In this article, we take a look at the Goldman Sachs Tech Stocks: 10 Stocks to Buy.
The technology sector delivered a strong performance in 2024, driven by chip companies, which played a pivotal role in supporting artificial intelligence (AI) infrastructure. Despite a slowdown in the second half of the year due to concerns over high valuations and the AI development timeline, technology remained one of the best-performing sectors as of mid-December. According to Goldman Sachs Research, as of September 2024, U.S. technology stocks have not entered a financial bubble, despite their rapid ascent fueled by AI enthusiasm. Instead, their growth has been underpinned by strong financial fundamentals, with the global tech sector’s earnings per share rising by approximately 400% since the Great Financial Crisis, far outpacing the broader market.
However, 2025 has presented new challenges for tech stocks. As of March 5, the Information Technology and Communication Services sectors declined by 4.42%, weighing down the broader index. Market volatility has particularly impacted the “Magnificent Seven” tech giants, which collectively lost approximately $2.7 trillion in market value over 50 days. On March 18th, Reuters reported that major U.S. indices, experienced further declines due to economic uncertainties and Federal Reserve policy expectations, reinforcing concerns about tech sector stability.
Despite short-term headwinds, the broader technology outlook remains positive. Deloitte’s 2025 Technology Industry Outlook projects a 9.3% increase in global IT spending, with data center and software segments anticipated to achieve double-digit growth. AI spending is expected to expand at a compound annual growth rate of 29% through 2028, indicating strong long-term demand. A 2024 Morgan Stanley analysis further suggests that hedge funds have increasingly added long positions in technology, media, and telecom (TMT) stocks, particularly in the semiconductor and software sectors, reflecting continued institutional confidence.
While AI-driven investments initially centered on data center infrastructure, Goldman Sachs analysts predict a shift toward software companies as AI monetization matures. The focus is expected to transition from AI model training to inferencing, where applications generate revenue, leading to further software sector expansion. Despite emerging AI competitors such as DeepSeek, major cloud computing and tech firms are ramping up AI-related capital expenditures in pursuit of artificial general intelligence (AGI).
Nevertheless, investors should prepare for further market volatility. Reuters reports that hedge funds exited U.S. tech and media stocks at the fastest pace in six months by February 21, reflecting shifting institutional strategies. Warren Buffett’s Berkshire Hathaway’s portfolio adjustments indicate a slight underweighting of technology stocks.
As the technology sector navigates both structural growth opportunities and near-term market turbulence, investors must weigh AI-driven innovation against macroeconomic risks. Goldman Sachs has identified key tech stocks poised for future growth, offering strategic opportunities in an evolving landscape. This article will examine 10 Goldman Sachs tech stocks that present compelling investment cases in 2025.
An engineer offering a demonstration of the ultra-low power FPGA technology.
Our Methodology
To develop our list of Goldman Sachs Tech Stocks: 10 Stocks to Buy, we ranked the top current holdings of the Goldman Sachs US Technology Opportunities Equity Portfolio according to the highest number of hedge funds ownerships. We have used Insider Monkey’s exclusive proprietary Q4 2024 database of hedge funds to arrive at our rankings.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. KLA Corporation (NASDAQ:KLAC)
Number of hedge fund owners – 61
KLA Corporation (NASDAQ:KLAC) is a leading provider of process control and yield management solutions for the semiconductor and related nanoelectronics industries. The company specializes in developing advanced inspection tools, metrology systems, and computational analytics, essential for manufacturing wafers, reticles, integrated circuits, packaging, and printed circuit boards.
KLA Corporation (NASDAQ:KLAC) continues to deliver strong financial performance, reporting Q2 FY25 revenue of $3.08 billion, hitting the upper end of guidance. GAAP EPS came in at $6.16, while non-GAAP EPS surged to $8.20, reflecting five consecutive quarters of accelerating earnings growth. The company’s revenue trajectory has also improved, from a 3% decline a year ago to 24% growth last quarter.
KLA Corporation (NASDAQ:KLAC)’s advanced semiconductor process control solutions are integral to AI chipmakers like Nvidia and Broadcom. Despite a 6.41% year-over-year revenue dip, quarterly revenue rose 8.34%, with 41.5% YoY earnings growth. Short interest increased by 17.13% month-over-month to 3.35 million shares (2.53% of float), indicating heightened market attention.
KLA Corporation (NASDAQ:KLAC) closed at $719.61 on March 19, 2025, up 1.35% for the day, outperforming the broader market. Over five years, shares have returned over 500%. Analysts remain bullish, with 60% out of 30 analysts tracking the stock, issuing Buy ratings. With a strong earnings outlook, KLA Corporation remains a key player in semiconductor equipment, benefiting from AI-driven industry tailwinds.
9. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of hedge fund owners – 70
Fabless semiconductor company leader, Marvell Technology, Inc. (NASDAQ:MRVL) specializes in data infrastructure solutions, ranging from data center cores to network edges. Its product portfolio includes data processing units, security solutions, automotive systems, and Ethernet controllers, serving sectors such as data centers, enterprise networking, and automotive industries.
Marvell Technology, Inc. (NASDAQ:MRVL) delivered a strong Q4 FY2025, reporting record revenue of $1.82 billion, up 20% sequentially and 27% year-over-year. The company’s data center segment, now driving 75% of total revenue, surged 24% sequentially, reflecting robust demand for AI-driven networking and storage solutions.
Despite these gains, Marvell’s stock tumbled 19% on March 5 following its earnings release. While the company posted slightly better-than-expected earnings, investors had hoped for an even stronger outlook. Since the start of the year, the stock has underperformed, currently trading at $69.81 which is 45.2% below its 52-week high of $127.48.
Financially, Marvell Technology, Inc. (NASDAQ:MRVL) reported $5.77 billion in annual revenue, with total revenue rising 4.71% year-over-year and 19.87% quarter-over-quarter. The company’s EBITDA stood at $1.35 billion, underscoring solid profitability.
Despite recent stock weakness, analysts remain bullish on Marvell Technology, Inc. (NASDAQ:MRVL). With 92% of 39 analysts issuing Buy ratings, the stock holds a strong consensus recommendation. The average price target from 40 ratings sits at $114.39, suggesting significant upside potential. If Marvell continues leveraging AI-driven growth in data centers, it could regain momentum and become a compelling opportunity for long-term investors.
8. Salesforce, Inc. (NYSE:CRM)
Number of hedge fund owners – 116
Salesforce, Inc. (NYSE:CRM) is a leading American cloud-based software company specializing in customer relationship management (CRM) solutions. Over the years, the company has established itself as a dominant player in the CRM industry, holding an estimated 58.7% market share in the CRM System Providers industry.
Salesforce, Inc. (NYSE:CRM) reported strong fiscal year 2025 results, with revenue reaching $37.9 billion, a 9% increase year-over-year. Fourth-quarter revenue grew 8% to $10 billion, while subscription and support revenue rose 10% to $35.7 billion. However, the company’s growth rate has slowed from its historical 20%+ annual increases to single-digit expansion in recent years.
To reignite momentum, Salesforce, Inc. (NYSE:CRM) is betting on artificial intelligence. The company launched Agentforce, an AI-powered automation platform, which has seen rapid adoption. Analysts remain bullish, with Morgan Stanley maintaining an “Overweight” rating and a $405 price target, citing AI as a key growth driver.
Despite solid earnings, forward guidance for Salesforce, Inc. (NYSE:CRM) disappointed investors. Its fiscal Q1 and full-year revenue forecasts fell short of expectations, raising concerns about the sustainability of its growth. The stock has struggled, declining year-to-date.
Financially, the company remains strong, with net income surging 50% year-over-year to $6.2 billion and EBITDA reaching $11.14 billion. Analysts maintain an average price target of $379.26, signaling a potential upside.
7. Broadcom Inc. (NASDAQ:AVGO)
Number of hedge fund owners – 128
Broadcom Inc. (NASDAQ:AVGO) is a global technology leader specializing in the design, development, and supply of a wide range of semiconductor and infrastructure software solutions. Broadcom serves diverse markets such as data centers, networking, software, broadband, wireless, and industrial sectors.
Broadcom’s market positioning is further strengthened by its involvement in artificial intelligence (AI). The company is projected to enter a customer AI chip market worth $60 billion to $90 billion by fiscal 2027, driven by its application-specific integrated circuits (ASICs) projects with multiple customers.
Broadcom Inc. (NASDAQ:AVGO) remains a dominant force in the semiconductor industry, with strong exposure to artificial intelligence (AI) and infrastructure software. For fiscal Q2 2025, the company expects revenue of approximately $14.9 billion, a 19% year-over-year increase. In its latest quarter, Broadcom’s total revenue surged 43.99% from the prior year and 6.13% sequentially, reflecting robust demand for its AI-driven semiconductor solutions. In the first quarter of fiscal year 2025, the company reported revenue of $14.916 billion, marking a 25% increase from the prior-year period. The company also achieved a GAAP net income of $5.503 billion for the quarter.
On March 7, Broadcom Inc. (NASDAQ:AVGO) stock rallied following better-than-expected earnings, offering some relief to AI-focused investors. However, after peaking at a $1 trillion valuation in December, the stock has faced a 22% decline amid broader market corrections. With a market cap of $911 billion, the stock remains highly valued and could see further volatility if market conditions worsen.
