3 Tech Stocks to Boost Your Portfolio in 2025 and Beyond

The technology sector had an exhilarating year in 2024, and it shows no signs of slowing down. With strong fundamentals and exciting growth opportunities in sight, these three tech stocks are set to enhance your investment portfolio in 2025 and beyond.

In 2024, technology emerged as a leading sector on Wall Street. The rapid expansion of emerging fields such as artificial intelligence (AI) triggered a significant rally, marking this year as one of the most successful for technology stocks. As we look ahead to 2025, the momentum is expected to persist.

After extensive research, analysts have spotlighted Broadcom (AVGO), Qualcomm (QCOM), and Meta Platforms (META) as potential winners in the coming year. Each of these companies has shown a remarkable track record of delivering solid investment returns, and there's good reason to believe they will continue this trend.

Broadcom: Strong Performance and Future Growth

Justin Pope (Broadcom): Broadcom is gaining attention as we enter 2025, having surged nearly 95% since the start of the year. The semiconductor and enterprise software giant recently concluded its fiscal year 2024 with impressive revenue growth, setting the stage for future gains.

In fiscal year 2024, Broadcom reported revenues of $51.5 billion, representing a 44% increase from 2023. Originally rooted in the semiconductor industry, Broadcom has diversified into enterprise software, including security and infrastructure solutions. Notably, the company acquired VMware for $69 billion late last year, a move that has propelled its software revenue to grow by an astounding 181% in 2024. As of now, the revenue distribution is approximately 60% from semiconductors and 40% from software.

Although semiconductor revenue exceeded $30 billion, it experienced only a 7% growth year over year. However, the AI sector has emerged as a promising growth area. Earlier this year, Broadcom partnered with prominent AI developer OpenAI and is reportedly developing a dedicated AI chip for Apple's data center servers.

With AI revenue skyrocketing by 220% in 2024 to $12.1 billion, Broadcom is positioning itself well to capitalize on burgeoning AI opportunities, similar to the explosive growth seen by companies like Nvidia. Currently, Broadcom's stock is trading at 29 times the earnings estimates for 2025, making it a worthwhile investment at a time when analysts predict a long-term earnings growth rate of around 20%.

Broadcom celebrated a triumphant 2024, and its strong financial performance coupled with emerging AI prospects could continue to benefit investors in the years ahead.

Qualcomm: Navigating Challenges with Diversification

Will Healy (Qualcomm): On the surface, Qualcomm may not seem like a top-tier stock. The semiconductor giant has faced headwinds, especially after its 5G-driven growth began to stabilize. Further complicating matters is the news that Apple plans to release a competitive smartphone chipset in 2027, which may jeopardize Qualcomm's lucrative partnership with the technology giant.

The potential loss of Apple's business, which accounts for 64% of Qualcomm's revenue from the handset segment, poses a significant risk. However, Qualcomm has laid the groundwork to mitigate this risk through diversification into the Internet of Things (IoT) and the automotive industry, with its automotive sector seeing impressive growth—55% in fiscal 2024.

Add to this Qualcomm's recent release of high-performance PC chips, which reportedly outperform Apple's M2 chip in certain aspects. Moreover, if the company proceeds with rumored plans to acquire part or all of Intel, it could significantly bolster its presence in the semiconductor space.

Despite the uncertainty surrounding its future with Apple, Qualcomm's stock has appreciated by 20% over the past year, even after a notable decline from its mid-year peak. This drop has resulted in a price-to-earnings (P/E) ratio of 18, well below that of its peers in the semiconductor industry.

While Qualcomm faces challenges, its focus on growing in automotive and other sectors presents a buying opportunity for investors, especially given its current low valuation.

Meta Platforms: A Consistent Performer

Jake Lerch (Meta Platforms): Meta has been a standout performer in the market for years. Since going public in 2012, the company has achieved a compound annual growth rate (CAGR) of 24.8%—almost double that of the S&P 500, which stood at 15.2% during the same timeframe. Year-to-date, Meta stock is up 75%, significantly outperforming the S&P 500's 28% increase.

Meta's strong historical performance is not the only reason it looks attractive as we approach 2025. The company's impressive ability to generate cash is also noteworthy.

In the past year, Meta generated $156 billion in revenue, making it the 22nd largest U.S. company by revenue. More impressively, this cash powerhouse produced over $52 billion in free cash flow.

This high-margin business model enables Meta to return value to shareholders in various ways, including share buybacks, debt reduction, strategic acquisitions, and even dividends. In February, Meta revealed a $50 billion share buyback plan and declared its first-ever quarterly dividend.

For long-term investors seeking a market-beating stock, Meta deserves serious consideration.

stocks, growth, investing