Top Tech Stocks for March 2025
February 2025 saw a significant downturn in prominent technology stocks. Nvidia (NVDA) experienced a pullback due to heightened competition, especially from the Chinese startup DeepSeek’s new AI chatbot, which is vying for dominance against OpenAI. Meanwhile, Palantir Technologies (PLTR) shares decreased substantially following announcements of federal budget cuts, as government contracts contribute a significant portion of the company’s revenue (40%). The Technology Select Sector SPDR Fund (XLK) closed the month flat, as the broader AI sell-off and economic uncertainties, amplified by potential tariff threats between the U.S. and its trading partners, weighed on the sector.
This article analyzes top tech stocks for March 2025, screened for value, growth, and momentum. All stocks are listed on the Nasdaq or New York Stock Exchange. The analysis excludes stocks with a share price under $5, an average daily trading volume of less than 100,000, and a market capitalization of less than $300 million. All data are current as of February 25, 2025.
Best-Value Tech Stocks
Value investing centers on identifying stocks that are trading below their intrinsic worth, anticipating that the market will eventually recognize and correct the mispricing. Investors often use the price-to-earnings (P/E) ratio to assess value, seeking stocks with lower P/E ratios as potential opportunities. Typically, a lower P/E ratio suggests that a company is undervalued because its market valuation is less than its underlying fundamental value. These stocks may offer greater returns after the market adjusts to recognize their true value. However, value investors need patience, as it may take several quarters or even years for a turnaround to materialize. Furthermore, some stocks may remain cheap for a reason, falling into a “value trap” and continuing to underperform despite appearing undervalued.
Investors evaluating the P/E ratio should analyze the reasons behind a stock trading at a discount compared to its peers and determine if the gap is likely to close due to business recovery or the market recognizing the value.
Best-Value Tech Stocks
Source: TradingView
Yiren Digital Ltd.
Based in China, Yiren Digital is a fintech company that operates a financial marketplace connecting investors with borrowers. The company offers payment processing, loan services, insurance products, and e-commerce products. On February 18, Yiren announced the integration of DeepSeek’s AI technology to streamline operations, improve workflows, and enhance customer interactions across its financial and lifestyle services in China.
DoubleDown Interactive Co., Ltd
DoubleDown is a gaming company that develops apps for mobile and desktop platforms. Their top products include DoubleDown Casino, DoubleDown Fort Knox, and DoubleDown Classic Slots. The company ended fiscal year 2024 with 1.36 million average monthly active users, a decrease from 1.75 million the previous year, while revenue per user increased to $1.30 from $1.09.
i3 Verticals, Inc.
i3 Verticals specializes in developing and acquiring software solutions for the public sector and healthcare markets. During its first quarter of 2025, i3 Verticals experienced 7.6% growth in annualized recurring revenues compared to the first quarter of 2024.
Fastest-Growing Tech Stocks
Growth investors search for companies with increasing revenue and earnings per share (EPS), viewing these metrics as indicators of robust business fundamentals and potential for value appreciation. Relying on just one of these indicators can be misleading, as factors like tax law changes, mergers, or one-time gains can distort the numbers.
While growth investing provides the possibility of high returns, it also involves risks, such as inflated valuations, market volatility, and companies failing to maintain rapid expansion. Investors should be wary of excessive hype, unsustainable growth rates, and external economic factors that could affect performance. For a more balanced approach, a dual-metric approach is used here.
The analysis weights the most recent year-over-year (YOY) percentage growth in both revenue and earnings per share (EPS), giving equal consideration to provide a clearer view of each company’s growth prospects. Additionally, the analysis excludes companies that exhibit extraordinarily high growth rates—specifically, those with quarterly growth exceeding 1,000%—since these are outliers not likely on a sustainable trendline.
Fastest-Growing Tech Stocks
Source: TradingView
Pinterest, Inc
With over half a billion users globally, Pinterest is a visual search and discovery platform enabling users to find inspiration, curate ideas, and shop for products. 2024 was a successful year for Pinterest, achieving its first $1 billion revenue quarter and a record 553 million monthly active users.
Sportradar Group AG
Sportradar Group AG is a global sports technology company that provides data analytics, betting solutions, and media services to sports organizations, media outlets, and sportsbooks. On February 7, Sportradar announced an expanded, long-term partnership with Major League Baseball through 2032, with MLB acquiring an equity stake in Sportradar.
