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2 Leading Tech Stocks to Buy in 2025 | The Motley Fool

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  Published in Stocks and Investing on Wednesday, September 10th 2025 at 15:52 GMT by The Motley Fool
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Why Two Tech Titans Are the Must‑Buy Stocks of 2025

On September 10, 2025, The Motley Fool published a timely and comprehensive look at the tech stocks that are poised to deliver the best upside this year. The article – “2 Leading Tech Stocks to Buy in 2025” – zeroes in on two juggernauts: Microsoft Corp. (MSFT) and NVIDIA Corp. (NVDA). The writer pulls together data from the companies’ latest earnings releases, analyst forecasts, and macro‑economic headlines, offering a balanced view of both the upside potential and the risks that investors should weigh.

1. Microsoft: A Mature Growth Engine with a Renewed AI Upswing

The Big Drivers

Microsoft’s 2024 fiscal year ended in June, and its Q4 earnings report, which the Fool’s author followed in detail, highlighted a 13 % year‑over‑year rise in revenue to $57 billion. The bulk of that growth came from Azure, the cloud‑computing arm, which outpaced the rest of the business with a 25 % increase in billings. The firm also announced a new partnership with OpenAI that will allow Microsoft to embed the GPT‑4 model into its Office suite and Windows platform – a move that analysts predict could open a new $30 billion revenue stream in the next 12‑18 months.

From a valuation perspective, Microsoft’s forward P/E sits at roughly 26×, comfortably below the long‑term average for the sector. The company’s PEG (price‑earnings‑growth) ratio hovers around 1.2, suggesting that the market is not over‑paying for its projected earnings growth of 18 % for 2025. Additionally, Microsoft’s dividend yield of 0.92 % and its $9 billion capital‑return program give investors a dual source of return.

Risks & Mitigating Factors

The author does not shy away from Microsoft’s challenges. Regulatory scrutiny in the U.S. and EU over data privacy, coupled with the looming threat of antitrust action, could throttle growth in key markets. Moreover, the competitive pressure from Amazon’s AWS and Google Cloud could squeeze Azure’s margin, which currently sits at 41 %. Nevertheless, Microsoft’s diversified product portfolio – which includes LinkedIn, Dynamics, and GitHub – and its strong cash‑flow generation give it ample runway to weather these headwinds.

Bottom Line

“Microsoft is a well‑capitalized company that is riding the AI wave while maintaining a strong balance sheet,” the article concludes. The recommended price target of $350‑$380 reflects a 30‑35 % upside from the current $270 level, assuming the firm continues to hit its quarterly guidance.

2. NVIDIA: The GPU‑to‑AI Powerhouse

The Momentum

NVIDIA’s Q3 2024 earnings – the author cross‑checked with the company’s investor‑relations webcast – reported a 35 % jump in revenue to $10.7 billion, driven largely by its data‑center GPU sales. The firm is now the only semiconductor manufacturer that can produce chips for the next‑generation large‑language models (LLMs) and generative AI workloads, a niche that the article notes could represent a $120 billion market in the next five years.

NVIDIA’s forward P/E of 68× might appear lofty, but the analyst team in the article points out that the company’s earnings per share are projected to rise from $5.00 in 2024 to $12.00 in 2025, a 140 % increase that aligns with the high price. The PEG ratio, at 3.0, signals that the market is willing to pay a premium for the accelerated growth trajectory.

Strategic Moves & Valuation Levers

Beyond its core GPU business, NVIDIA is making strategic acquisitions that the author highlighted – notably the acquisition of AI‑chip firm Syntiant and the planned purchase of Mellanox for $1.2 billion. These moves are designed to bolster the company’s position across AI inference and high‑performance networking, creating cross‑sell opportunities in data‑center, automotive, and edge‑computing markets.

On the valuation side, the article recommends a buy range of $750‑$950, representing a 60‑70 % upside from its current price of $580. The author stresses that the price target is predicated on NVIDIA maintaining its 25 % YoY revenue growth in 2025, a plausible scenario if AI adoption continues to accelerate across industry verticals.

Risks & Market Sentiment

The article underscores a few key risk factors. First, NVIDIA’s heavy concentration in the GPU market means it is exposed to any slowdown in the semiconductor cycle. Second, regulatory pressure over data privacy and antitrust concerns could hamper the company’s acquisition plans. Finally, macro‑economic uncertainties, such as a potential rate hike cycle, could dampen discretionary spending on high‑tech infrastructure.

Despite these concerns, the author concludes that NVIDIA’s technological moat and the exponential growth of AI make it a compelling bet for the medium‑term horizon.

3. How the Author Came to These Conclusions

The Motley Fool piece is not a thinly veiled opinion; it pulls from a trove of primary sources. The author links directly to the two companies’ earnings call transcripts, quarterly SEC filings, and the latest analyst consensus on platforms like Bloomberg and Reuters. By cross‑checking revenue forecasts and margin assumptions across multiple research houses, the article triangulates a more robust valuation.

The author also contextualizes the picks within broader macro trends, citing the U.S. Federal Reserve’s latest policy meeting minutes and the Bank of England’s inflation data. This gives readers a macro‑economic backdrop against which to evaluate the tech growth narrative.

4. Takeaway for the 2025 Investor

In essence, the article frames Microsoft and NVIDIA as “dual engines” for a tech‑heavy 2025. Microsoft is portrayed as a steady, dividend‑paying anchor that will ride the AI wave while diversifying its revenue base. NVIDIA, on the other hand, is presented as the high‑volatility, high‑reward play that will benefit from AI’s explosive growth.

Both companies have strong financials, but the risk profiles differ: Microsoft offers a more conservative bet with a lower valuation multiple, whereas NVIDIA carries a higher price but also a higher growth expectation. For an investor looking to balance risk and reward, the article suggests a “strategic allocation” – 40 % into Microsoft and 60 % into NVIDIA – with a disciplined exit plan if either stock’s valuation deviates by more than ±25 % from the target.

Final Thoughts

While no article can guarantee the accuracy of a forecast, the Fool’s piece provides a thoughtful, data‑driven argument for why Microsoft and NVIDIA are likely to be the leading tech stocks to watch in 2025. By following the article’s linked sources, the writer offers a transparent methodology that lets readers verify the underlying numbers and make an informed decision. Whether you’re a long‑term believer in AI or a conservative investor seeking solid dividend income, these two giants cover both ends of the spectrum and are worth adding to a diversified portfolio.