Discover the 5 Best Tech Stocks Poised to Thrive in 2025: Your Safe Haven Investment Strategy

Wall Street has seen an incredible bull run over the past two years, largely fueled by the rise of artificial intelligence (AI), particularly generative AI. Companies that have integrated AI into their products have experienced significant growth during this time.

The tech sector, often viewed as overpriced, continues to thrive due to its unmatched innovation. Few sectors grow and change as rapidly as technology, with generative AI leading the charge.

For those looking to invest, focusing on AI-driven stocks with a solid Zacks Rank for at least a year can be wise. Even if these stocks seem highly valued now, they are expected to remain strong through 2025. Buying during any dips of 5-10% could be a smart move.

Here are five stocks to watch: NVIDIA Corp., Broadcom Inc., QUALCOMM Inc., Innodata Inc., and Marvell Technology Inc..

AI Adoption Is Skyrocketing

The stock market surge that began in early 2023 has been heavily influenced by the tech sector’s growth, driven mainly by the widespread use of generative AI.

According to Bloomberg Intelligence, spending on generative AI is projected to skyrocket from $67 billion in 2023 to $1.3 trillion by 2032. A recent UBS report suggests that major U.S. tech companies will invest around $267 billion in AI by 2025, a staggering 33.5% increase from the previous year.

In January, Taiwan Semiconductor Manufacturing Company (TSMC) reported strong earnings and forecasts, reflecting high demand for AI chipsets.

Growth of AI-Driven Data Centers

AI-powered data centers are becoming essential. For instance, Microsoft plans to invest $80 billion into AI-enabled data centers by 2025 to enhance AI and cloud applications.

The demand for electricity in data centers is so great that companies like Microsoft and Google are partnering with nuclear energy producers to meet their needs.

Research by Rystad Energy predicts that the growth of both traditional and AI data centers will boost U.S. electricity demand by 177 TWh from 2023 to 2030.

5 AI-Centric Stocks to Consider for 2025

These five AI-focused companies have strong potential for growth in 2025 and have seen positive earnings revisions recently. Each currently holds a Zacks Rank of 1 (Strong Buy) or 2 (Buy).

Take a look at this year’s stock performance of our five picks:

Image Source: Zacks Investment Research

NVIDIA Corp.

With a Zacks Rank of 2, NVIDIA leads the way in AI chip development. At the Consumer Electronics Show 2025, the company showcased its powerful GeForce RTX 50 Series GPUs, which significantly enhance AI performance for gaming and creative projects.

NVIDIA aims for a $1 trillion market opportunity driven by growing AI needs. They expect to deliver more of their advanced Blackwell chips in the upcoming fiscal year.

High Short-Term Potential for NVIDIA Stock

NVIDIA is projected to see revenue growth of 48.7% and earnings growth of 43.1% for the next year. Its stock price is expected to rise significantly, with brokerage targets ranging from $135 to $220.

Broadcom Inc.

Also with a Zacks Rank of 2, Broadcom has benefited from increased demand for its AI-focused chips and networking solutions. The company experienced a fourfold increase in revenue from AI connectivity.

Its recent acquisition of VMware has added to its software solutions, enhancing partnerships with leaders like Alphabet and Meta.

Positive Short-Term Outlook for Broadcom Shares

Broadcom projects a revenue increase of 18.3% with earnings rising by 29.4%. Analysts expect a modest price increase based on current price targets.

QUALCOMM Inc.

With another Zacks Rank of 2, QUALCOMM is working with Google on generative AI solutions. They recently launched cutting-edge automotive platforms, driving growth in their automotive sector.

Their Cloud AI 100 chip offers impressive performance, supporting various generative models and boosting mobile technology.

Strong Short-Term Potential for QUALCOMM Stock

QUALCOMM expects revenue to grow by 8.3% and earnings by 9%. Analysts have recently increased their earnings estimates for the current year.

Innodata Inc.

Ranked #1, Innodata specializes in data engineering. Their services support tech companies in developing generative AI models, focusing on data preparation and AI algorithm training.

Innodata’s growth relies on ongoing collaboration with major tech firms.

Promising Short-Term Potential for Innodata Shares

Innodata anticipates robust growth, particularly in revenue. Recent improvements in earnings estimates suggest positive momentum for their stock.

Marvell Technology Inc.

With a Zacks Rank of 1, Marvell is enjoying significant demand in the data center market, showing impressive year-over-year revenue growth attributed to AI-driven products.

Marvell is well-positioned in the solid-state drive market, with expectations for continued growth due to increasing data volumes.

Strong Short-Term Price Outlook for Marvell Stock

Marvell forecasts substantial revenue and earnings growth for the next year, with analysts optimistic about the stock’s potential upside.