Dynatrace, Inc
Dynatrace offers AI-powered solutions to help businesses monitor, analyze, and optimize their digital ecosystems. This allows customers to find and resolve issues in real-time and improve system performance. Dynatrace has expanded its AI engine to shift enterprises from reactive AI solutions to preventive operations, permitting companies to predict and prevent IT issues.
Tech Stocks With the Most Momentum
Momentum investing capitalizes on existing market trends by investing in stocks that have recently outperformed their peers or the broader market. This strategy relies on the idea that stocks on an upward trajectory are likely to keep rising as long as the primary drivers behind their growth remain strong. This strategy is particularly popular in the tech sector, where innovation, product launches, and market disruptions often lead to rapid stock price appreciation. However, investors must carefully monitor stock valuations, as fast-rising stocks often outpace their fundamentals. When valuations become overstretched, they can form speculative bubbles that are vulnerable to sharp selloffs if market sentiment shifts.
Here are the tech stocks with the highest total return in the last 12 months.
Tech Stocks With the Most Momentum
Source: TradingView
Red Cat Holdings, Inc
Red Cat is a drone technology company specializing in integrating robotic hardware and software for military, government, and commercial applications. On February 12, Red Cat announced it had raised up to $20 million in debt financing and applied for $58 million in debt financing from the Department of Defense Office of Strategic Capital.
Quantum Computing, Inc
Quantum Computing is a photonics and quantum technology company dedicated to developing accessible and affordable quantum computing solutions. Quantum Computing CEO William McGann recently discussed the company’s plans to commercialize its technology, open a facility for manufacturing thin-film lithium niobate (TFLN) chips, and expand strategic partnerships in AI.
VNET Group, Inc.
VNET serves over 7,500 enterprise clients across more than 30 cities in China, providing data center hosting, cloud solutions, and internet security services. The company recently reported strong third-quarter 2024 results thanks to the success of its data center hosting business, driven by rising AI demand.
Advantages of Tech Stocks
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Growth Potential: Tech companies, especially those in areas like artificial intelligence, cloud computing, and cybersecurity, often experience rapid growth in revenue and earnings. Many tech firms have scalable business models that enable global expansion while maintaining high-profit margins.
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Innovation: The tech industry is continuously evolving, with companies pioneering groundbreaking innovations that can reshape entire industries. Investors in leading tech companies can benefit from major advancements in technology such as AI and automation, which can offer lasting competitive advantages.
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Recurring Revenues: A significant number of tech companies, particularly those in software, cloud computing, and digital services, operate on subscription-based or recurring revenue models, which helps to ensure more stable and predictable cash flows. These models provide businesses with greater revenue visibility, reduce dependency on one-time sales, and help with customer retention through extended contracts and service integrations. Recurring revenue also aids in mitigating economic downturns by offering consistent income streams and allowing companies to reinvest in research, development, and expansion.
Disadvantages of Tech Stocks
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Volatility: Tech stocks are known for their high volatility due to rapid technological changes and intense competitive pressure that can lead to large price changes. These stocks often carry high valuations based on growth expectations, making them vulnerable to market corrections if those projections are not achieved. Regulatory challenges and geopolitical tensions can also affect the sector and introduce further risks and uncertainties.
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Valuation Risks: Due to their high growth potential, many tech companies trade at high earnings or revenue multiples, making them susceptible to overvaluation. If growth expectations do not materialize, these stocks can experience sharp declines, leading to potential investor losses. Early-stage tech companies often invest a significant portion of their capital in staffing and marketing to sustain high growth rates, resulting in unprofitability in their beginning stages. These companies often depend on external capital to fund expansion, despite achieving higher gross margins compared to companies in non-technology sectors.
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Regulatory and Competitive Challenges: The tech industry is facing increasing scrutiny from regulators on issues such as data privacy, antitrust concerns, and cybersecurity. Major tech companies such as Meta Platforms (META) and Alphabet Inc (GOOGL) frequently face regulatory probes and fines. Additionally, competition is fierce, with companies continuously innovating to maintain their market position, which can reduce profitability and market share over time.
The Bottom Line
Tech stocks represent appealing investment options because of their strong growth potential, ongoing innovation, and recurring revenue models, making them a dominating force in the global economy. AI is expected to be a crucial technological advancement driver in 2025, with the potential to disrupt major industries. However, the sector can be volatile, with regulatory scrutiny likely to increase alongside innovation. Investors should employ caution, critically evaluating even the most promising tech stocks to avoid market bubbles or speculative hype. The comments, opinions, and analyses expressed here are for informational purposes only.
