CFRA has a “strong buy” rating and $418 price target for CRM stock, which closed at $354.85 on Dec. 11. Microsoft is the world’s largest software company and is best known for Windows, Office and Azure cloud services. He says Microsoft has gone all-in on AI by investing heavily in infrastructure and services.
About Meta Platforms
This involves 1) identifying themes and norms that will become standard by 2025; and 2) identifying forward-thinking companies most boldly and effectively positioned for this new future. Your knowledge hub for technology, gaming, travel, entertainment, sports, finance, education, health, programming and more. In the ever-evolving landscape of technology, cybersecurity has emerged as a critical sector. Heading into 2025, Meta plans to develop its own search engine powered by its Meta AI chatbot. Plus, with its Quest virtual reality (VR) headset, the company is starting to see some payoff for its investment in the metaverse, which was over $45 billion as of October 2024. Jeff began his career in print, working at local newspapers in Virginia, Ohio, Arizona and North Carolina.
Is technology the best sector in the stock market?
Individual stocks can be very risky, and you need to be aware of the risks before you buy. Oracle is a multinational software corporation that specializes best tech stock to buy 2025 in database applications and cloud computing. Founded by Larry Ellison in 1977, today Oracle is among the biggest software developers in the global market. The company’s software and hardware applications have powered the rise of the internet for more than four decades.
Tech Stocks: Frequently Asked Questions (FAQs)
- The company specializes in endpoint security but has aggressively expanded its platform with product modules.
- Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
- Google, its crown jewel and also predecessor, was founded in 1998 in Menlo Park, Calif., as a project led by Sergey Brin and Larry Page at Stanford University.
- 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.
- Should you need such advice, consult a licensed financial or tax advisor.
The AirPods Pro deliver noise cancellation that’s effective at tamping down the volume of your surroundings in all but the most hectic environments. Their sound quality is on another level compared to the regular AirPods — helped in no small part by the in-ear seal you get from their silicone ear tips. That would be quite the feather in the cap of current shareholders, who are already enjoying 87% returns over the past 52 weeks.
MarketBeat Products
CFRA has a “strong buy” rating and $1,231 price target for NOW stock, which closed at $1,147.18 on Dec. 11. Qualcomm’s diversified portfolio, which includes mobile chips, 5G technology, and IoT solutions, provides multiple avenues for growth. Their commitment to innovation and their ability to adapt to new technologies make them a strong contender for 2025. With a strong market position and a history of consistent revenue growth, Qualcomm is a solid choice for tech investors. Adobe produces creative content software and other applications used for marketing and e-commerce. Adobe shares are down significantly this year, but Zino says that weakness is a buying opportunity given the stock’s attractive valuation and AI monetization opportunities.
IBM is a global technology company that provides enterprise software, infrastructure and services. Idlet says IBM is attractively valued given its broad exposure to key tech growth trends, including cloud migration and AI. He is bullish on IBM’s Granite generative AI models and its overall watsonx platform, which has use cases such as assisted software development and model governance and training.
Taiwan-based semiconductor firm ASE Technology (ASX) is not a design shop, but a manufacturer of third-party chips. But before you buy any of them, don’t forget that investing is fundamentally about the future. That means learning about the product pipeline and R&D beyond what’s on the surface. In fact, it’s one of just a small handful of companies that’s valued in trillions of dollars.
With a strong market position and a history of consistent revenue growth, AMD is a solid choice for tech investors. Alphabet’s diversified portfolio, which includes YouTube, Google Cloud, and Waymo, provides multiple avenues for growth. With a strong market position and a history of consistent revenue growth, Alphabet is a solid choice for tech investors. Steady chip demand has analysts looking for 35% annualized long-term earnings growth. Investors can buy this stock to benefit from AI’s continued build-out phase. Admittedly, Nvidia now almost entirely depends on data center chip sales.
With loyal customers and long-term certainty thanks to subscription-based revenue rather than one-off product sales, ADBE is a growth-oriented tech stock to consider for 2025 and beyond. As proof of the fact Adobe is looking to the future, it has invested heavily in “Firefly” artificial intelligence tools that continue to cause a buzz about the potential for computer assisted design in the 21st century. Today Broadcom specializes in chips for wireless communications, digital set-top boxes and networking hardware used in data centers and cloud computing. The company’s plans for future growth are focused on artificial intelligence applications, SIP manufacturing and cybersecurity. Semiconductors are the building blocks of artificial intelligence (AI) and other technologies. Arm Holdings (ARM 4.30%) creates intellectual property (IP) for chip design.
