Earnings growth plays a vital role in global markets and equity investments, directly influencing stock prices and overall market performance. Companies with steady earnings growth are often considered more stable and reliable, attracting investor confidence and strengthening market sentiment. According to FactSet, the S&P 500 is expected to report a 9.5% earnings growth for 2024, surpassing the 10-year average annual growth rate.
Looking ahead, 2025 is projected to outperform 2024 in terms of earnings expansion. In a January 14, 2025 interview on Bloomberg’s ‘Open Interest’, Racquel Oden, HSBC’s U.S. Head of International Wealth and Private Banking, forecasted a 14.8% rise in corporate earnings for the year. She expressed optimism about broader market gains, particularly among the “forgotten 493” in the S&P 500—stocks beyond the high-performing “Magnificent 7.” Oden highlighted that technological advancements will enhance productivity, ultimately driving profitability and economic growth.
Similarly, in another Bloomberg interview in early January, Stephanie Guild, Head of Investment Strategy at Robinhood, discussed the challenges posed by elevated yields on valuations. She emphasized that equities are primarily influenced by three factors: market sentiment, valuation, and earnings growth. While high yields create hurdles, the key question remains whether corporate earnings can outpace the pressure from persistent interest rates. She also pointed out that the direction of earnings growth will largely depend on policies introduced by the new administration. In the short term, interest rates will steer market movements, but over the long run, earnings growth will be the main driver. Guild also highlighted mid-cap stocks as an attractive investment due to their favorable valuations.
Further reinforcing this outlook, FactSet’s February 14 report revealed that eight sectors have reported year-over-year revenue growth for Q4, with the IT sector leading the gains. Conversely, three sectors, led by Industrials and Materials, have shown a decline in revenue. This trend suggests a solid close to 2024 earnings. For 2025, FactSet analysts estimate a 12.7% year-over-year earnings growth.
With this promising backdrop, let’s explore the 15 tech stocks expected to achieve the strongest earnings growth in 2025.
A close-up of an investor pointing to a chart featured on a projector, conveying a message of growth.
Our Methodology
To determine the 15 technology stocks with the best earnings growth in 2025, we began by analyzing all U.S.-listed tech companies with a market capitalization of at least $2 billion. To exclude unprofitable companies, we considered only companies that reported a positive net profit margin over the trailing twelve months period. From this refined list, we further narrowed our selection to those expected to achieve greater than 25% EPS growth this year. Regarding next financial year (FY), for firms with more than six months remaining in their fiscal year, we used FY 2025 earnings estimates, while for those with six months or less left, we relied on FY 2026 estimates. Additionally, we considered only stocks with a projected upside of more than 10%. Finally, we ranked the companies in ascending order based on their expected earnings growth for next financial year (FY). We also included data on hedge fund holdings in these companies as of Q4 2024 to provide further insight into investor interest.
Note: All pricing data is as of market close on February 21.
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15 Tech Stocks with Best Earnings Growth in 2025
15. Western Digital Corp. (NASDAQ:WDC)
Expected EPS Growth Next FY: 25%
Number of Hedge Fund Holders: 85
Western Digital Corp. (NASDAQ:WDC) is a leading developer and manufacturer of data storage devices and solutions. The company’s product lineup encompasses hard disk drives (HDDs), solid-state drives (SSDs), and external storage systems designed for both consumer and enterprise markets. Western Digital’s storage solutions are utilized in a variety of applications, including personal computing, data centers, and cloud storage services, addressing the growing global need for reliable and high-capacity data storage.
Western Digital Corp. (NASDAQ:WDC) anticipates a 23% compound annual growth rate (CAGR) in installed cloud storage from 2024 to 2028, reaching 19.2 zettabytes, as outlined at its recently held Investor Day. Buoyed by the factors outlined in the event, an analyst at Cantor Fitzgerald reiterated his Overweight rating on the shares as he believes the company’s NAND business spin-off could unlock potential value which is not factored in its current valuation. With the separation now complete, the spun-off NAND business, SanDisk Corp. (NASDAQ:SNDKV), has emerged as an independent publicly traded entity.
