7 Best Tech Stocks to Buy for 2025

Introduction:

The technology sector continues to dominate global markets, with key stocks driving the industry to unprecedented highs in 2024. As the Technology Select Sector SPDR ETF (XLK) outperforms the S&P 500 over the past five years, investors look to tech for lucrative opportunities. Historically, periods of tech underperformance have proven to be excellent buying opportunities. Despite inflation concerns and high interest rates posing challenges, the sector’s growth outlook remains compelling. Here's a curated list of the 10 best tech stocks to buy now, based on CFRA analysts' insights.

Summary

1. Apple Inc. (AAPL)

2. Nvidia Corp. (NVDA)

3. Microsoft Corp. (MSFT)

4. Broadcom Inc. (AVGO)

5. Salesforce Inc. (CRM)

6. Adobe Inc. (ADBE)

7. ServiceNow Inc. (NOW)

1. Apple Inc. (AAPL)

• Upside Potential: 10.6%
  Apple is a global leader in consumer technology, producing iconic products like the iPhone, iPad, and Mac computers. Its growing services segment, which includes the App Store, Apple Music, and iCloud, provides recurring revenue streams and strong margins. With its massive global customer base, Apple is well-positioned to leverage on-device AI features and new product innovations. Additionally, the company’s robust capital return strategy and consistent free cash flow generation make it a reliable investment. CFRA has a price target of $260 for AAPL, which closed at $235 on Dec. 11.

2. Nvidia Corp. (NVDA)

• Upside Potential: 18.4%
  Nvidia excels in high-end graphics processing and AI chip development, making it a dominant force in both gaming and artificial intelligence. In 2024, the stock has soared 181%, reflecting investor confidence in its growth potential. Key growth drivers include AI factories, sovereign AI, and premium product launches that promise higher profitability. With robust demand for its products across data centers and cloud computing, Nvidia remains a top choice for long-term growth. CFRA’s price target for NVDA is $165, with the stock closing at $139.31 on Dec. 11.

3. Microsoft Corp. (MSFT)

• Upside Potential: 9.1%
  Microsoft continues to lead the software and cloud computing markets with its innovative offerings. Its Windows and Office products dominate the business world, while Azure cloud services are growing rapidly. The company’s commitment to generative AI is evident through its investment in OpenAI, integration of Copilot AI, and development of new search and infrastructure tools. Analysts expect Microsoft to unveil new AI-driven products quarterly, ensuring steady growth. With a strong balance sheet and diversified revenue streams, Microsoft is well-equipped for the future. CFRA has a strong buy rating and a $490 price target for MSFT, which closed at $448.99 on Dec. 11.

4. Broadcom Inc. (AVGO)

• Upside Potential: 20.1%
  Broadcom benefits from its diversified semiconductor business and exposure to AI infrastructure demand. The company’s application-specific integrated circuits (ASICs) and networking solutions are pivotal for AI advancements. Its acquisition of VMware, expected to bring substantial cost synergies, enhances Broadcom’s software revenue. The long-term Apple chip supply agreement and growing AI opportunities provide Broadcom with one of its best demand outlooks yet. CFRA’s price target for AVGO is $220, while the stock closed at $183.20 on Dec. 11.

5. Salesforce Inc. (CRM)

• Upside Potential: 17.7%
  Salesforce is a global leader in cloud-based customer relationship management (CRM) software. Despite transitioning from a high-growth to a mature company, Salesforce retains significant upselling and cross-selling opportunities within its large customer base. Its Agentforce AI platform enhances customer engagement and workflow automation. Furthermore, its historically attractive valuation, coupled with steady revenue growth, makes Salesforce a compelling investment. CFRA targets CRM at $418, with the stock closing at $354.85 on Dec. 11.

6. Adobe Inc. (ADBE)

• Upside Potential: 14.5%
  Adobe’s dominance in creative software, such as Photoshop and Illustrator, extends to its innovative AI tools like Firefly, Express, and Acrobat's AI Assistant. These new offerings position the company for revenue acceleration in the coming quarters. Adobe's large installed user base and partnerships provide additional growth levers. Despite recent stock weaknesses, analysts view this as an attractive buying opportunity. CFRA’s price target for ADBE is $630, with shares closing at $549.93 on Dec. 11.

7. ServiceNow Inc. (NOW)

• Upside Potential: 7.3%
  ServiceNow is an AI-driven leader in workplace automation, offering cloud-based applications that enhance organizational workflows. Its subscription model contributes to consistent revenue growth, while its Now Platform adds new AI-driven features to attract customers. As IT budgets expand in 2025, ServiceNow is well-positioned to capitalize on higher enterprise spending. CFRA targets NOW at $1,231, with shares closing at $1,147.18 on Dec. 11.
•  

FAQs

Q.1. Why invest in tech stocks in 2024?

A.1 Tech stocks remain a cornerstone for innovation and growth. Historical trends show long-term gains despite short-term volatility. With AI and cloud computing leading advancements, tech is a promising sector.

Q.2. Are these stocks suitable for long-term investment?

A.2 Yes, all the highlighted stocks have strong fundamentals and growth prospects, making them suitable for long-term portfolios.

Q.3. How do interest rates affect tech stocks?

A.3 Higher interest rates can pressure valuations by increasing borrowing costs. However, the innovation-driven nature of tech companies often offsets these headwinds.

Q.4. What is the biggest risk to tech investments in 2024?

A.4 Inflation uncertainty and macroeconomic conditions remain the primary risks. Proper diversification and careful stock selection can mitigate potential impacts.

Conclusion:

The tech sector's resilience and innovation continue to make it a compelling investment choice. The 7 stocks highlighted here reflect a mix of established giants and innovative leaders poised for growth. From Apple and Nvidia to ServiceNow and Accenture, these companies offer a variety of opportunities for investors to capitalize on emerging trends. As always, consult a financial advisor to align investments with your goals and risk tolerance.

Important Note: Please Read Before You Invest

We're just sharing some helpful tips, but remember, investing comes with risks. We can't promise that these tips will always work or that you'll make money. Everyone's financial situation is different, so it's smart to do your research or talk to a financial advisor before you invest. Using these tips, you agree that you're responsible for your investment decisions and results.