A Promising Stock Market Ahead: Top Tech Picks for 2025
The stock market enjoyed a fruitful 2024, driven by the technology sector, as the growing theme of artificial intelligence (AI) captured the interest of investors looking for significant returns. Now, it appears the bull rally has room to extend.
Although the market may pause for the next few months, technology stocks are likely to thrive through trends like predictive AI, cloud computing, automation, digitization, cybersecurity, and semiconductors in 2025. Investors can capitalize on these developments by considering investments in high-quality tech stocks. Below, we highlight two companies worth examining.
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Nvidia: Leading the Charge in AI Computing
Nvidia (NASDAQ: NVDA) stands out due to its product lineup and impressive financials.
With a commanding 90% market share in discrete graphics processing units (GPUs), Nvidia continues to set the pace. Demand for its Hopper architecture GPUs remains strong, but upcoming Blackwell architecture GPUs are anticipated to exceed supply as hyperscalers seek upgrades.
CEO Jensen Huang predicts that at least $1 trillion in existing data centers will require upgrades to accelerated computing by 2027, presenting a significant growth opportunity for Nvidia. Additionally, AI services, also known as AI factories, are likely to expand rapidly.
Nvidia’s dominant position in AI-optimized GPU technology is bolstered by its unique Compute Unified Device Architecture (CUDA), which allows for parallel programming of GPUs. This software is actively used by nearly 4 million developers across 3,000 applications, creating a strong competitive advantage.
At CES 2025, Nvidia announced exciting products, including the NVIDIA Project DIGITS—a personal AI supercomputer built on the new NVIDIA GB10 Grace Blackwell superchip, priced at $3,000. This device enables developers to manage large language models independently.
Furthermore, Nvidia is innovating in the physical AI arena. The new Cosmos World foundation model platform promotes the efficient development and deployment of solutions like autonomous vehicles and robots. Given that creating physical AI models can be complex and expensive, this platform offers significant advantages.
Financially, Nvidia remains robust, with Wall Street analysts forecasting revenues of around $38 billion for the fourth quarter of fiscal 2025 (ending January 31, 2025), a 72.1% year-over-year increase. Earnings per share (EPS) are expected to reach $0.85, marking a 63% rise compared to the previous year.
Since early 2023, Nvidia’s share price has skyrocketed by 830%, reflecting the market’s recognition of its technological expertise and expansive growth potential.
Meta Platforms: Enhancing Digital Ads Through AI
Meta Platforms (NASDAQ: META) emerges as a strong tech candidate for 2025 for several reasons.
The company’s digital advertising business remains robust, with third-quarter revenues reaching $40.6 billion—a 19% increase year-over-year. The Family of Apps, including Facebook, Instagram, Messenger, and WhatsApp, generated $21.8 billion in operating income, maintaining an impressive operating margin of 54%.
During this period, 3.2 billion users—almost 40% of the global population—engaged daily with Meta’s apps. The company employs advanced AI technologies to enhance user experience through personalized recommendations, leading to increased engagement and more valuable ad placements.
Additionally, Meta is making significant advancements in AI by developing large concept models (LCMs) that outperform traditional large language models (LLMs). This innovative approach allows for more efficient reasoning and planning, reducing computational demands.
With $70.9 billion in cash at the end of the third quarter, Meta plans to invest heavily in AI development. Currently, the company is training its Llama 4 models on over 100,000 of Nvidia’s H100 chips. The open-source nature of Llama models enhances their efficiency—an advantage Meta aims to leverage in the future.
Moreover, the company is exploring new monetization opportunities through initiatives like Threads and Ray-Ban Meta smart glasses, along with WhatsApp Business.
Despite challenges, including losses from Reality Labs and rising capital expenditures, Meta’s business model looks appealing, as it trades at a forward price-to-earnings (P/E) ratio of 23.9, making it a worthy investment option as we head into 2025.
A Second Chance at Lucrative Investments
Have you ever felt you missed your chance to invest in high-performing stocks? This could be a prime opportunity for you.
Our expert analysts have identified “Double Down” stock recommendations—companies poised for growth. If you’re concerned you missed your window, now is the time to act before the opportunity passes. Consider the following returns:
- Nvidia: If you invested $1,000 when we first recommended it in 2009, you’d have $346,349!*
- Apple: If you invested $1,000 when we recommended it in 2008, you’d have $43,229!*
- Netflix: If you invested $1,000 when recommended in 2004, you’d have $454,283!*
We currently have “Double Down” alerts for three exceptional companies, and this may be your last chance to invest.
See 3 “Double Down” stocks »
*Stock Advisor returns as of January 13, 2025
Randi Zuckerberg, a former Facebook market development director and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool follows a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