Despite near-term fluctuations, Broadcom Inc. (NASDAQ:AVGO)’s AI revenue continues to soar, reinforcing its long-term growth potential. Over the past five years, the stock has delivered a staggering 1,058.6% return. Analysts remain bullish, with 89% issuing a “Buy” rating and a strong price target outlook.
6. Apple Inc. (NASDAQ:AAPL)
Number of hedge fund owners – 158
Apple Inc. (NASDAQ:AAPL) is a leading multinational technology company renowned for its innovative consumer electronics, software, and online services. The company operates in the consumer electronics industry, consistently positioning itself as a premium brand through a focus on innovation, sleek design, and a seamless user experience.
Recently, Apple Inc. (NASDAQ:AAPL) has faced challenges in its AI development. The company announced delays in significant AI enhancements for its Siri voice assistant, initially expected in the upcoming iOS update. These features are now postponed until early 2026, impacting investor expectations and contributing to an 11% drop in Apple’s shares last week – the most substantial weekly decline since late 2022.
Additionally, the European Commission has taken action against Apple under the Digital Markets Act, mandating the company to enhance access to its operating systems for third-party developers, aiming to foster fairer competition and innovation in the tech industry.
Apple Inc. (NASDAQ:AAPL) remains a compelling AI investment due to its in-house chip designs, which enhance product functionality and margins without requiring heavy GPU investments. However, concerns over delayed AI features, particularly Siri upgrades, have led KeyBanc analyst Brandon Nispel to cut iPhone sales growth expectations for 2025 from 7% to 1%, maintaining a sell rating with a $200 price target as of March 13.
Additional risks include tariffs and potential disruptions to Apple’s search deal with Google amid an ongoing Department of Justice antitrust case. On the innovation front, the company’s foldable devices are set to enter prototyping next month, with mass production expected in late 2026. Apple Inc. (NASDAQ:AAPL) reported $391.04 billion in revenue over the past year, and its stock currently trades at $215.24. Analysts remain divided on its outlook, with an average price target of $253.71 from 50 ratings, reflecting a mix of optimism and caution over its AI integration and market dynamics.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of hedge fund owners – 193
Tech giant NVIDIA Corporation (NASDAQ:NVDA) specializes in the design and manufacture of graphics processing units (GPUs), central processing units (CPUs), and system-on-a-chip units (SoCs). These products serve diverse markets, including gaming, professional visualization, data centers, and automotive industries.
In March 2025, at its GPU Technology Conference (GTC), NVIDIA Corporation (NASDAQ:NVDA) unveiled several groundbreaking advancements. The company introduced the Blackwell Ultra AI chips, offering enhanced performance and memory, with availability expected in the latter half of 2025. NVIDIA announced the Vera Rubin AI chip, slated for release in late 2026, followed by Rubin Ultra in 2027.
Adding to NVIDIA’s AI expansion, CoreWeave, an AI cloud services provider backed by NVIDIA, has filed for an IPO which is expected to raise $4 billion. This move further solidifies the company’s influence in the AI-driven cloud computing sector. Despite recent setbacks, NVIDIA Corporation (NASDAQ:NVDA) boasts a market capitalization of $2.867 trillion, ranking as the world’s third most valuable company.
Macroeconomic uncertainty has created near-term headwinds, leading to a 12.5% decline in NVIDIA’s stock this year. Still, analysts remain bullish, with a consensus price target of $174.19 and 93% Buy ratings. Financially, NVIDIA Corporation (NASDAQ:NVDA) continues to outperform, with trailing twelve-month (TTM) revenue reaching $130.5 billion and EBITDA at $83.32 billion. The company’s five-year return stands at a staggering 2,115.39%, underscoring its long-term growth potential.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of hedge fund owners – 202
Operating within the interactive media and services industry, Alphabet Inc. (NASDAQ:GOOGL) has established a dominant position in global digital advertising and cloud computing markets. Its core products and services include Google Search, YouTube, the Android operating system, and Google Cloud services.
In the fourth quarter of 2024, Alphabet Inc. (NASDAQ:GOOGL) reported revenues of $96.5 billion, marking a 12% year-over-year increase, reflecting robust momentum across its business segments. The Google Services segment, encompassing Search, YouTube, and Android, contributed $84.1 billion, a 10% rise from the previous year. Google Cloud also demonstrated significant growth, reinforcing Alphabet’s competitive stance in the cloud computing sector.
In March 2025, Alphabet Inc. (NASDAQ:GOOGL) agreed to acquire cybersecurity firm Wiz for $32 billion in cash, aiming to bolster its cloud computing business’s security measures. This acquisition, the largest in Alphabet’s history, underscores the company’s commitment to enhancing its cybersecurity capabilities. However, the high valuation has raised investor concerns regarding capital discipline, leading to a 2.8% drop in Alphabet’s shares to $161.91 following the announcement.
