3 Leading Tech Stocks to Buy in 2025

While there has been some recent volatility in the sector, technology stocks are still one of the best places to invest long-term. Whether it’s DeepSeek introducing a vastly less expensive large language model (LLM) artificial intelligence (AI) interface that creates doubt about levels of spending on AI or it’s a war of tariffs between rival nations that could affect revenue levels, the factors causing price volatility in tech stocks right now are likely to be temporary. That creates a nice buying opportunity for select tech stocks with the potential to take advantage.

Let’s look at three leading tech stocks that are to buy in 2025.

1. Nvidia

When Chinese AI company DeepSeek claimed to have trained a world-class LLM for under $6 million and released it to the public last week, Nvidia (NVDA 2.44%) was the stock most affected. Many questions remain regarding DeepSeek’s product, including the true cost and whether DeepSeek improperly distilled material from OpenAI’s models. But the potential that a quality LLM could be developed on the cheap raised issues about whether there was really an overwhelming need for the most advanced semiconductor chipsets.

Thus far U.S. companies haven’t publicly backed down from their AI infrastructure spending plans. Microsoft (MSFT -0.26%), Nvidia’s largest customer, is still moving forward with a planned $80 billion in AI-focused data center capital expenditures (capex) in 2025, while Meta Platforms (META -0.59%) plans to spend between $60 billion and $65 billion this year.

When asked about Meta’s spending plans, Meta CEO Mark Zuckerberg said he believes that investing heavily in AI infrastructure will give it an advantage, and that while the company could learn that this isn’t the case, it’s way too early to determine that. Others, such as Microsoft CEO Satya Nadella, believe that any successes in lowering the costs of AI training will just lead to a lot more AI consumption.

As it is, Nvidia remains the AI infrastructure leader, as its graphics processing units (GPUs) are still the primary way to train LLMs for AI use. Until proven otherwise, there’s likely to be a lot of continued demand for its chips. The newest LLMs have used considerably more GPUs to be trained, quite often 10 times as many. If costs were rising by a factor of 10 per new model iteration but DeepSeek could reduce training costs by a factor of 10, that would largely be a wash. In turn, flattish training costs could lead to increases in the number of AI models being trained, which could also lead to more AI inference. In the end, that would be a positive for Nvidia.

The stock currently trades at an attractive valuation, with a forward price-to-earnings (P/E) ratio of 21 based on analysts’ 2025 estimates, and a forward price-to-earnings-to-growth (PEG) ratio of around 0.4. A PEG under 1 is considered undervalued.

2. Taiwan Semiconductor Manufacturing

Leading semiconductor manufacturer Taiwan Semiconductor Manufacturing (TSM -2.37%), or TSMC for short, is another tech-company bargain that’s gotten caught in the sell-off based on DeepSeek and tariffs. TSMC is the primary advanced chip manufacturer in the world. So as long as the data center and AI buildout continue, it remains well positioned.

TSMC has become an invaluable part of the semiconductor value chain, where its leading 3-nanometer and 5nm technologies are used to produce the world’s most advanced chips, including graphics processing units (GPUs) from Nvidia and Apple‘s flagship A18 chip, used in the iPhone 16 Pro. TSMC’s technological expertise and scale have given it tremendous pricing power, and it’s set to raise prices once again in 2025.

This is leading to both strong revenue growth and improving margins. In the fourth quarter, TSMC saw revenue climb 37% year over year to $26.9 billion, while gross margin improved by 600 basis points to 59%. As gross margins improve, this means more revenue filters down to the bottom line as profit. Increasing chip demand, rising prices, and expanding gross margins make a great combination for the company’s future.

TSMC is currently attractively priced with a forward P/E of 19 and a PEG of around 0.8.

3. Meta Platforms

Meta Platforms is one of the leading digital advertising companies in the world, through its portfolio of social media and messaging apps. Meanwhile, the company is investing heavily in AI models, both to help keep users on its platforms longer and to better connect advertisers with these users.

Thus far, the strategy has been working; Meta had a 21% year-over-year jump in Q4 ad revenue to $46.8 billion. It continues to add new users to its platforms and to profit more from each user. Last quarter, it grew its user base by 5% while average revenue per person (ARPP) climbed 16% to $14.25. Meta has shown to be much better than any other social media company at monetizing its user base.

It does this by keeping users engaged, as well as by better targeting them through its ad platform. Last quarter, its average price per ad jumped 14%, because ad demand increased as a result of ad performance. At the same time, it was able to serve 6% more ads across its platforms.

Meta is working to make Threads its next big social media platform. It already had 320 million monthly active users at the end of 2024, and has been growing the Threads user base by about 1 million users a day. The company also has big plans to turn its Llama LLM into a leading AI assistant, with the newest version set to have both agentic AI and multimodal capabilities.

Investors can get this leading AI and digital advertising company, with one of the best business models around, for a low forward P/E of just 24.