Likewise, investment firm Macquarie expects software stock fundamentals to “remain generally positive in 2025," although "potentially accompanied by bouts of volatility." Related: Bank of America reveals top technology stock pick for 2025 "We expect positive sentiment to persist,

Artificial intelligence (AI) continued to be a major investment theme in 2024, driving tech stocks to record highs as companies continued to pour millions into the emerging technology. With no signs of slowing down,

Myron Xie says TSM stock is the only game in town for AI chips. Nvidia and hyperscalers building their own chips rely heavily on TSMC.

Citing the AlphaWise survey of chief information officers, who often dictate the direction of companies' tech spending plans, Weiss sees overall spending on software rising by 3.8% from last year in 2025, compared to a 3.5% growth rate in 2024.

A semiconductor analyst sees a continued focus on AI growth for the sector in 2025 and highlights some winners and stocks to avoid.

For investors, both Amazon and Micron Technology offer a promising pathway to long-term returns, capitalizing on key trends shaping the future.