Tech stocks have helped fuel the current bull market, which has now existed for just over two years. With the average bull market lasting around five and a half years, this group should have plenty of room to continue operating.
Let’s look at three tech stocks that seem like obvious buys in this bull market.
1.Nvidia
In a world where computing power seems to be constantly increasing, Nvidia (NVDA -2.09%) remains the best company to take advantage of this phenomenon. The company is the leading producer of graphics processing units (GPUs). Although originally designed to accelerate graphics rendering in video games and animation, the ability of GPUs to complete tasks much faster than central processing units (CPUs) has made these chips ideal for artificial intelligence (AI) training and inference.
Nvidia, on the other hand, was able to create a wide gap by being the first company to develop a software platform for programming GPUs for various tasks outside of graphics rendering. As such, it became the software platform on which developers learned to program GPUs. In the years since, the company has added AI-specific tools and libraries to further increase its advantage.
But it’s AI training’s exponential need for computing power that makes Nvidia a buy. The first version of ChatGPT was trained using 10,000 Nvidia GPUs, while newer AI models, such as Meta-platformThe Lama 4 from , will use 160,000. Meanwhile, there is already talk of a million GPU clusters in the near future.
There will be strong future demand for GPUs, which, along with their strong performance over the years, is why Nvidia remains a buy.
2. Sales force
If the next step in the AI rally is software, Sales force (RCMP -0.96%) is one of the best placed companies in this regard. With its customer relationship management (CRM) platform, the company has long established itself as a leader in front-office tasks. The company has since moved into other areas, such as automation, analytics and employee communications, through acquisitions of Mulesoft, Tableau and Slack.
The big opportunity for the company, however, lies in its autonomous AI agents, called Agentforce. An AI agent is a software program that uses AI to interact with its environment, collect data, and perform tasks to achieve goals. Launched in October, the company announced in early December call for results that it was seeing strong early adoption of the solution and had already closed 200 agreements with AI agents. Meanwhile, there were thousands of potential Agentforce deals in the pipeline.
Agentforce is a usage-based product that costs $2 per conversation. The potential for improvement is therefore enormous as it becomes more widely adopted. For its part, the company plans to deploy 1 billion AI agents by the end of fiscal 2026 (end of January 2026).
Meanwhile, the company recently released Agentforce 2.0, which includes a no-code platform to help users build their own tools as well as a library of pre-built agent skills. Agentforce 2.0 will also be able to execute actions outside of its CRM suite and in any application or workflow and will be integrated with Slack.
Image source: Getty Images.
With agentic AI — where AI agents act autonomously without constant human supervision to complete tasks — appearing to be the next big potential development in AI, Salesforce stock is an effective way to play on this theme.
3. SentinelOne
A technological laggard in 2024, cybersecurity company SentinelOne (S -1.71%)nevertheless, has a great opportunity in front of him. The company’s Singularity platform uses AI to predict, monitor and remediate threats and can be deployed in public, private or hybrid cloud environments.
He competes with Crowd strike and its Falcon platform. The outage of CrowdStrike earlier this year opened up an opportunity that SentinelOne is just beginning to take advantage of, with a major Fortune 50 and several government customers moving to its platform.
Meanwhile, the company is getting some good momentum selling its Purple AI solution, which helps analysts track down complex security threats using only natural language prompts. SentinelOne said it was the fastest growing solution in its history.
Despite its stock price lagging in 2024, the company has demonstrated strong revenue growth, including 28% revenue growth last quarter. Meanwhile, it trades at less than half the price of CrowdStrike over a term price-to-sales ratio (P/S) basis (7.0 times vs. 18.8 times) despite CrowdStrike’s similar revenue growth (28% for SentinelOne vs. 29% for CrowdStrike last quarter).
S PS ratio (1 year term) data by Y Charts. PS Ratio = price/sales ratio.
However, the biggest opportunity for the company and its stock will come in the second half of 2025, when the enterprise PC vendor Lenovo will begin shipping its computers with SentinelOne’s Singularity platform pre-installed. Lenovo is the world’s largest PC vendor, with a market share of approximately 25%, and has sold approximately 59 million PCs in 2023. This is a huge opportunity for a company the size of SentinelOne .
Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Geoffrey Seiler holds positions within SentinelOne. The Motley Fool ranks and recommends CrowdStrike, Meta Platforms, Nvidia and Salesforce. The Motley Fool has a disclosure policy.