Big Tech Stock Predictions for 2025: Winners & Losers

Technology is everywhere. It’s in our work, the vehicles we drive, the gadgets we use, and the healthcare services we access. Innovative developments have transformed virtually every aspect of our lives over the past few years, and this trend is expected to continue.

Unsurprisingly, when a sector is booming, those with the foresight to have invested in its fastest-growing businesses will be cracking open the champagne.

This has certainly been the case for the so-called Magnificent Seven technology stocks whose share prices have soared on the back of huge demand.

But what is the future of tech stocks? Can the remarkable stock price increases of the past year continue into 2025, or have we reached a plateau?

In our tech stock predictions for 2025, we look at how this sector has performed over the past year and which companies analysts expect to be the winners and losers.

Table of Contents Table of Contents

1. Key Takeaways
2. Analysts' Consensus Big Tech Stock Forecasts
3. Performance of Big Techs
4. Major Technology Sector Drivers in 2025
5. Biggest Winners 2025
6. Biggest Losers 2025
7. The Bottom Line
8. FAQs
9. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Analysts' Consensus Big Tech Stock Forecasts
3. Performance of Big Techs
Show Full Guide
4. Major Technology Sector Drivers in 2025
5. Biggest Winners 2025
6. Biggest Losers 2025
7. The Bottom Line
8. FAQs
9. References

Analysts’ Consensus Big Tech Stock Forecasts

Many of the world’s biggest technology names should see their stock prices rise over the coming year, according to consensus analyst views compiled by MarketBeat as of January 8, 2025.

However, some of these increases are likely to be very modest, while a few popular tech stocks could see their share prices fall substantially.

Here, we take a look at where analysts believe the stock of the so-called Magnificent Seven will be at the start of 2026.

Performance of Big Techs

It’s been a pretty good 12 months for investors in technology companies as the so-called Magnificent Seven have seen their stock values rise substantially.

Their weight on indices means they also “exert huge influence” over Wall Street performance, according to Susannah Streeter, head of money and markets at Hargreaves Lansdown.

She said: “They’ve been pushed even higher on a wave of enthusiasm for the potential AI presents and expectations of lighter-touch regulation with President Trump returning to the White House.”

Major Technology Sector Drivers in 2025

Here we take a look at the factors that could help drive the top-performing tech stocks over the coming year.

Remarkable Advances

Technological advances that may have seemed unfathomable just a few years ago are now commonplace, according to Morgan Stanley.

The financial services giant highlighted the phenomenal rise of generative artificial intelligence (GenAI) to illustrate the rapidly changing nature of the world around us.

“It’s been hailed as the most disruptive invention since the smartphone after demonstrating remarkable capability for a range of tasks that required human execution only two years prior,” it stated.

Ed Stanley, Morgan Stanley’s head of European thematic research, believes factors such as demographics and decarbonization are helping to drive the rapid changes.

He pointed out this was fuelled by the search for solutions to power needs, the effects of increasing global longevity, and a reskilled workforce for the future.

“This could spur serious innovation in key areas that lead to new products and markets, especially as more advanced AI is deployed,” he explained.

AI Is Changing The Landscape

The rise of artificial intelligence (AI) has changed the technology landscape over the past couple of years, and this is expected to continue.

Susannah Streeter at Hargreaves Lansdown sees AI as one of the “most exciting and fast-moving sectors” and believes it will continue offering opportunities for investors.

However, she also acknowledged this is a developing technology and the scale of future demand will be hard to forecast.

“The huge sums needed to be plowed in to keep up with the tech pack are also eye-watering, and companies will need to show benefits are coming thick and fast to account for splashing so much cash,” Streeter said.

She predicted there was likely to be a bumpy road ahead for AI and warned that some promises might not live up to their hype.

“It’s important to look for companies with real-world applications and a proven track record and keep an eye on emerging regulatory and supply chain trends,” she added.

Ongoing Investment

US investment in ICT has powered ahead of other advanced economies, according to an analysis by Oxford Economics.

