The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide, with the integration of AI and ML revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations around the globe are undergoing digital transformation to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and services.
With substantial growth potential, the technology sector has consistently outperformed other sectors. In 2024, the S&P 500 Information Technology Sector Index rose by approximately 37%, outpacing the broader S&P 500 Index by an impressive 11.5%. This performance has led to skyrocketing market capitalizations for tech sector companies, prompting caution regarding high valuations. Following the market downturn triggered by DeepSeek’s emergence, JJ Kinahan, CEO of IG North America, stated in an interview with BNN Bloomberg that while the market had reached incredibly high levels, macroeconomic concerns such as inflation and high interest rates persist. He also suggests that developments related to DeepSeek provided an excuse for profit-taking with a ‘reset’ occurring in tech stocks. Now the focus should shift to earnings and the actual benefits derived from those substantial investments.
On a positive note, in his report on December 13, Adam Benjamin, Sector Portfolio Manager at Fidelity Investments, highlighted that the sector benefited in 2024 from outstanding results in the semiconductor industry, reflecting major corporate investments in AI infrastructure. He remains optimistic for 2025, as evident from his positive outlook:
“The outlook for the sector in 2025 and beyond may be bright, as tech companies continue to innovate and digitization and automation become increasingly important in our lives. I believe the next phase of development could present opportunities for software firms, as the application layer begins to roll out generative AI agents across end markets, and as the full benefits of AI begin to be realized. Progress may not be linear, though, and investors must be mindful of stock valuations and the timing and potential impact of further technological advances in the field, as well as the broader macroeconomic environment.”
An engineer offering a demonstration of the ultra-low power FPGA technology.
Our Methodology
To identify the 10 best unstoppable stocks, we conducted extensive research to compile a list of fundamentally strong U.S.-listed companies that performed well in 2024 and are expected to continue their success in 2025. Our focus included technology companies with a market capitalization of $2 billion and above. We screened our coverage based on the following criteria: 1. Stock price should have outperformed the S&P 500 Index in 2024 (+22% rise in share price); 2. must have reported positive revenue growth over the last 5 years; 3. EPS growth for the next year is expected to be over 25%; 4. It should have a potential upside of at least 10%. Ultimately, the stocks were ranked in ascending order of their hedge fund sentiment as per Insider Monkey’s database of 900 hedge funds, as of Q3 2024.
Note: all pricing data is as of market close on January 28.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. SiTime Corp. (NASDAQ:SITM)
Upside Potential: 16%
Number of hedge funds: 18
SiTime Corp. (NASDAQ:SITM) is a fabless semiconductor company that delivers precision timing solutions to the global electronics industry. Utilizing micro-electro-mechanical systems (MEMS) technology, SiTime’s products ensure reliable and accurate timing for electronic devices. They are distinguished by their high performance, resilience, reliability, programmability, compact size, and low power consumption. These products are integrated into more than 300 applications across diverse markets, including communications, data centers, automotive, industrial, aerospace, mobile, IoT, and consumer sectors.
SiTime Corp. (NASDAQ:SITM) holds a commanding 90% market share in the MEMS timing devices market. The company’s innovative MEMS-based oscillators are gradually replacing traditional quartz oscillators, presenting significant market expansion opportunities. Over the past year, SiTime’s stock has risen by 64%, outperforming the S&P 500 Index by approximately 39%.
9. PAR Technology Corp. (NYSE:PAR)
Upside Potential: 24%
Number of hedge funds: 24
PAR Technology Corp. (NYSE:PAR) develops and markets products and software that help hospitality operators worldwide to better manage finances, materials, personnel, and the guest experience. Its product and service offerings include point-of-sale (PoS) systems, customer engagement and loyalty programs, digital ordering and delivery solutions, operational intelligence technologies, and payment processing services. Currently, over 100,000 restaurants utilize its software, and the company has deployed 500,000 terminals globally.
PAR Technology Corp. (NYSE:PAR) stands out by offering a diverse range of hardware products and a unified technology platform that provides integrated solutions and advanced data insights. The increasing use of technology in the hospitality and retail sectors is driving demand for the company’s products. Recently, PAR Technology acquired Delaget LLC, a leading provider of restaurant analytics and business intelligence solutions, for $132 million. Delaget boasts an impressive portfolio, servicing over 30,000 locations and more than 125 brands. Savneet Singh, the company’s CEO and President, remarked:
“The acquisition of Delaget marks another strategic milestone in PAR’s mission to build the industry’s most comprehensive food service platform. Delaget’s analytics capabilities perfectly complement our Operator Cloud solution, while offering immediate value to our customers through enhanced back-office capabilities, delivery operations, and data-driven insights. Our combination will help restaurant operators make better decisions, reduce costs, and drive operational excellence in real-time. Access to the Delaget product suite will accelerate development timeframes of the PAR Data Platform, a major initiative that unites data across a restaurant’s tech stack to provide unparalleled guest and operational insights.”