Despite risks from the Israel-Hamas conflict, U.S. Treasury Secretary Janet Yellen’s expectation of a soft landing for the country’s economy bodes well for the stock market. Driven by a resilient labor market and moderated wage pressure, this promises favorable conditions for businesses and investors. A strong labor market, consumer spending and controlled inflation will boost investors confidence and contribute to potential stock market growth. This outlook underscores the importance of stability and measured growth in fostering a robust and resilient economic environment. These three tech stocks to buy will benefit from the economic environment through 2025 and beyond as they are poised for long-term growth.
Li Auto (LI)
Li Auto (NASDAQ:LI) is a Chinese producer and distributor of plug-in hybrid electric vehicles. It currently sells three main vehicles: the LV family-sized SUV, and the L8 and L9 crossover SUVs.
LI stock is up 63.49% YTD and has been maintaining its spectacular growth. The company’s revenue has been outstanding. Revenue of $28.65 billion grew 228.11% YoY and beat analyst expectations by 5.14%. A diluted EPS of $2.18 grew 440.63% YoY which beat analyst expectations by 84.77%. Its strong financial growth is apparent in its 8.00% net profit margin and net income of $2.29 billion.
Li Auto’s competitive advantage in the Chinese EV market lies in its impressive production ramp-up. Li Auto’s deliveries surged by 177% in 2021, and increased by 47% in 2022, totalling 133,246 vehicles. Despite supply chain challenges, including shifting consumer demand and environmental regulations, Li Auto achieved a remarkable 66% year-over-year delivery growth in Q1 2023.
Notably, while its competitor, Nio (NYSE:NIO), faced a challenging first quarter that ended with a narrow vehicle margin of just 5.1%, Li Auto maintained a robust vehicle margin of 19.8%. This underscores the company’s ability to navigate industry challenges and maintain profitability in a competitive landscape.
Yahoo! Finance reports 23 analysts having a 12-month mean price target of $53.04 on LI stock, with the range spanning from as low as $34.99 to as high as $73.08. LI stock should continue to grow as one of the more fascinating tech stocks to buy in the long term.
SoFi Technologies (SOFI)
SoFi Technologies (NASDAQ:SOFI) is an online personal finance company that offers financial services such as borrowing, saving and investing.
SOFI stock is up over 80% YTD, trading at $8.12. Yahoo! Finance analysts forecast a price target ranging from $8.00 to $16.00, reflecting an upside of 0% to 100%. Additionally, analysts estimate a growth of 120% in the next year.
SoFi’s market capitalization increased from $4.28 billion in September 2022 to $7.77 billion in 2023, increasing investor interest. Institutional holdings represent 35.51% of SoFi’s shares, indicating confidence among professional investors. Additionally, the company’s 52-week change of 64.57% outpaces the S&P 500’s 52-week change of 21.84%.
SoFi positioned itself as an attractive option for younger millennial and Gen Z bank users. This is a promising accomplishment, as Gen Z is the largest group of investors looking to invest more despite inflation. SoFi’s appeal lies in its low fees, competitive rates and user-friendly apps. With a national bank charter, the company can engage with younger consumers as a legitimate financial institution. They also offer a wide range of value-added services that should draw more youthful bankers and their capital.
SoFi Technologies’ appeal to younger generations, positions it for substantial growth in 2025. Particularly, with a focus on attracting younger consumers and offering value-added services, SOFI presents an attractive investment opportunity in tech stocks to buy.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is a world-renowned American-based technology corporation focused on the production of computer graphics cards.
NVIDIA boasts a 221% YTD stock growth, currently priced at $460.01. Yahoo! Finance reports 45 analysts having a 1-year mean price target of $634.17, with the range spanning from as low as $439.00 to as high as $1,100.00.
At the end of the current January 2024 FY, NVIDIA is set to bring in $52 billion in revenue. That’s close to twice the $27 billion in revenue cultivated in the previous fiscal year. Current shareholders have earned roughly a 38% CAGR over the past 5 years and are expected to earn upwards of 44% CAGR in the next 5 years.
NVIDIA’s impressive growth can be directly attributed to the company’s strong leadership in AI technology, as exemplified by its cutting-edge products such as GPUs and deep learning platforms. This dominance extends across critical industries such as gaming, data centers and autonomous vehicles. The company’s commitment to innovation ensures its status as a preeminent and highly profitable entity within its industries. NVIDIA’s stock value is sure to trend upward, making it an attractive investment option for those seeking to benefit from the company’s consistent and robust performance. Its cutting edge product offerings are exploding in growth, securing NVDA’s place among the tech stocks to buy.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