#6 – Palantir Technologies (NASDAQ:PLTR)
Idlet says software revenue growth will help IBM expand its earnings multiple over time, and the company’s consulting business will allow IBM to cross sell other products. CFRA has a “buy” rating and $249 price target for IBM stock, which closed at $230.12 on Dec. 11. Salesforce is the world’s largest provider of cloud-based customer relationship management software. Salesforce is no longer the high-growth stock it once was, but Zino says the company has opportunities for market share gains and profit growth in 2025 and beyond. In addition, Zino says Salesforce shares have a historically attractive valuation considering the company’s bullish outlook. He says the company’s Agentforce AI agent builder platform should continue to gain momentum throughout 2025, and Salesforce has significant upselling and cross-selling opportunities within its existing customer base.
While risk certainly cuts both ways, buying fast-growing tech names is a very effective way of boosting returns in a low interest rate environment. Taiwan Semiconductor Manufacturing Company could be the biggest tech company you’ve never heard of. Founded in 1987, Taiwan Semi is the world’s largest independent manufacturer of semiconductor chips and makes more than 11,000 products. With advancements in artificial intelligence (AI), 5G technology, and quantum computing, the landscape is ripe with opportunities. Companies that are at the forefront of these innovations are poised to see significant growth.
- Since 2000, investors have profited from the dawn of the internet, then the emergence of the smartphone and all that entailed.
- SHOP is projected to grow its top line by around 20% this year and next, while adjusted profits should grow by 30% or more in 2024 and 2025.
- Your knowledge hub for technology, gaming, travel, entertainment, sports, finance, education, health, programming and more.
- Their sound quality is on another level compared to the regular AirPods — helped in no small part by the in-ear seal you get from their silicone ear tips.
- So whenever they go missing, you can track right where they are in the room using Apple’s Find My app.
- But you don’t have to stick to those seven stocks; there are other options for investors in technology stocks.
- Our second entry is, like Nvidia, poised to benefit from 2024’s dominant narrative in the coming year — artificial intelligence.
A group of businesses that make their money by innovating … well, their innovations have a tendency to upend their own industries again and again and again. Investors who want to buy tech stocks can do so in a brokerage account or an individual retirement account (IRA)—and, in some cases, a 401(k). If you’re just beginning your investing journey or looking for a new way to trade, check out our list of the best online brokers and the best investment apps. Regulators can change the landscape for emerging technologies rapidly when things go wrong.
Are there any downsides to investing in tech companies?
CFRA has a “buy” rating and $220 price target for AVGO stock, which closed at $183.20 on Dec. 11. Apple produces the iPhone, iPad, Apple Watch, Mac computers and other personal computing devices. In addition, its services segment includes its App Store, Apple Music, iCloud and licensing businesses.
In contrast, even Nvidia, with its enviable growth, maintains a forward PE ratio of 32 — a paltry figure when compared to Palantir. This means that the odds of a correction — and a steep one, at that, are quite high — and investors should consider at which valuation PLTR stock would align with their risk tolerance. AMD has been making waves in the tech industry with its focus on high-performance computing and graphics. Their innovative approach to chip design and their commitment to competition make them a strong contender for 2025.
Nvidia’s business has soared to over $130 billion in trailing-12-month revenue, and analysts believe that will rise to $250 billion by the end of next year. The company’s next-generation AI chips, Blackwell, have been a tremendous success. Nvidia has a product roadmap for the next several years as AI companies seek better chips to make their models as intelligent and cost-efficient as possible while using as little energy as possible. New technology is gripping society, affecting how people and businesses do things, and influencing the stock market. Each year tells its own story; thus far, 2025 has been shaky relative to the past two years. Unlike many Wall Street professionals who must obsess over short-term performance, individual investors can zoom out and look at the big picture.
Companies have cumulatively built and shipped more than 310 billion chips with Arm-based designs. Arm generates highly profitable revenue from royalties and fees on its IP. Arm-based chips enable numerous high-growth, chip-heavy applications, including personal electronics and phones, cloud computing and data centers, AI, self-driving vehicles, and more. Nvidia designs and sells high-end graphics and video processing chips used for personal computers, workstations, and other advanced computing servers and AI engines.
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. “This inherently means that memory companies broadly should earn more profits and FCF over the cycle than historical trends would suggest” writes RBC analyst Amit Daryanani (view Daryanani’s TipRanks profile). Facebook’s shares have been leveled by about 20% following a disappointing second-quarter earnings report. But long-term, the picture remains extremely compelling, and RBC thinks now is the time to jump in. As the leading designer and producer of high-end graphics processing units (GPUs), Nvidia is probably the business that is best positioned to benefit from the ongoing artificial intelligence boom.
