reality Labs continues to weigh on profits. Its smart-glasses launch marks a step toward multimodal computing.

Q3 2025 performance: +2.1%

Microsoft (MSFT) – AI / Cloud Infrastructure

Anchors global enterprise computing with Azure, Office, and AI integrations.

Latest: The rollout of Copilot across Windows and Office is driving new enterprise adoption. Deeper OpenAI integration in Azure strengthens its AI moat. Despite high expectations, Microsoft remains one of the most profitable growth engines in tech.

Q3 2025 performance: +5.3%

PTC (PTC) – Robotics & Automation / AI

Brings digital transformation to manufacturing through industrial software and digital-twin platforms.

Latest: PTC’s ThingWorx and Creo platforms are becoming foundational tools in smart manufacturing. Growing ARR from cloud subscriptions shows the industrial digitalization trend is gaining momentum.

Q3 2025 performance: +19.6%

Netflix (NFLX) – Digital Media / AI

Turned streaming into a global habit—and continues to stay ahead through data-driven content strategy.

Latest: Netflix’s AI-driven localization tools are cutting costs and improving viewer retention, but slowing subscriber growth and rising competition pressured shares. The company’s push into live content and gaming could reignite growth longer term.

Q3 2025 performance: -8.9%

How We Select the Disruption Aristocrats

Each Aristocrat meets five quantitative and qualitative thresholds that separate durable disruptors from short-term performers:

• Sustained Growth: Five-year average revenue growth ≥10%.
  

• Investing in the Future: R&D spending ≥5% of revenue.
  

• Wide Moat: EBITDA margins ≥30%.
  

• Proven Leadership: Outperformed the S&P 500 over five years.
  

• Large-Cap Stability: Market cap above $10 billion.
  

Together, these filters identify world's top disruptive stocks that consistently turn innovation into durable, long-term growth.

Why It Matters

Quality disruptors tend to outperform the broader stock market. If you look at the best-performing stocks of the last decade – Nvidia, Apple, Google, Amazon, Microsoft, Meta – all have profited from disruption.

Companies on the Disruption Aristocrats list balance innovation with stability. They offer exposure to long-term megatrends without the volatility of early-stage stocks.

Methodology Overview

Each quarter, we screen global large-caps across profitability, reinvestment, and growth metrics, verify financials from public filings, and publish any additions or removals with commentary.

Sources: Company filings, FactSet, Bloomberg, and Disruption News research.

Disclaimer: For educational purposes only. Not investment advice.