Best Tech Stocks to Watch in March 2025

February saw a sharp selloff in leading tech names, with Nvidia (NVDA) pulling back as competition intensified, particularly from Chinese startup DeepSeek’s new AI chatbot, which aims to challenge OpenAI’s dominance. Meanwhile, shares of Palantir Technologies (PLTR) tumbled 27% from all-time highs following announcements of federal budget cuts, as government contracts account for 40% of the company’s revenue.

The Technology Select Sector SPDR Fund (XLK) ended the month flat, as the broader AI selloff and economic uncertainty weighed on the sector, driven by tariff threats between the U.S. and its trading partners.

Below is an analysis of the top tech stocks for March 2025, screened for best value, fastest growth, and most momentum. All stocks are listed on the Nasdaq or New York Stock Exchange. We excluded stocks with a price under $5, an average daily trading volume of less than 100,000, and a market capof less than $300 million.

All data are current as of Feb. 25, 2025.

Best-Value Tech Stocks

Value investing is about finding stocks trading below their true worth, with the expectation that the market will eventually correct the mispricing. Investors often use price-to-earnings (P/E) ratio, looking for stocks with a low P/E ratio to uncover value. Typically, a lower P/E ratio signals an undervalued stock because it means the company is valued less than its fundamental value. These stocks may offer a stronger return after the market adjusts.

However, bargain hunters must exercise patience, as it may take multiple quarters (or years) before a turnaround materializes. Some stocks may also remain cheap for a reason, falling into a “value
trap,” continuing to underperform despite appearing undervalued. Moreover, the P/E ratio should not be viewed in isolation. Investors should ask why a stock is trading at a discount to its peers and whether that gap is likely to close due to a business recovery, or the market recognizing the value
opportunity.

• Yiren Digital Ltd: A fintech company based in China, Yiren Digital operates a financial marketplace connecting investors with borrowers. The company offers payment processing, loan services, insurance products, and ecommerce products. On Feb. 18, Yiren announced it had integrated DeepSeek’s AI technology to enhance operational efficiency, streamline workflows, and improve customer interactions across financial and lifestyle services in China.
• DoubleDown Interactive Co., Ltd Double Down is a gaming company that makes apps for mobile and desktop players. Their three most popular products are DoubleDown Casino, DoubleDown Fort Knox, and DoubleDown Classic Slots. The company ended fiscal year 2024 with 1.36 million average monthly active users, down from 1.75 million the year prior, though average revenue per user increased to $1.30 from $1.09 across the same time period. 
• i3 Verticals, Inc: i3 Verticals specializes in developing and acquiring software solutions for the public sector and health care markets. During its first quarter 2025, i3 saw annualized recurring revenues grow 7.6% compared to first quarter 2024.

Fastest-Growing Tech Stocks

Growth investors look for companies with increasing revenue and earnings per share (EPS), believing these metrics signal strong business fundamentals and potential for value
appreciation. However, relying on just one of these indicators can present an incomplete picture, as factors like tax law changes, mergers, or one-time gains can distort the numbers.

While growth investing offers the potential for high returns, it also comes with risks, such as inflated valuations, market volatility, and companies failing to sustain rapid expansion. Investors should
be cautious of excessive hype, unsustainable growth rates, and external economic factors that could impact performance. For a more balanced assessment, we employ a dual-metric approach. We equally weight the most recent year-over-year (YOY) percentage growth in both revenue and earnings per share (EPS), giving each consideration to provide a clearer view of each company’s true growth trajectory. In addition, we exclude 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.

• Pinterest, Inc: With over half a billion users worldwide, Pinterest is a visual search and discovery platform that allows people to find inspiration, curate ideas, and shop for products. 2024 was a banner year for Pinterest, with the company 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 Feb. 7, Sportradar announced a long-term extension and expansion of their partnership with Major League Baseball to 2032, with MLB acquiring an equity stake in Sportradar.
• Dynatrace, Inc: Dynatrace provides AI-powered solutions to help businesses monitor, analyze, and optimize their digital ecosystems, allowing customers to detect issues in real time and improve system performance. Dynatrace has expanded its AI engine to shift enterprises from reactive AI solutions to preventive operations, enabling organizations to predict and prevent IT issues before they occur.

Tech Stocks With the Most Momentum

Momentum investing is a strategy that seeks to capitalize on existing market trends by investing in stocks that have recently outperformed their peers or the broader market. The core idea is that stocks on an upward trajectory are likely to continue rising as long as the fundamental drivers
behind their growth remain intact.

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.

• 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 Feb. 12, Red Cat announced that 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 an integrated photonics and quantum technology company focused on developing accessible and affordable quantum computing solutions. Quantum Computing CEO William McGann recently highlighted the company’s plans to commercialize its technology, open a facility for making thin film lithium niobate (TFLN) chips, and expand strategic partnerships in AI.
• VNET Group, Inc.: VNET serves over 7,500 enterprise customers across more than 30 cities in China, offering data center hosting, cloud solutions, and internet security services. The company recently announced a strong third quarter of 2024 thanks to the success of its data center hosting business, driven by rising AI demand.

Advantages of Tech Stocks

Growth Potential

Tech companies, especially those in emerging sectors like artificial intelligence, cloud computing, and cybersecurity, often experience rapid revenue and earnings growth. Many tech firms have scalable business models that allow them to expand globally, while maintaining high gross margins.

Innovation

The tech industry is constantly evolving, with companies pioneering groundbreaking innovations that reshape entire industries. Investors in leading tech firms can benefit from major technological shifts, such as AI, and automation, creating long-lasting competitive advantages.

Recurring Revenues

Many tech companies, particularly those in software, cloud computing, and digital services, operate on subscription-based or recurring revenue models, ensuring more stable and predictable cash flows. These models provide businesses with greater revenue visibility, reduce dependence on one-time sales, and enhance customer retention through long-term contracts and service integrations. Additionally, recurring revenue helps mitigate economic downturns by offering consistent income streams, while also enabling companies to reinvest in research, development, and expansion

Disadvantages of Tech Stocks

Volatility

Tech stocks are known for their high volatility because rapid technological changes and competitive pressures can lead to significant price fluctuations. They often carry high valuations based on growth expectations, making them susceptible to market corrections if they fail to meet these
projections. Furthermore, regulatory challenges and geopolitical tensions can impact the sector, introducing additional risks and uncertainties for investors.

Valuation Risks

Owing 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 losses for investors. Moreover,
early-stage tech companies often allocate a significant portion of their capital to staffing and marketing to sustain their high growth rates. As a result, they tend to remain unprofitable in their initial stages, often relying on outside capital to fund expansion, despite achieving higher gross margins than companies in non-technology sectors.

Regulatory and Competitive Challenges

The tech industry faces increasing scrutiny from regulators on issues like data privacy,
antitrust concerns, and cybersecurity. Tech giants such as Meta Platforms (META)
and Alphabet Inc (GOOGL) are no strangers to regulatory probes and fines.  Additionally, competition is fierce, with companies constantly innovating to maintain their market position, which can erode profitability and market share over time.

The Bottom Line

Tech stocks offer compelling investment opportunities due to their high growth potential, continuous innovation, and recurring revenue models, making them a dominant force in the global economy. AI is set to be a major driver of technological advancements in 2025, with the potential to
disrupt all major industries. However, the sector can be volatile, with regulatory scrutiny expected to increase along with innovation. Investors should exercise caution, ensuring that even the most promising tech stocks are evaluated critically to avoid getting caught up in market bubbles or
speculative hype.

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As of the date this article was written, the author does not own any of the above securities.