14. Coherent Corp. (NYSE:COHR)
Expected EPS Growth Next FY: 28%
Number of Hedge Fund Holders: 71
Coherent Corp. (NYSE:COHR) is a developer and manufacturer of engineered materials, networking products, optoelectronic components, and optical and laser systems for the industrial, communications, electronics, and instrumentation markets. The company holds a strong position in the optical communications market, particularly with its innovative solutions for data centers, such as datacom optical transceivers.
On February 5, Coherent Corp. (NYSE:COHR) reported a 27% YoY (+6% QoQ) surge in its Q2 2025 (FY ending June) revenue of $1.43 billion driven by strong growth in AI-related datacom transceivers, telecom revenue, and growth across multiple key industrial end markets. It also witnessed robust improvement in profitability as gross margin expanded by 363 basis points to 38.2% YoY which led to more than tripling of the EPS to $0.95.
The results were highly positive as analysts became more positive on the company and still expect an average upside of around 45% from current levels. After the results, JPMorgan raised its price target from $110 to $120 while maintaining its Overweight rating. The analyst cited Datacom momentum, Telecom recovery, and strong margin execution as key drivers. Other analysts followed suit as Raymond James, Bank of America, B. Riley and Northland all raised their price targets.
13. Extreme Networks Inc. (NASDAQ:EXTR)
Expected EPS Growth Next FY: 28%
Number of Hedge Fund Holders: 30
Extreme Networks Inc. (NASDAQ:EXTR) delivers cloud-driven networking solutions that provide high-performance connectivity and network management for enterprises, service providers, and public sector organizations. The company also produces network switches, routers, and wireless access points, which are engineered to offer high-speed connectivity, network resilience, and scalability, serving organizations with both on-premises and cloud-based infrastructure.
Extreme Networks Inc. (NASDAQ:EXTR) reported good Q2 2025 results (FY ending June) on January 29. While revenue for the quarter grew 4% sequentially (-5.7% YoY) to $279.4 million, adjusted EPS stood at $0.21. Management noted that the company is witnessing a promising recovery with larger customers, which is creating meaningful share gains across a variety of verticals, including healthcare, manufacturing and Intelligent Reflecting Surfaces (IRS). They also expect subscription and support revenue to grow sequentially in the second half of the year. The company’s networking and infrastructure solutions are expected to see sustained demand due to growth in cloud computing, data centers, and enterprise network upgrades. Extreme Networks Inc. (NASDAQ:EXTR) is expanding globally, with a strong focus on the Asia-Pacific and European markets, where interest in networking and cloud technologies is rising.
After the results, Rosenblatt Securities analyst reiterated his Buy rating with a price target of $22, indicating a 40% upside. The consensus price target currently stands at $21 with a 38% potential upside.
12. Seagate Technology Holdings Plc. (NASDAQ:STX)
Expected EPS Growth Next FY: 32%
Number of Hedge Fund Holders: 52
Seagate Technology Holdings Plc (NASDAQ:STX) is a prominent provider of data storage solutions, specializing in the design, manufacturing, and distribution of hard disk drives (HDDs) and solid-state drives (SSDs). Their products serve a wide array of applications, ranging from personal storage and computing to enterprise data centers and cloud storage infrastructures.
With a consensus upside of 21.5%, analysts still see good risk-reward in Seagate Technology Holdings Plc (NASDAQ:STX). This was visible by an Evercore ISI analyst’s reiteration of his Buy rating with a price target of $135 (34% upside) on February 10. The rapid expansion of data generation—driven by cloud computing, AI, big data analytics, and edge computing—continues to boost demand for Seagate Technology Holdings Plc. (NASDAQ:STX) and its high-capacity storage solutions. To further advance its heat-assisted magnetic recording (HAMR) technology and increase storage densities, Seagate announced the acquisition of Intevac Inc. (NASDAQ:IVAC) on February 13 in a $119 million all-cash deal. Intevac’s 200 Lean platform, a key player in HDD deposition equipment, is expected to strengthen Seagate’s HAMR business. A TD Cowen analyst maintained a Buy rating on Seagate as of February 14, keeping the price target at $135, citing improved supply chain capabilities and readiness for HAMR expansion.