In a report, Alexander Harvey, an assistant economist at the firm, illustrated how the amounts committed to this area changed over the last couple of decades.

“In 2000, the US and the eurozone invested an equal share of their national income in ICT equipment, in real terms,” he wrote. “Since then, the US has surged ahead of Europe and even overtaken Japan, which led the developed world on this front for decades.”

Harvey also gave an upbeat assessment of future prospects.

“The US tech sector will continue to lead global innovation, with the impact of new technologies, especially AI, driving the demand for tech investment and producing a larger uplift to US productivity than in other advanced economies,” he added.

Investor Enthusiasm

According to Russ Mould, investment director at AJ Bell, investors seem as “bedazzled as ever” by the Magnificent Seven – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.

He pointed out that the average 65% gain across the septet in 2024 to the middle of December left them with an aggregate market capitalization of $18 trillion, or 35% of the S&P 500.

“That powerful performance, in turn, means the S&P 500 represents 63% of the FTSE All-World’s market valuation, a level that exceeds even the high seen at the peak of the technology, media and telecoms bubble in 2000,” Mould said.

However, he also acknowledged that recent history suggested that economic factors can destabilize even established giants.

“The share price and profit wobbles of 2022 showed that the Magnificent Seven are not entirely immune to the economic cycle, so an unexpected recession could be one challenge,” he said.

Sustained inflation, meanwhile, could be another if it keeps rates higher than expected and boosts nominal growth from downtrodden cyclicals and value stocks.

“Only a perfect middle path may do to justify their lofty valuations, let alone sustain further upside,” he added.

Questions Over Valuations

Of course, there’s no such thing as a guaranteed route to riches and the looming concern for investors is likely to be how far stock prices have risen.

Richard Hunter, head of markets at interactive investor, believes any caution is due to concerns about whether existing AI incumbents can match ever-rising expectations.

He told Techopedia: “Valuations are currently rich, although the main AI beneficiaries have continued to confound doubters with revenue and profit figures which have propelled several mega-cap tech stocks, most notably the current market darling Nvidia.”

However, Hunter remains generally optimistic about the coming months, albeit with the caveat that leading tech firms will be under pressure to continue delivering on their earnings.

“More broadly, big tech is expected to continue to top estimates over the coming year, which, of course, comes with some danger should any number of those companies fail to meet expectations,” Hunter added.

The Trump Effect

It’s unclear what Donald Trump’s victory in the US Presidential Election will mean for technology companies until policies are introduced.

However, social media giant Meta has already demonstrated its wish to build bridges with the incoming administration, according to Russ Mould, AJ Bell’s investment director.

He highlighted the appointment of Dana White, the inspirational chief executive of the Ultimate Fighting Championship – and prominent Trump supporter – to the Meta board as an example.

“Trump has given Meta the odd body slam in the past – accusing its Facebook platform of censoring right-wing contributions – and Meta clearly sees the importance of making nice with the president-elect,” Mould said.

Mould pointed out that this wasn’t the only shake-up to have taken place.

“This follows the exit of former UK deputy prime minister Nick Clegg as global affairs chief, to be replaced by prominent Republican Joel Kaplan, and Mark Zuckerberg dining with and publicly congratulating Trump in the wake of his election victory,” he added.

“Meta clearly sees the importance of a good relationship with Trump as it looks to navigate potential regulatory pressures.”

Biggest Winners 2025

So, what are the technology stocks to watch? Which ones are likely to see their share prices soar in 2025 on the back of new products and technologies?

Here, we take a look at the tech stock predictions of analysts to find out which companies look best placed for the coming year.

Nvidia

This company has certainly been the big winner when it comes to the AI-fuelled revolution that we’ve been seeing over the past few years.

Jensen Huang, its founder and chief executive, told delegates at the CES 2025 tech conference in Las Vegas that AI was advancing at an incredible pace.

At the same time, he unveiled the company’s latest products and innovations that he believes will help drive the development of physical AI.