Alphabet Inc. (NASDAQ:GOOGL) has seen over 20% decline in 2025 as of March 20, driven by rising AI investments and antitrust challenges. Despite near-term pressures, forecasts indicate a potential 100% surge in the next five years, fueled by strength in digital advertising. Google’s search ad revenue is expected to grow 10% to $216.5 billion in 2025. Q4 2024 earnings of $8.04 per share beat estimates, with revenue up 13.89% YoY. Currently, GOOGL trades near its 52-week low, but 79% of 68 analysts rate it a Buy. While some analysts remain cautious, Alphabet’s AI and cloud expansion strengthens its long-term growth prospects.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of hedge fund owners – 235
Meta Platforms, Inc. (NASDAQ:META), formerly known as Facebook Inc., is a leading provider of social networking, advertising, and business insight solutions. Through its major products such as Facebook, Instagram, Messenger, WhatsApp, and Oculus, Meta connects billions of users worldwide, facilitating personal communication and enabling businesses to reach global audiences.
In Q4 of 2024, Meta Platforms, Inc. (NASDAQ:META) reported a year-over-year revenue increase of 20.63%, outperforming several of its industry peers.
As of March 1, 2025, Meta’s stock has declined approximately 18% from its mid-February record high, yet it remains the only member of the “Magnificent Seven” mega-cap technology stocks to be in positive territory for 2025, up nearly 4% year-to-date.
Despite recent stock fluctuations, Meta Platforms, Inc. (NASDAQ:META) continues to invest heavily in artificial intelligence (AI) and virtual reality (VR). Notably, the company is developing Llama 4, a voice-powered AI aimed at competing with OpenAI and Google, enhancing digital user experiences. Financially, it maintains a strong balance sheet with $77.8 billion in cash and marketable securities, providing a solid foundation for ongoing investments and innovation. Meta Platforms Inc. (NASDAQ:META) reported a trailing twelve-month (TTM) revenue of $164.5 billion, with an average price target of $762.48 from 73 analyst ratings, 86% of which indicate a Strong Buy.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of hedge fund owners – 279
Microsoft Corporation (NASDAQ:MSFT) is a global technology leader renowned for its extensive range of software products, hardware devices, and cloud services. The company’s offerings include the Windows operating system, Microsoft Office suite, Azure cloud computing services, Surface hardware products, and the Xbox gaming platform. Operating across various sectors, Microsoft serves both consumer and enterprise markets, maintaining a dominant position in the software industry.
In the second quarter of fiscal year 2025, Microsoft Corporation (NASDAQ:MSFT) reported revenue of $69.6 billion, marking a 12% year-over-year increase. The Intelligent Cloud segment, driven by Azure, contributed significantly to this growth. However, CFO Amy Hood noted challenges in non-AI Azure sales, attributing them to execution issues in the partner sales motion.
Analyst perspectives on Microsoft’s stock have been favorable with 95% of 57 analyst ratings suggesting a Strong Buy. D.A. Davidson analyst Gil Luria upgraded the stock to a ‘Buy’ rating, setting a price target of $450, which is over 17% higher than its current level. Luria highlighted Microsoft Corporation (NASDAQ:MSFT)’s limited exposure to consumer spending downturns and its disciplined capital expenditure approach as factors positioning it as a “key shelter in the storm” during economic uncertainties.
As of March 20, 2025, Microsoft’s stock is trading at $385.14, reflecting a slight decrease of 0.69% from the previous close.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of hedge fund owners – 286
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology company specializing in e-commerce, cloud computing, digital streaming, and artificial intelligence. Amazon has evolved from an online bookstore into a global conglomerate, offering a vast array of products and services, including consumer electronics, apparel, and cloud services through Amazon Web Services (AWS).
Amazon.com, Inc. (NASDAQ:AMZN) reported strong financial results for 2024, with net sales rising 11% year-over-year to $638.0 billion. Q4 net sales grew 10% to $187.8 billion, while net income nearly doubled to $59.2 billion ($5.53 per share) from $30.4 billion ($2.90 per share) in 2023.
However, recent stock performance has been mixed, closing at $195.54 on March 19, 2025, below its 50-day and 200-day moving averages, indicating short-term bearish momentum.
Amazon.com, Inc. (NASDAQ:AMZN) continues to expand its AI initiatives, unveiling a new “AI Alexa” at a New York event. Analysts remain bullish, with JMP Securities maintaining a “Market Outperform” rating and a price target of $285. The consensus 12-month target of $267.98 suggests a potential 34.8% upside. Looking ahead, the company plans over $100 billion in capital expenditures for 2025, focusing on AWS and AI, balancing long-term growth potential with near-term profitability pressures.
Overall Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of Goldman Sachs tech stocks: 10 stocks to buy. While we acknowledge the potential for AMZN as an investment, our conviction lies in the belief that some 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 AMZN 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 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
