Likewise, investment firm Macquarie expects software stock fundamentals to “remain generally positive in 2025," although "potentially accompanied by bouts of volatility." Related: Bank of America reveals top technology stock pick for 2025 "We expect positive sentiment to persist,

Artificial intelligence (AI) continued to be a major investment theme in 2024, driving tech stocks to record highs as companies continued to pour millions into the emerging technology. With no signs of slowing down,

SemiAnalysis expert Myron Xie says Taiwan Semiconductor Manufacturing Co. Ltd. is “the only game in town for AI chips.” TSMC is currently the leading and most reliable supplier of advanced artificial intelligence chips – and counts Nvidia as well as the hyperscalers committed to building their chips as customers.

SoundHound saw its shares climb 836% in 2024 while Palo Alto returned a more pedestrian 23%. But Wall Street only expects one to repeat its performance while the other could be in for a down year.

With OpenAI having started the AI arms race through its groundbreaking advancements, there are no signs that the AI startup may stop any time soon.

Nvidia (NASDAQ: NVDA) has by far been the biggest beneficiary of the AI wave and analysts have been busy slapping higher and higher price targets for the stock. NVDA has clearly proved its naysayers wrong and is up 317%,