Technology Sector Overview - The technology sector includes some of the market's best-performing growth stocks, with the Nasdaq Composite index more than doubling in the last five years [1] - Artificial intelligence (AI) is attracting significant interest from Fortune 500 corporations, creating attractive opportunities for long-term investors [1] Advanced Micro Devices (AMD) - Wall Street analysts see substantial upside potential for AMD, with an average 12-month price target of $183, representing a 52% increase from the current $120 share price [2][3] - AMD's data center business revenue surged 122% year-over-year in Q3 to $3.5 billion, driven by the growing use of AI software and demand for powerful GPUs [4] - AMD estimates the market for AI accelerators could reach $500 billion by 2028, with major data center operators like Microsoft and Meta Platforms as strategic partners [4] - AMD is gaining market share in CPUs from Intel, with its client segment revenue growing 29% year-over-year in Q3 [5] - Analysts expect AMD's total revenue to grow 27% in 2025 to $32 billion, with earnings projected to increase 54% due to higher margins from advanced AI chip sales [6] - AMD shares trade at a forward price-to-earnings ratio of 24, with strong earnings growth potentially driving the stock toward Wall Street's price target [6] Monday.com (MNDY) - Wall Street analysts have an average price target of $319 for Monday.com, 35% above the recent $235 share price [7][8] - Monday.com's revenue has grown from $161 million in 2020 to $906 million on a trailing-12-month basis, driven by its cloud-based work management software platform [7] - The company is growing revenue by more than 30% year-over-year and is approaching $1 billion in annual sales, despite competition in the market [8] - Monday.com has seen strong demand for its platform even after a recent price increase, supported by new features like an AI-powered assistant [9] - The company's profitability is improving, with net income reaching nearly $22 million over the last four quarters after reporting losses in recent years [9] - Monday.com's stock trades at a price-to-sales multiple of 13, and analysts expect revenue to rise 26% in 2025, which could drive further stock appreciation [10][11]
2 Tech Stocks Wall Street Thinks Could Soar in 2025