A handful of high-flying technology stocks led the stock market to new all-time highs in 2024. In fact, the Technology Select Sector SPDR ETF (ticker: XLK) has significantly outperformed the S&P 500 in the past five years.
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For more than a decade, brief periods of tech sector underperformance have consistently been long-term buying opportunities, and that trend seems likely to continue for the foreseeable future. However, inflation uncertainty and elevated interest rates remain headwinds for tech earnings in the near term, making stock selection critical. Here are 10 of the best tech stocks to buy today, according to CFRA analysts.
| Stock | Upside Potential* |
| Apple Inc. (AAPL) | 10.6% |
| Nvidia Corp. (NVDA) | 18.4% |
| Microsoft Corp. (MSFT) | 9.1% |
| Broadcom Inc. (AVGO) | 20.1% |
| Salesforce Inc. (CRM) | 17.7% |
| Adobe Inc. (ADBE) | 14.5% |
| ServiceNow Inc. (NOW) | 7.3% |
| Advanced Micro Devices Inc. (AMD) | 38.3% |
| Accenture PLC (ACN) | 16.5% |
| International Business Machines Corp. (IBM) | 8.2% |
*As of Dec. 11 close.
Apple Inc. (AAPL)
Apple produces the iPhone, iPad, Apple Watch, Mac computers and other personal computing devices. In addition, its services segment includes its App Store, Apple Music, iCloud and licensing businesses. Analyst Angelo Zino says Apple’s margin profile is improving, its addressable market is expanding and it has a massive global ecosystem of customers to monetize. In addition, Zino says Apple has significant opportunities to add on-device artificial intelligence features. Apple also has an aggressive capital return strategy, and its tremendous free cash flow generation is relatively stable. CFRA has a “buy” rating and $260 price target for AAPL stock, which closed at $235 on Dec. 11.
Nvidia Corp. (NVDA)
Nvidia designs and sells high-end graphics and video processing chips used for personal computers, workstations, and other advanced computing servers and AI engines. Not only has Nvidia been the best-performing stock on this list in 2024, its year-to-date gain of 181% makes it the third best-performer in the entire S&P 500. Zino says Nvidia has several key growth drivers that will support demand in 2025 and beyond, including sovereign AI, AI factories and new, higher-priced product launches. CFRA has a “buy” rating and $165 price target for NVDA stock, which closed at $139.31 on Dec. 11.
Microsoft Corp. (MSFT)
Microsoft is the world’s largest software company and is best known for Windows, Office and Azure cloud services. Zino says Microsoft has countless opportunities to capitalize on booming generative AI demand, including its investment in ChatGPT maker OpenAI, its Azure cloud services business, integration of its Copilot AI companion and additional AI search features. He says Microsoft has gone all-in on AI by investing heavily in infrastructure and services. He expects Microsoft will steadily roll out additional AI products and features on a quarterly basis in 2025. CFRA has a “strong buy” rating and $490 price target for MSFT stock, which closed at $448.99 on Dec. 11.
Broadcom Inc. (AVGO)
Broadcom is a diversified global analog semiconductor supplier. Zino says Broadcom’s application-specific integrated circuit (ASIC) business and its networking and switcher businesses will be major beneficiaries of the AI infrastructure investment boom. In addition, he says Broadcom’s acquisition of VMware is progressing ahead of schedule and will produce significant cost synergies. He says VMware generates highly recurring, high-margin subscription software revenue. Finally, Zino says Broadcom’s long-term Apple chip supply contract and its AI opportunities give Broadcom the best demand outlook it’s ever had heading into 2025. CFRA has a “buy” rating and $220 price target for AVGO stock, which closed at $183.20 on Dec. 11.
Salesforce Inc. (CRM)
Salesforce is the world’s largest provider of cloud-based customer relationship management software. Salesforce is no longer the high-growth stock it once was, but Zino says the company has opportunities for market share gains and profit growth in 2025 and beyond. In addition, Zino says Salesforce shares have a historically attractive valuation considering the company’s bullish outlook. He says the company’s Agentforce AI agent builder platform should continue to gain momentum throughout 2025, and Salesforce has significant upselling and cross-selling opportunities within its existing customer base. CFRA has a “strong buy” rating and $418 price target for CRM stock, which closed at $354.85 on Dec. 11.
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Adobe Inc. (ADBE)
Adobe produces creative content software and other applications used for marketing and e-commerce. Adobe shares are down significantly this year, but Zino says that weakness is a buying opportunity given the stock’s attractive valuation and AI monetization opportunities. He says new AI offerings such as Firefly, Express and AI Assistant in Acrobat and Reader will likely lead to an increase in revenue growth for Adobe in the coming quarters. Zino says Adobe will also benefit from its large installed user base, diverse portfolio of products and valuable industry partnerships. CFRA has a “buy” rating and $630 price target for ADBE stock, which closed at $549.93 on Dec. 11.
ServiceNow Inc. (NOW)
ServiceNow provides cloud-based applications used to manage and automate workplace processes and workflows. Analyst Janice Quek says ServiceNow is a market leader in AI workplace automation and is gaining market share with its AI applications. Quek says the Now platform is growing its subscription revenue as it adds more products, contributing to overall sales growth momentum. She says generative AI products will attract new customers and drive service upgrades from existing customers in 2025. Higher customer IT budgets will also be bullish for ServiceNow. CFRA has a “strong buy” rating and $1,231 price target for NOW stock, which closed at $1,147.18 on Dec. 11.
Advanced Micro Devices Inc. (AMD)
Shares of semiconductor stock Advanced Micro Devices are up a whopping 5,126% over the past decade, but Zino’s bullish outlook for central processing unit data center server demand suggests the stock may still have significant upside ahead. AMD has also taken strides to improve its balance sheet, reducing risk for investors. Zino projects expanding margins in 2025 as PC-related demand stabilizes and AMD launches new, higher-margin products. He says AMD has diversified exposure to AI opportunities, including graphics processing units, CPUs and ASICs. CFRA has a “buy” rating and $180 price target for AMD stock, which closed at $130.15 on Dec. 11.
Accenture PLC (ACN)
Accenture is a global information technology services firm that specializes in consulting and outsourcing. Analyst Brooks Idlet says Accenture’s strong balance sheet, large customer base, and diversified consulting and managed services business make the stock a quality defensive investment during periods of macroeconomic weakness. Idlet says Accenture has consistently demonstrated its ability to attract talent and maintain valuable partner relationships. Looking ahead, he says Accenture has a leadership position in generative AI and cloud migration, which has been reflected in the company’s strong bookings numbers. CFRA has a “strong buy” rating and $424 price target for ACN stock, which closed at $363.84 on Dec. 11.
International Business Machines Corp. (IBM)
IBM is a global technology company that provides enterprise software, infrastructure and services. Idlet says IBM is attractively valued given its broad exposure to key tech growth trends, including cloud migration and AI. He is bullish on IBM’s Granite generative AI models and its overall watsonx platform, which has use cases such as assisted software development and model governance and training. Idlet says software revenue growth will help IBM expand its earnings multiple over time, and the company’s consulting business will allow IBM to cross sell other products. CFRA has a “buy” rating and $249 price target for IBM stock, which closed at $230.12 on Dec. 11.
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10 Best Tech Stocks to Buy for 2025 originally appeared on usnews.com
Update 12/12/24: This story was previously published at an earlier date and has been updated with new information.
