We recently published a list of 15 most promising technology stocks to buy now. In this article, we will examine where Nvidia Corp. (Nasdaq: NVDA) applies to other most promising technological actions to buy now.
The global technology sector is in the process of strong growth in 2025, driven by the progress of artificial intelligence (AI), cloud computing and semiconductors. Despite macroeconomic uncertainties, technological companies have demonstrated resilience, taking advantage of innovation to maintain the expansion of income and profits. Analysts provide substantial growth in profits in the sector, reflecting solid fundamentals and continuous investments in processing technologies.
According to a December 2024 report by John Butters, vice-president and main analyst of the results in Fostset, the profits of the S&P 500 should increase by around 15% in 2025, the information technology sector (IT) playing a role crucial in this expansion. In particular, the eleven S&P 500 sectors are expected to see profits growth from one year to the next, including six – including – planned to reach two -digit increases. The report also emphasizes an interesting change that occurs outside the “Magnificese 7”, the group of technological companies in Mega-Capitaine which historically motivated market performance. While analysts plan to grow profits of 21% for the magnificent 7 in 2025, they also predict a significant improvement in profits for the 493 other S&P 500 companies, providing for a 13% increase. This represents a considerable leap in relation to the growth of profits of 4% expected for these same companies in 2024, reporting a broader participation of the market in 2025.
Although the magnificent 7 continue to dominate the market, the feeling of investors suggests an increasing evolution towards smaller and high growth technological companies. Gene Munster, Director Partner at Deepwater Asset Management, underlined in a recent CNBC interview which, although large capitalization technology remains fundamentally strong, small businesses in the “border technology” sector – of a typically lower than 500 value billions of dollars – are proven to outperform in the coming years. This change stems from the concerns that companies of billions of dollars could have limited potential for high percentage gains, which has prompted investors to explore smaller opportunities in AI, cloud infrastructure and manufacture of semiconductor equipment.
A report of the prospects of the Deloitte technological industry in 2025 strengthens the growth trajectory of the sector. Despite the economic winds, technological investments should accelerate, with an increase in expenditure on AI, cybersecurity and corporate software. Cybersecurity will be an essential objective as the digital attack surface is developing due to the rise of IoT, generating AI and the adoption of the cloud. The global cost of cybercrime is expected to reach $ 10.5 billion in 2025, highlighting the need for increased safety investments.
While the technology sector heads around 2025, robust profits should continue, supported by AI -oriented innovations and expanding digital transformation initiatives. Massive capital expenditure recently announced by major technological companies reflect confidence in the long -term potential of the sector. However, although MEGA-CAP technology remains a dominant force, the investor objective can increasingly evolve towards smaller and strong growth companies that are pioneering from new generation technologies.
To determine the 15 most promising technological actions, we started by analyzing all the technological companies listed in the United States with a market capitalization of at least $ 2 billion. To exclude unprofitable companies, we only considered companies that have declared a clear positive margin over the period of twelve months of the end. From this refined list, we have further reduced our selection to these actions with a potential of more than 10%. Finally, we have classified companies in increasing order according to the number of hedge funds holding issues in the respective company, the company attracting the most interest in hedge funds guaranteeing first place.
Note: All prices data are closing the market on February 17.
At Insider Monkey, we are obsessed with stocks in which the hedge funds accumulate. The reason is simple: our research has shown that we can surpass the market by imitating the main choices of stock of the best hedge funds. The strategy of our quarterly newsletter selects 14 shares with small capitalization and high capitalization each quarter and has rendered 275% since May 2014, beating its reference with 150 percentage points (See more details here).
NVIDIA Corp. (NVDA) Is the most promising technology stock to buy now?
A close -up of a high -end colorful graphics card being connected to a game computer.
Number of hedge funds: 193
Upward potential: 26%
NVIDIA Corp. (Nasdaq: NVDA) designs and manufactures graphic processing units (GPU), system on a chip (SOC) and IA hardware and software. Over the years, the company has expanded its offers from GPUs of games to include data center solutions, IA IT and in -depth learning technologies. The GPUs of the company are widely used in data centers for high performance IT, AI training and inference, making it an essential player in the ecosystem of the data center. Its products are essential to feed advanced applications in AI, automatic learning and data analysis. NVIDIA Corp. (Nasdaq: NVDA) has the best margin profile among the companies on this list.
NVIDIA Corp. (NASDAQ: NVDA) went from a PC game GPU company to a dominant player in accelerated computer space, offering a complete computer infrastructure with data -scale solutions. The force of the company is obvious in its market share of more than 80% in the GPUs. Nvidia has greatly benefited from the growing adoption of AI and automatic learning technologies, which stimulates high demand for its chips. The income, profitability and market capitalization of the company have increased since the introduction of Genai models as Chatgpt.
Despite recent concerns concerning Deepseek, analysts continue to consider action as a purchase of consensus, predicting an advantage of around 24%. On January 28, Tigress Financial Partners improved the Buy’s action note to Strong Buy and increased the price of courses from $ 170 to $ 220. According to Tigress Financial analysts, total capital investments in the development of AI-A-AI and the data center should exceed $ 330 billion in 2025, compared to just under 250 billion dollars in 2024. Also plan that investments could potentially reach $ 400 billion by 2026. Given its robust positioning, Nvidia Corp. (NASDAQ: NVDA) is about to be an important beneficiary of these investments and will continue to influence the future of AI and data center technology.
Overall, NVDA 1st On our list of the most promising technological actions to buy now. While we recognize the potential of the NVDA to grow, our conviction lies in the conviction that AI actions are more promising to provide higher yields and do it within a shorter period. If you are looking for a more promising AI actions than NVDA but which is negotiated within 5 times its income, consult our report on the Stock ai the cheapest.