11. AvidXchange Holdings Inc. (NASDAQ:AVDX)
Expected EPS Growth Next FY: 36%
Number of Hedge Fund Holders: 34
AvidXchange Holdings Inc. (NASDAQ:AVDX) is a provider of accounts payable (AP) automation software and payment solutions tailored for middle-market businesses and their suppliers. The company’s intuitive platform is designed to simplify the complex and time-consuming tasks associated with AP and payment management.
During its Q3 2024 results announcement in November 2024, AvidXchange Holdings Inc. (NASDAQ:AVDX) forecasted its FY 2024 EPS to be in the range of $0.24-$0.25, signifying a fourfold growth from FY 2023. Analysts expect this growth momentum to continue, with an estimated EPS growth of around 36% for the following year. This growth is well-supported by the company’s expanding customer base across various industries and the increasing demand for digital transformation in finance. AvidXchange Holdings Inc. (NASDAQ:AVDX) is also well-positioned to benefit from small- and medium-sized enterprises increasingly adopting cloud-based software to automate manual processes.
In December, BTIG resumed its coverage of AvidXchange Holdings Inc. (NASDAQ:AVDX) with a Buy rating and a $14 price target. A BTIG analyst believes that the company’s strong position within the middle-market business-to-business invoice and payments sector will enable it to achieve robust and sustainable growth in the years ahead.
10. Calix Inc. (NYSE:CALX)
Expected EPS Growth Next FY: 39%
Number of Hedge Fund Holders: 29
Calix Inc. (NYSE:CALX) specializes in providing cloud and software platforms that enable broadband service providers (BSPs) to deliver advanced broadband services. The company’s products allow telecommunications and utility providers to deploy, monitor, and manage fiber broadband networks. Its platform seamlessly integrates both hardware and software to support the rollout of ultra-high-speed internet, smart home solutions, and business services.
As broadband adoption continues to grow, Calix Inc. (NYSE:CALX) is leading the way in transforming the broadband experience for both consumers and businesses. The company’s Broadband Platform is designed to optimize network performance while enhancing the subscriber experience, resulting in reduced costs, increased subscriber retention, and improved financial performance. Calix Inc. (NYSE:CALX) is also well-positioned to benefit from the federal government’s Broadband Equity Access and Deployment Program (BEAD), which aims to bring high-speed internet to all Americans with $42.5 billion in funding.
Following the company’s Q4 2024 results announcement on January 29, there were consistent upward revisions of earnings estimates and price targets. Analysts from Roth MKM, JP Morgan, Rosenblatt, and Needham reiterated their ratings and raised their price targets. A Needham analyst expressed strong confidence in the company’s growth prospects, noting that Calix Inc. (NYSE:CALX)’s software model has reached “critical mass.” The analyst also believes that the company can maintain its “strong” market share in U.S. rural broadband and expects an improving fiber deployment market to continue through 2025, independent of delayed BEAD subsidies. The analyst reiterated a Buy rating and raised the price target to $53 from $45 earlier.
9. Advanced Micro Devices Inc. (NASDAQ:AMD)
Expected EPS Growth Next FY: 43%
Number of Hedge Fund Holders: 96
Advanced Micro Devices Inc. (NASDAQ:AMD) is a semiconductor company that designs and manufactures high-performance computing and graphics solutions. Its product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions for various applications, including data centers, gaming, and embedded systems. It has gained significant market share in the CPU and GPU markets, competing directly with Intel Corp. (NASDAQ:INTC) and NVIDIA Corp. (NASDAQ:NVDA).
