2 Tech Stocks Wall Street Expects to Thrive in 2025

Wall Street analysts have identified two technology stocks with strong growth potential for the coming years. They believe that Monday.com and Advanced Micro Devices (AMD) could see substantial increases in their stock prices by 2025.

The analysts' average price targets suggest a 35% upside for Monday.com and a remarkable 52% upside for AMD.

Advanced Micro Devices

As companies increase their investment in artificial intelligence (AI), there is a growing demand for powerful hardware in data centers. This trend has directly benefited AMD, as the company's chips, particularly its graphics processing units (GPUs), are critical for training AI models. Currently, the average price target from analysts for AMD shares is $183, up from a recent price of $120.

In the third quarter, AMD's revenue from its data center business soared by 122% year-over-year, reaching $3.5 billion. Major partners like Microsoft and Meta Platforms play a significant role in this growth as they leverage AMD's technology to enhance their own services.

AMD's management estimates that the market for AI accelerators could hit a staggering $500 billion by 2028. In addition to its prominent position in the AI sector, AMD has also made strides in the CPU market, gaining share from traditional competitors like Intel. In Q3, AMD's client segment revenue increased by 29% compared to the previous year.

Analysts forecast that AMD's total revenue will grow by 27% in 2025, reaching $32 billion. The company is expected to experience a 54% increase in earnings due to the higher margins from its advanced AI chips, making its current price-to-earnings ratio of 24 seem attractive. Given this context, strong performance could bring AMD shares closer to analysts' price targets in the next year.

Monday.com

Monday.com has positioned itself as a leader in work management software. Its cloud-based platform is favored by businesses looking to streamline tasks, develop applications, and enhance team collaboration. The subscription-based model has driven significant revenue growth, jumping from $161 million in 2020 to $906 million recently.

Looking ahead to 2025, analysts predict that Monday.com could see its stock price rise by 35% to an average target of $319, up from around $235. Despite intense competition, Monday.com continues to grow revenue at more than 30% year-over-year and is on the verge of reaching $1 billion in annual sales.

The company's ability to maintain demand even after increasing prices speaks volumes about its competitive advantage. Additionally, Monday.com is launching new features like an AI-powered assistant, further solidifying its market position.

Profitability is also on the rise; Monday.com has swung from net losses in prior years to reporting nearly $22 million in net income over the last four quarters. The stock price has climbed 25% in the past year but still trades at a price-to-sales ratio of 13. For the stock to reach Wall Street's price target, either revenue growth needs to exceed expectations, or the price-to-sales multiple must increase.

Assuming Monday.com maintains its current valuation, its stock price should naturally rise in line with expected revenue growth of 26% in 2025, providing an excellent potential return on investment.

stocks, technology, growth