Red-hot chip stock Micron (MU, $52.79) manufactures semiconductor devices, primarily NAND and DRAM memory. Luckily for MU, all roads in 2025 lead to data creation, says RBC Capital. RBC Capital notes that Facebook has made substantial progress in its AI and ML efforts as it moves to capitalize on its massive scale and resources. “The amount of user data FB can leverage – and we point to its 2B+ users on FB platform alone – we think gives the company a unique advantage,” RBC writes. Facebook can use these new AI and ML capabilities to better refine their text analysis, ad targeting and newsfeed sorting, to name a few examples. In 2024, Apple stock provided a 37.51% return and was trading at $255.27 at press time.
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He expects Microsoft will steadily roll out additional AI products and features on a quarterly basis in 2025. CFRA has a “strong buy” rating and $490 price target for MSFT stock, which closed at $448.99 on Dec. 11. Accenture is a global information technology services firm that specializes in consulting and outsourcing. Idlet says Accenture has consistently demonstrated its ability to attract talent and maintain valuable partner relationships.
#6 – Palantir Technologies (NASDAQ:PLTR)
Their recent advancements in AI-driven healthcare and autonomous vehicles make them a strong contender for continued growth. If the explosive potential of artificial intelligence (AI) isn’t enough to convince you to have at least some exposure to the technology sector, here are a couple of statistics that might. Technology stocks continue to outperform most of the other market sectors. And, even though many investors may be hesitant to buy or add to their positions in these stocks at historically lofty valuations, there’s still a lot of upside ahead. Technology stocks regularly are among the best-performing stocks on Wall Street, and they historically beat the broader S&P 500 index.
We may have financial relationships with some of the companies mentioned on this website. Among other things, we may receive free products, services, and/or best tech stock to buy 2025 monetary compensation in exchange for featured placement of sponsored products or services. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors. Jeff Reeves is a veteran journalist with extensive capital markets experience, Jeff has written about the investing world since 2008. His work has appeared in numerous respected finance outlets, including CNBC, the Fox Business Network, the Wall Street Journal digital network, USA Today and CNN Money.
What are the key factors to consider when investing in tech stocks?
Data breaches, revelations about data collection and other headlines spur regulators to pass new laws and regulations that can impede future tech sector growth. Owning shares lets investors participate in gains from breakthroughs that shape the computing and internet products consumers use everyday. ASML is a Netherlands-based company that designs and manufactures the machinery used by companies that make microchips. The company is a major supplier to two other firms on our list, Taiwan Semiconductor and Samsung. In fact, ASML has a near monopoly on making the photolithography machines employed by the global semiconductor industry, giving it an absolutely indispensable role in the global microprocessor supply chain. Before its name change, META had accumulated a market capitalization of over $1 trillion, built on the success of the Facebook social network and wildly popular subsidiaries like Instagram and WhatsApp.
- Professional services specialist Accenture (ACN) has made a name for itself by providing “DevOps” blueprints to top companies around the world.
- Cisco’s diversified portfolio, which includes networking hardware, software, and services, provides multiple avenues for growth.
- “VERX is starting to inflect as growth accelerates, aided by the benefits from the multi-year investment program,” he says, adding that two consecutive quarters of “pristine execution” should be rewarded.
- Facebook’s shares have been leveled by about 20% following a disappointing second-quarter earnings report.
- CrowdStrike’s Falcon security platform is cloud-native and uses AI to identify and stop threats faster.
- IBM’s diversified portfolio, which includes cloud computing, AI, and blockchain, provides multiple avenues for growth.
Young and the Invested’s Favorite Tech Stocks for 2025
The company currently represents more than 6% of the S&P 500 by weight, meaning that just about any index fund you invest in will own shares in this tech giant. RBC’s Matthew Hedberg (view Hedberg’s TipRanks profile) boosted his price target from $200 to $205 on July 26 following a mixed earnings report that included top- and bottom-line beats, but also light guidance. Nvidia’s graphics processing unit (GPU) chips are perhaps best-known for their gaming capabilities, but they’re increasingly being used for data-heavy AI applications.
But analysts are beginning to bid the stock higher in advance of the company’s earnings report in mid-November. Most notably, analysts from Bank of America raised their price target for NVIDIA to $190, a 38% increase. Instead of buying individual stocks, many financial advisors recommend that investors diversify, using investments such as an exchange-traded fund (ETF) or index fund. If you want to go this route, you can check out Forbes Advisor’s list of best total stock market index funds or use fund screening tools available on your investing platform to find the best options for you.
