Best Tech Stocks to Watch in April 2025

These are the top tech stocks based on best value, fastest growth, and most momentum.

Tech stocks continued to retreat in March as markets grappled with heightened volatility following the Trump Administration’s announcement of tariffs targeting major trading partners. Economic data during the month offered a mixed view of the Federal Reserve’s outlook on potential rate cuts—consumer sentiment appeared to be weakening, yet the labor market remained robust, with unemployment holding steady at 4.1%. Amid the geopolitical and macroeconomic uncertainty, the Technology Select Sector SPDR Fund (XLK) declined 4% in March.

All data are current as of March 27, 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: An AI-powered fintech company based in China, Yiren Digital offers payment processing, loan services, insurance and ecommerce products. On March 27, Yiren announced it had formed a strategic joint venture to deliver AI-powered financial services in Indonesia.
• Hut 8 Corp: Hut 8 is a digital infrastructure company focused on high-performance computing hosting and Bitcoin mining. As of March 6, the company owns over 1 gigawatt of energy infrastructure across Canada and the U.S.
• Yalla Group Limited: Yalla Group is the leading online social networking and gaming platform in the Middle East and North Africa region. The company ended its fiscal year 2024 with 41 million monthly active users and 12 million paying users, generating $340 million in revenue.

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.

• InterDigital, Inc: InterDigital is a research and development company specializing in wireless, video, and AI technologies for smartphones, consumer electronics, vehicles, and cloud services. In early March, the company signed a new multi-year licensing deal with a major Chinese smartphone vendor, increasing its annualized recurring revenue outlook by $40 million.
• Innodata, Inc.: Innodata is a data engineering company specializing in delivering high-quality training data for use in generative AI models. Recently the company reported record Q4 and full-year 2024 results, with Q4 revenue up 127% year-over-year to $59.2 million and full-year revenue nearly doubling to $170.5 million.
• CleanSpark, Inc: Self-described as “America’s Bitcoin Miner,” CleanSpark develops bitcoin mining infrastructure across the U.S. As of Feb. 28, the company owns or operates 915 megawatts of mining sites and holds 11,177 bitcoins.

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. While the Pentagon faces projected budget cuts of $50 billion over the next five years, drone technology remains a top defense priority, positioning Red Cat to benefit from continued investment in the sector.
• Quantum Computing, Inc: Quantum Computing is an integrated photonics and quantum technology company focused on developing accessible and affordable quantum computing solutions. Despite skepticism surrounding the near-term viability of quantum computing, the company has partnered with agencies such as NASA, working “to support NASA’s advanced imaging and data processing demands.”
• Innodata, Inc: Innodata is a data engineering company specializing in delivering high-quality training data for use in generative AI models. Recently the company reported record Q4 and full-year 2024 results, with Q4 revenue up 127% year-over-year to $59.2 million and full-year revenue nearly doubling to $170.5 million.

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.