According to a Bloomberg report on February 22, citing individuals familiar with the situation, Advanced Micro Devices Inc. (NASDAQ:AMD) is in negotiations to sell some of its data center manufacturing plants. The company acquired these facilities in August of the previous year as part of its acquisition of ZT Systems for $4.9 billion. The potential sale may not be surprising, considering Advanced Micro Devices Inc. (NASDAQ:AMD) had announced last year its intention to divest the manufacturing business to avoid competition with its customers, such as Dell Technologies Inc. (NYSE:DELL) and Hewlett Packard Enterprise Co. (NYSE:HPE). The assets up for sale could be valued at up to $4 billion, including debt, and potential buyers include Taiwan-based companies Compal Electronics, Inventec Corp., Pegatron Corp., and Wistron Corp.
Loop Capital initiated coverage of Advanced Micro Devices Inc. (NASDAQ:AMD) with a Buy rating and a $175 price target on January 14, citing potential growth in accelerated computing and market share gains in the data center and PC segments. Meanwhile, on February 5, a Stifel analyst maintained a Buy rating on AMD but adjusted the price target to $162 from $200, still suggesting a 43% upside.
8. Astera Labs Inc. (NASDAQ:ALAB)
Expected EPS Growth Next FY: 50%
Number of Hedge Fund Holders: 51
Astera Labs Inc. (NASDAQ:ALAB) is a semiconductor company that specializes in developing connectivity solutions for AI and cloud infrastructure. Their product offerings include fabric switches, ICs, modules, and boards, along with software designed to manage and optimize connectivity.
On February 10, Astera Labs Inc. (NASDAQ:ALAB) reported impressive Q4 2024 results. Revenue for the quarter increased by 25% sequentially and 179% year-over-year, while full-year 2024 revenue rose by 242%. The company’s advanced chipsets facilitate faster, more reliable data transmission, which is crucial for cloud computing, artificial intelligence, and next-generation 5G networks. As global data consumption continues to grow exponentially, the company is well-positioned for significant growth, as its products are vital for building the necessary infrastructure to support these advancements.
An analyst from Craig-Hallum raised Astera Labs Inc. (NASDAQ:ALAB)’s price target to $125 from $105 and maintained a Buy rating, citing strong results and optimistic guidance. In response to the strong results, CEO Jitendra Mohan emphasized that 2025 is expected to be an even stronger year. He stated:
“We anticipate 2025 to be a breakout year as we enter a new phase of growth driven by revenue from all four of our product families to support a diverse set of customers and platforms. This includes our flagship Scorpio Fabric products for head-node PCIe connectivity and backend AI accelerator scale-up clustering.”
7. NVIDIA Corporation (NASDAQ:NVDA)
Expected EPS Growth Next FY: 50%
Number of Hedge Fund Holders: 223
NVIDIA Corp. (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system on a chip units (SoCs), and AI hardware and software. Over the years, the company has expanded its offerings from gaming GPUs to include data center solutions, AI computing, and deep learning technologies. The company’s GPUs are widely used in data centers for high-performance computing, AI training, and inference, making it a critical player in the data center ecosystem. Its products are essential for powering advanced applications in AI, machine learning, and data analytics. NVIDIA Corp. (NASDAQ:NVDA) boasts the best margin profile among the companies in this list.
Without a doubt, NVIDIA Corp. (NASDAQ:NVDA) experienced substantial gains from the AI-driven enthusiasm, as evidenced by its 180% share price increase in 2024. However, in 2025, the shares have been sluggish and have not delivered any returns as of the close on February 21. The company is set to report its Q4 2024 results on February 26, and it is expected to be a highly anticipated event. Analysts have expressed concerns about the significant investments made by mega-cap companies in AI and related technologies and the extent of earnings benefits from these investments.
A few days before the results, on February 21, Deutsche Bank released a cautious report on the company. While the analyst anticipates a strong set of quarterly results, he is not very optimistic about the guidance for the next quarter, which he believes offers limited potential upside from current levels. The ongoing complexities of the Blackwell ramp may restrict the guidance from exceeding the current consensus. The analyst also questions the sustainability of high demand levels in the coming years.
