Three Technology Stocks to Consider for Your $1,000 Investment in 2025
For many investors, choosing stocks under $10 a share seems appealing, especially when aiming for high returns. The excitement of discovering a “10-bagger”—a stock that appreciates tenfold—is enticing.
However, new investors should remember that higher potential returns come with increased risks. Even top stocks may take several years to realize their true value.
Investors also need to think about the opportunity cost of holding these stocks over time. Recently, this has been evident with the Magnificent 7 stocks, which have significantly outperformed in the past couple of years.
Fortunately, there are options for sustained growth that don’t involve ETFs. Here are three technology stocks worth considering if you have $1,000 to invest in 2025.
NVIDIA: A Generous Performer in 2024
NVIDIA Corp. (NASDAQ: NVDA) has seen remarkable success, being the best-performing stock in the S&P 500 in 2023 and third-best in 2024.
But is it the right time to buy NVDA? A recent 10-for-1 stock split in June 2024 makes shares more accessible to regular investors. Now, you can purchase over 9 shares of NVDA stock for just $1,000.
Growth momentum will likely stem from the strong demand for NVIDIA’s graphic processing units (GPUs), essential for powering AI applications. The launch of their high-performance Blackwell GPU in 2024 has already led to a significant backlog of orders, ensuring robust revenue and profit growth.
As of January 23, NVDA’s stock has risen about 8.8% and recently surpassed its 50-day simple moving average, indicating potential bullish momentum, especially if earnings in February are strong.
Amazon: The 10-Bagger with Further Potential
Amazon.com Inc. (NASDAQ: AMZN) is one of the initial 10-bagger stocks, gaining immense value since its days as a modest online bookstore. Today, it stands as one of the world’s few trillion-dollar companies, remaining dominant in both e-commerce and cloud computing via Amazon Web Services (AWS).
Between 2022 and 2024, AMZN stock has provided total returns exceeding 62%. This is particularly impressive for a company of Amazon’s size, which often struggles to outpace more agile competitors. During this time, AWS has played a pivotal role in driving the company’s performance.
With a projected compound annual growth rate (CAGR) nearing 20% for the global e-commerce and cloud computing markets through 2030, Amazon is anticipated to capture a significant portion of this growth.
Spanning nearly three decades, Amazon has executed four stock splits, with the latest being a 20-for-1 split in 2022. This has placed the stock price at a level where investors can acquire several shares for $1,000.
Meta Platforms: Capitalizing on Opportunities
The potential ban of TikTok in the United States creates unique opportunities in the stock market. In this scenario, Meta Platforms Inc. (NASDAQ: META) stands poised to benefit significantly.
Even if TikTok remains operational, many content creators reliant on the platform could seek alternative venues for their work. As the parent company of Instagram, Meta is well-positioned against TikTok and also operates Threads on Facebook.
Morgan Stanley (NYSE: MS) estimates that Meta could reap between $2.46 billion and $3.38 billion in advertising revenue if TikTok were to be banned. Even without a ban, the shifting needs of content creators could lead to a bullish outlook for META stock, which has an appealing valuation based on forward earnings at approximately 27x.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
