2 Top Tech Stocks to Buy Before they Soar in the Second Half

Group 1: Market Overview - Wall Street has shown resilience against trade war fears, with the Nasdaq reaching new all-time highs, indicating investor confidence in the U.S. economy and stock market [1] - The Federal Reserve is projected to cut interest rates again in 2025, which may encourage investment in tech stocks that are currently undervalued [2] Group 2: Lumentum (LITE) Analysis - Lumentum designs and manufactures optical and photonic technologies, providing components for telecommunications and advanced manufacturing, and is positioned to benefit from the growth of AI, cloud computing, and 5G [3][4] - Despite a 10% stock increase over the past five years, Lumentum has underperformed compared to the tech sector's 110% growth [4] - Lumentum's revenue growth plateaued after 2019 due to various headwinds, including the discontinuation of shipments to Huawei and overreliance on Apple [5][6] - The company is now experiencing a turnaround, driven by surging AI demand, with a strong earnings performance exceeding EPS estimates by an average of 42% over the last four quarters [9] - Lumentum is projected to grow its revenue by 20% in FY25 and 33% in FY26, with adjusted EPS expected to double in FY25 and FY26 [10] Group 3: HubSpot (HUBS) Analysis - HubSpot has shown significant growth, with revenue increasing from $182 million in 2015 to $2.6 billion last year, yet it trades 30% below its highs [15] - The company is expected to expand its revenue by approximately 16% in 2025 and 2026, reaching $3.51 billion, while adjusted earnings are projected to grow by 15% and 21% respectively [19] - HubSpot's AI-powered CRM solutions are driving growth, and the company has consistently beaten quarterly earnings estimates for five years [19][17] - The stock is currently trading near its long-term moving averages, indicating potential for a breakout [20]