6. Alkami Technology Inc. (NASDAQ:ALKT)
Expected EPS Growth Next FY: 89%
Number of Hedge Fund Holders: 30
Alkami Technology Inc. (NASDAQ:ALKT) is a provider of cloud-based digital banking solutions. Its unique Alkami Digital Banking Platform supports multiple tenants simultaneously. This platform enables financial institutions to onboard and engage new users, accelerate revenues, and significantly improve operational efficiency. It offers a comprehensive set of software products across various functions, including account opening, marketing, data insights, money movement, customer service, financial wellness, and security.
Alkami Technology Inc. (NASDAQ:ALKT) is expected to report its Q4 2024 results on February 27. It is expected to continue to show strong topline growth, as evidenced by its Q3 2024 results announced in October, where it reported a robust 27% year-over-year revenue increase for the third quarter. Profitability also improved, with an adjusted gross margin of 62.8% (up from 58.7% in Q3 2023) and an adjusted EBITDA of $8.3 million, a significant improvement over the nearly $1 million reported in Q3 2023. Alkami Technology Inc. (NASDAQ:ALKT) also signed nine new digital banking clients and renewed 14 clients in that quarter.
Alkami Technology Inc. (NASDAQ:ALKT) currently enjoys a favourable view from the street with a consensus price target of $45 hinting at around 45% potential upside. In early December, an analyst from JP Morgan had raised his price target on Alkami Technology Inc. (NASDAQ:ALKT) to $45 from $42, reiterating his Overweight rating.
5. Credo Technology Group Holding Ltd. (NASDAQ:CRDO)
Expected EPS Growth Next FY: 100%
Number of Hedge Fund Holders: 43
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is a provider of advanced connectivity solutions for high-performance data centers, telecommunications, and cloud infrastructure. The company specializes in semiconductor-based solutions that address the increasing demand for high-speed data transmission, with a focus on silicon interconnects. It sells its products to hyperscalers, original equipment manufacturers (OEMs), original design manufacturers (ODMs) and optical module manufacturers, as well as to companies in the enterprise and HPC markets.
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) has been one of the favoured connectivity picks for analysts as part of their 2025 semiconductor outlooks. On January 17, a Barclays analyst raised his price target on Credo Technology Group Holding Ltd. (NASDAQ:CRDO) to $90 from $80 and maintained his Overweight rating. In January as well, Mizuho and Stifel also raised their price targets to $85 from $70 and $80, and maintained their Outperform/Buy ratings, respectively. The analyst from Stifel believes that the company is expected to be a prime beneficiary of the strong secular growth opportunity in AI-driven data center spending, which he believes is still in very early stages.
4. Appian Corp. (NASDAQ:APPN)
Expected EPS Growth Next FY: 151%
Number of Hedge Fund Holders: 26
Appian Corp. (NASDAQ:APPN) is a software company that specializes in automating business processes. Its software platform helps organizations streamline complex workflows, integrate systems, and enhance operational efficiency. Appian’s low-code platform allows users with limited technical expertise to quickly develop enterprise-grade applications, making it a valuable tool for both developers and business users.
Appian Corp. (NASDAQ:APPN) provides enterprise clients with a robust tool for rapidly building custom applications, automating intricate workflows, and improving business operations, positioning the platform to capture a larger share of the enterprise software market. The company reported its Q4 2024 results on February 19, showing strong performance with total revenue for the quarter growing by 15% year-over-year to $166.7 million. Of this, subscriptions revenue was $136.8 million, up 18%, and within that, cloud subscription revenue was approximately $99 million, up 19%. The company nearly broke even this quarter with a negligible adjusted net loss of $0.2 million, compared to a net loss of $4.9 million in the year-ago quarter. For FY 2025, the company expects to maintain its growth momentum with a guidance of 14% revenue growth. Adjusted EPS for the next year is anticipated to be between $0.17 and $0.22, reflecting strong growth over a loss of $0.35 per share in 2024.