- To help you take advantage of the massive opportunities in technology stocks, we’ve profiled the 10 largest companies that make up this sector by market capitalization.
- With a strong balance sheet and a history of consistent revenue growth, Apple is a reliable choice for tech investors.
- RBC Capital notes that Facebook has made substantial progress in its AI and ML efforts as it moves to capitalize on its massive scale and resources.
- Almost 30 years on, the company remains an integrated circuit maker, producing chips that support everything from computers to phones and game consoles.
- While DRAM markets historically have gone through severe boom/bust cycles, RBC Capital is confident that the cycle(s) going forward will be more muted and less volatile.
- Maintaining a trajectory of rapid growth, having already risen to such high valuations, is a tall order indeed — but several of tech’s biggest players are gearing up for another year of impressive returns.
“VERX is starting to inflect as growth accelerates, aided by the benefits from the multi-year investment program,” he says, adding that two consecutive quarters of “pristine execution” should be rewarded. That said, the optimism about future growth is mostly centered around AWS, cloud, and the potential growth AI could deliver. To be fair, ADBE stock itself hasn’t been a great story over the past few months. Shares have bucked the broader market’s bull trend, falling into bear territory amid, among other things, weak guidance for current-quarter revenues. Headquartered in San Jose, Cali., Broadcom is one of the oldest and largest semiconductor manufacturers. The company began as a division of Hewlett-Packard in 1961, and was spun off as Agilent Technologies in 1999.
But you don’t have to stick to those seven stocks; there are other options for investors in technology stocks. In this special presentation, we’re looking at seven tech stocks that are strong performers now and are likely to continue growing into 2025 and beyond. The Magnificent 7 are the largest technology stocks as measured by market capitalization. Their total market capitalization is about $12 trillion — nearly 23% of the entire U.S. stock market. And it’s more than the combined market capitalization of every company in China, France, Canada, Japan, and the United Kingdom. With hundreds of billions of dollars pouring into index funds each year, that helps sustain growth for shares of the largest tech companies.
Even with venting and the other measures Apple has taken to improve comfort and reduce that clogged-up sensation, some people just prefer the regular, one-size-fits-most AirPods. The AirPods Pro have an impressive transparency mode, but the AirPods 4 don’t need to pipe in your surroundings; you can always hear what’s happening around you. If you want the earbuds that guarantee you’ll get the latest and greatest software features from Apple, the second-generation AirPods Pro should be at the top of your list. And if you’re the type of person to misplace things, you’ll be thankful that the earbuds’ case has a U1 chip for pinpoint location finding. So whenever they go missing, you can track right where they are in the room using Apple’s Find My app. Stake crypto, earn rewards and securely manage 300+ assets—all in one trusted platform.
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The story with SentinelOne is the way its AI platform helps provide cutting-edge protection, including those coming in from AI. The company is adding customers, which is verified by year-over-year revenue growth of 33% in its most recent quarter. More importantly, this was the first quarter in which the company posted a profit. As of October 30, 2024, NVDA stock was trading near the consensus price target of around $143.
With a strong balance sheet and a history of consistent revenue growth, Nvidia is a solid choice for any tech-focused portfolio. Many tech companies can be quite volatile as they pursue their long-term potential, often at the cost of short-term profits—or even short-term stock performance. One of the most common downsides of investing in tech stocks is that they can move up and down much more dramatically than sleepy sectors such as utility stocks or consumer staples. Here are 10 of the top tech stocks to buy for future growth, according to RBC Capital.
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Remember to conduct thorough research, analyze financial metrics, evaluate industry trends, assess management, and consider market sentiment. Be aware of the risks and challenges, and use diversification strategies to manage risk. With the right approach, you can build a robust tech portfolio that capitalizes on the growth potential of the tech industry. The company continues to grow steadily, with Vertex reporting a 16%-plus jump in revenues for full-year 2023, and analysts projecting roughly 15% annual top-line growth for the next two years.
The company’s success is due to its pronounced shift to capture the digital advertising market. In the second quarter of 2024, that generated $38.3 billion in revenue for the company. NVIDIA is the clear leader in the high-performance graphic processing units (GPUs) that are needed to power AI applications. Most industry analysts are forecasting the need for hundreds of billions to be spent to keep up with demand. Morgan Stanley analyst Chris Quintero rates VERX at Overweight and calls the stock one of his favorite “SMID-cap” ideas right now.
