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3 Leading Tech Stocks To Buy In 2025 The Motley Fool

Bonisiwe Shabane
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3 leading tech stocks to buy in 2025 the motley fool

With these top tech stocks trading off their highs, now is a good time to buy. Tech stocks have been helping to lead the market higher for much of the past two years, but many have taken a breather in recent weeks. That opens up an opportunity to grab some tech leaders trading off their highs. Let's examine three leading tech stocks to consider buying before the end of the year. One of the companies best positioned for the ongoing artificial intelligence (AI) infrastructure boom is Taiwan Semiconductor Manufacturing (TSM +0.69%). While competition has increased in the AI chip race, with more companies turning to ASICs to run some of their AI workloads, TSMC remains in a prime position because it is the company that...

Manufacturing advanced semiconductors is not easy, and TSMC has proven to be the only company that can consistently manufacture chips at smaller node sizes (the number of transistors that fit on a chip) with... This has made it a key cog in the semiconductor value chain, leading to strong pricing power. It also gives it solid visibility, with the company projecting that AI chip demand will increase by a more-than-40% compound annual growth rate (CAGR) over the next few years. Taiwan Semiconductor's foundry leadership makes it a winner in almost all AI chip scenarios. International Business Machines is a steady dividend stock with AI and quantum computing exposure. ASML Holding is heating up as market sentiment improves.

Wall Street is seldom boring, and 2025 -- so far -- has been an exciting year for bullish investors. The U.S. stock market's three major indexes are all up year to date, led by the Nasdaq Composite's 18% gains since January. Yes, the technology space has dominated the story this year, with artificial intelligence (AI) at the forefront. The artificial intelligence (AI) revolution is no longer on the horizon; it’s happening now. From AI-powered search engines to cloud infrastructure, artificial intelligence is driving transformation across virtually every major industry.

Investors looking to tap into this explosive growth are turning to trusted resources like the Motley Fool’s Stock Advisor service. Keep in mind that Motley Fool is not a brokerage and is not regulated by the SEC. However, Motley Fool stock picks do tend to produce monster returns. Known for its long-term investment philosophy and market-beating recommendations, Stock Advisor has consistently identified emerging trends and standout companies. As the AI boom accelerates, the Motley Fool has spotlighted several top AI stocks that they believe are poised to deliver substantial returns. These companies are not only leading in AI innovation but also show the kind of earnings growth, market influence, and product strength that long-term investors seek.

Here are five of the Motley Fool’s top AI stock picks for 2025 and beyond. AI is transforming how companies operate, offering smarter decision-making, automation, and cost-saving efficiencies. For investors, this shift presents opportunities to back companies that are shaping the future of industries like cybersecurity, e-commerce, advertising, cloud computing, and more. Buying tech leaders heading into 2026 could be a smart move. Technology stocks continue to lead the market higher, and some of the best investments moving forward remain in technology leaders. Let's look at three leading tech stocks to buy now.

When you think of a market leader, the first name that should come to mind is Nvidia (NVDA +1.06%). The company's graphics processing units (GPUs) have become the backbone of the artificial intelligence (AI) revolution, and its CUDA software platform has created a deep competitive moat. Most early AI development was built using CUDA, and rewriting that code to work on another platform would be both expensive and time-consuming. That's why Nvidia still controls well over 90% of the GPU market. Its numbers show just how massive the AI wave has become. Nvidia generated $40 billion in data center revenue last quarter, despite not being able to sell a single chip in China.

Meanwhile, its AI infrastructure is about much more than chips today. The company now provides complete end-to-end solutions it calls AI factories, that combine chips (such as GPUs and CPUs), software (including CUDA and model-building frameworks like NeMo), and networking (such as NVLink, InfiniBand, and... With AI infrastructure spending expected to surge to as much as $4 trillion in the next few years, Nvidia remains in the driver's seat. No other company is as deeply embedded in the AI ecosystem, and it should continue to be one of the biggest winners from AI infrastructure spending. After plummeting during the stock market sell-off in April, the tech sector has bounced back. The tech-heavy Nasdaq Composite is now back in a bull market and ended June by reaching a new record high.

Are you looking for quality tech companies to add to your portfolio? Here are three leaders in the industry that should be long-term winners. You could make a strong argument that no company has benefited from the growth of artificial intelligence (AI) like Nvidia (NVDA +1.06%). Many of the biggest tech companies rely on Nvidia's graphics processing units (GPUs) for AI and machine-learning tasks. While Nvidia isn't the only GPU company, it's widely considered to design the most powerful ones. Nvidia has been on an incredible run since the launch of OpenAI's ChatGPT on Nov.

22, 2022. Revenue has increased by 628% from that point until its most recent quarterly earnings, when it reported revenue of $44.1 billion. NVDA Revenue (Quarterly) data by YCharts. Investors need to distinguish the genuine players from pretenders before investing in AI stocks and not get burned. American tech titans are spending billions of dollars to win the artificial intelligence (AI) race. However, investors must know how to distinguish between the genuine players and companies riding the AI hype cycle or just talking about it.

The TSX doesn’t have many pure-play AI giants like in the United States. However, there are outstanding investment choices that are legitimate integrators, enablers, and adopters of AI. Shopify (TSX:SHOP), Canada’s tech superstar, is both an AI adopter and integrator. This $292.5 billion e-commerce champion uses Generative AI to automate product descriptions, code generation, and marketing collateral for its huge and “sticky” merchant base. It is an adopter because AI and machine learning (ML) run the platform’s core business functions. As an integrator, Shopify build AI tools and embeds AI directly into its platform so merchants would have advanced capabilities.

Written by Jake Lerch, Justin Pope, Will Healy for The Motley Fool-> The leaves are falling, and the weather is getting cooler. You know what that means: It's time to start thinking about next year. We're running out of months in 2024, and investors are increasingly focused on what next year will bring and which stocks to buy now. With that in mind, let's turn our attention to three tech stocks that our Motley Fool contributors can't stop thinking about: Meta Platforms (NASDAQ: META), Shift4 (NYSE: FOUR), and Microsoft (NASDAQ: MSFT). Jake Lerch (Meta Platforms): My choice is Meta Platforms.

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