Following the positive results, a Morgan Stanley analyst raised the price target on Appian Corp. (NASDAQ:APPN) from $32 to $35, reiterating an Equal Weight rating on the shares. The analyst noted that the company exceeded expectations across all metrics in Q4, and FY 2025 revenue guidance was broadly in line with consensus. He stated that the strong improvement in profitability is offsetting the slowing underlying growth trends.
3. Braze Inc. (NASDAQ:BRZE)
Expected EPS Growth Next FY: 164%
Number of Hedge Fund Holders: 31
Braze Inc. (NASDAQ:BRZE) is a customer engagement platform that empowers brands to deliver personalized, data-driven marketing experiences across digital channels. The company’s platform assists businesses in creating and managing real-time customer interactions, with a primary focus on mobile and web applications.
Braze Inc. (NASDAQ:BRZE) is rated as a consensus Buy with a price target of $50, suggesting a potential upside of 28% from current levels. During February 3-4, analysts from Barclays, Needham, JMP Securities, and William Blair reiterated their Buy ratings on the shares. As digital marketing becomes more data-driven and personalized, Braze’s ability to facilitate seamless cross-channel communication positions it for robust growth. The company is well-positioned to benefit from the increasing shift towards personalized digital experiences and the rising demand for targeted marketing strategies. The stock has underperformed the broader market so far in 2025, down 6% year-to-date. Returns were also weak in 2024, with a 17% decline in share price, making it a strong candidate for a rebound if management can reinvigorate significant growth.
2. Micron Technology Inc. (NASDAQ:MU)
Expected EPS Growth Next FY: 430%
Number of Hedge Fund Holders: 94
Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally. The company is well-positioned to capitalize on technological advancements in AI, 5G, autonomous vehicles, and data centers.
Micron Technology Inc. (NASDAQ:MU) anticipates a total addressable market (TAM) for HBM to expand from $16 billion in 2024 to over $100 billion by 2030. The company’s HBM revenue doubled sequentially in its latest quarter. To add to this growth, Micron Technology Inc. (NASDAQ:MU) has recently announced investing $7.0 billion in a new HBM advanced packaging facility in Singapore which is expected to be operational by 2026. A Bloomberg analyst recently highlighted that Singapore has recently become a favoured nation for expansion beyond China and Taiwan, which should lower the geopolitical risks for semiconductor operations.
On February 13, a Wells Fargo analyst reaffirmed his Buy rating on Micron Technology Inc. (NASDAQ:MU) shares with a target price of $140. The analyst is still bullish on the company as he believes that HBM ramp-up has accelerated which should help support growth. The company also guided for margins to improve in the second half of the year, which along with stable data center demand keeps the analyst positive.
1. Kulicke and Soffa Industries Inc. (NASDAQ:KLIC)
Expected EPS Growth Next FY: 4,733%
Number of Hedge Fund Holders: 32
Kulicke & Soffa Industries Inc. (NASDAQ:KLIC) engages in the design and manufacture of semiconductor assembly equipment and electronic assembly solutions. The company provides a range of products that support the packaging and testing of integrated circuits, which are critical for the production of advanced semiconductors used in consumer electronics, automotive, and telecommunications devices.
Kulicke & Soffa Industries Inc. (NASDAQ:KLIC) should benefit from the expansion of global semiconductor production as the demand for advanced semiconductor packaging and assembly solutions continues to rise across industries like consumer electronics, automotive, and telecommunications. The company reported its Q1 2025 results (FY ending October) on February 4 with revenue down 3% YoY but operating margin expanding 500 basis points to 11.4%. Adjusted EPS came in at $0.37, up 23.3% YoY. For Q2 2025, the company guided for an EPS of $0.19, versus a loss of $0.95 in the year ago period. Expected earnings growth for the next financial year appears high on easier comps as the company profits last year were curtailed by losses in some quarters.
The company continued to face slower growth due to the oversupply situation in the market, but the management expects FY 2025 to witness healthy broader industry growth and demand for its core solutions. After the results, a D.A. Davidson analyst has reiterated his Buy rating with a target price of $60, indicating a 44% potential upside.
While we acknowledge the potential of KLIC to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KLIC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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