Dan Ives, a managing director and tech analyst at Wedbush Securities, told CNN International that it was the most important CES in decades. It celebrated the early stages of the fourth industrial revolution, which is led by Nvidia.

Great to be on @cnni with @jchatterleyCNN discussing Nvidia and the AI Revolution being led by the Godfather of AI Jensen with @CES a major showcase moment for the technology world and AI 🔥🏆🍿🐂🌎📍📺👇 https://t.co/VyxmIWy3FY

— Dan Ives (@DivesTech) January 8, 2025

Microsoft

All but two of those analysts currently have ‘buy’ recommendations in place, while the remaining two see MSFT stock as a ‘hold.’

According to Susannah Streeter at Hargreaves Lansdown, Microsoft has “planted itself in the center of the AI revolution,” and shoots of growth from AI are sprouting fast in all directions.

“Given the direction of travel, revenues from its cloud computing arm Azure, which helps other companies build out the capacity to use AI tools, are coming in thick and fast at an impressive 34% click in the last quarter,” she said. “Growth is set to ease off a little, but it will still be on an enviable trajectory.”

Other Contenders Worth A Look

Dan Romanoff, senior equity analyst at Morningstar, has had a $200 fair value estimate on the stock since the start of November 2024.

“Amazon continues to drive efficiencies throughout its network, which helps lower costs, improve delivery speeds, and ultimately drives increased purchases by Prime members,” he wrote.

Biggest Losers 2025

Numerous factors should be taken into consideration when examining the tech stock outlook, and one of those is the views of stock market analysts.

So, which companies do they expect to struggle with their share prices over the next 12 months, and at what level is their stock likely to be trading by early 2026?

Tesla

The downbeat assessment follows the company’s announcement in early January that it had suffered its first decline in annual deliveries.

In a statement, it noted that 1.79 million vehicles had been handed over in 2024, compared to 1.80 million in the previous year.

The disappointing news has fuelled a 4.13% fall in the TSLA stock price to $394.94 from the start of the year to the close on January 8, 2025.

However, Seth Goldstein, a strategist at Morningstar, has a fair value estimate of just $210 on the company, which is significantly below the most recent closing price.

“We view shares as overvalued, with the stock trading more than 80% above our fair value estimate and in 1-star territory,” he wrote.

Palantir

However, this could get even worse if the consensus view of analysts compiled by MarketBeat is correct and the stock falls a further 40% to $42.12 over the coming year.

The problem is that shares are viewed as overvalued after last year’s hikes despite the company having enjoyed a spike in demand for its AI-powered solutions.

Palantir’s growth prospects are tied to how well it can continue expanding its customer base, while navigating the regulatory backdrop, warned Susannah Streeter at Hargreaves Lansdown.

She said: “With the technology evolving so fast, there are some challenges ahead here. Expectations, however, are high, so there is little room for missteps given the high valuation.”

Other Potential Fallers

Despite the widespread enthusiasm for tech stocks, there are plenty of household names whose share prices could fall over the next 12 months.

William Kerwin, equity analyst at Morningstar, believes Apple is overvalued. He currently has a fair value estimate of just $200 on the stock.

In a report, he suggested market concerns about the company focused on the fact it’s “prone to consumer spending and preferences,” which opens the firm up to disruption.

He also pointed out that Apple’s supply chain is highly concentrated in China and Taiwan, while the company comes under the gaze of regulators.

The Bottom Line

Technology is a hugely important sector for investors, and no one can deny it offers the potential for blockbuster returns over the next few years.

The advancements we see on a regular basis are transforming every industry, from car manufacturing to the provision of healthcare.

AI, in particular, has introduced us to groundbreaking technology that’s making life easier and more interesting for millions of people.

However, the big question facing investors is whether the stocks at the heart of these developments are becoming overvalued.

That’s why it’s important to carry out your own research into stocks and make sure they align with your own investment objectives and attitude to risk.

FAQs