3 High-Potential Tech Stocks to Invest in During a Buoyant Market

In the constantly evolving tech sector, several companies have shown resilience and growth potential despite numerous market challenges. In the past year, the enthusiasm for artificial intelligence (AI) and related technologies has led to a surge in tech stocks, balancing out concerns over interest rates and geopolitical issues. With the tech-heavy Nasdaq Composite nearing record highs, some investors might be second-guessing their decision to invest further in tech companies. However, stocks like Meta Platforms, ASML, and Broadcom appear to offer promising investment opportunities even in this climate.

Meta Platforms

Meta Platforms, the largest social media conglomerate, faced numerous challenges in 2022, including privacy updates from Apple, fierce competition from TikTok, and other external pressures, all of which impacted its main revenue source—advertising. This led to a drop in both revenue and earnings. Despite this, Meta showed a strong recovery in 2023 with increased revenue and earnings, suggesting that its ad business has effectively adapted and can sustain its investment in Reality Labs. Additionally, Meta's initiation of a dividend and a significant stock buyback plan highlight its financial robustness. With forecasted growth and a reasonable valuation, Meta Platforms emerges as a compelling choice for investors.

ASML

ASML stands out as the premier supplier of lithography systems, essential for chip manufacturing, and holds the title of the sole provider of extreme ultraviolet (EUV) lithography systems. Despite expecting flat revenue in 2024 due to export restrictions, the company is predicted to see notable growth in 2025 with the introduction of advanced EUV systems and the stabilization of PC and smartphone markets. Although ASML's stocks carry a premium valuation, its critical role in semiconductor production lends credibility to its price tag, making it an attractive stock for those confident in the sector's expansion.

Broadcom

As a diversified tech enterprise, Broadcom delivers a variety of chips and has also moved into infrastructure software by absorbing several major companies. The acquisition of VMware in particular has bolstered its software division. Analysts project consistent revenue and earnings growth in the forthcoming years, making Broadcom stock attractive for those seeking a stable tech-oriented investment that spans semiconductors, software infrastructure, and cloud services.

Meta, ASML, Broadcom