Earlier this year, RBC Capital Markets published a report titled “Imagine 2025.” In it, the financial service company imagined the world in six years time. The conclusion? Technology will impact the world, causing disruptions and collisions, which some may view as a challenge. Others, however, will accept this and use this opportunity as a chance to evolve. Tech stocks, in particular, will be the ones to take advantage.
With this conclusion, RBC Capital pinpoints the tech stocks it believes will “outperform over a seven-year time horizon.” Of course, it’s okay to be skeptical of this. After all, the tech sector has faced tough times in the past couple of years. But things change, and these potential changes highlighted by the RBC portfolio are worth being aware of.
Here are four tech stocks forecasted to see significant gains over the next few years.
Tech Stocks in 2025 to Watch Out For
1. Nvidia Corporation
Based in Santa Clara, California, Nvidia (NASDAQ:NVDA) is a graphics chip designer founded by Jensen Huang, Curtis Priem, and Chris Malachowsky in 1993. Despite underperforming over the last six months or so (people even think Nvidia will report a decline in its earnings), Nvidia continues to push the boundaries of the tech sector, making this tech stock’s long-term picture to be very compelling.
While Mark Lipacis, Jefferies analyst, says Nvidia is still “a top play on secular themes,” RBC Capital believes “Nvidia is well ahead of its peers and is continuing to gain traction due primarily to the value of Cuda software.”
It’s not surprising to see Amazon (NASDAQ:AMZN) on this list. Whether it be through acquisitions (remember when it bought Whole Foods in 2017?) or by entering new markets, Amazon, a Seattle company, has proven itself to be a global leader in tech stocks.
RBC Capital explains that “Amazon appears particularly well situated to lead robotics innovations, given its ongoing investment in Kiva logistics robots.” The impact of this investment will likely bring more success to AMZN stock.
Splunk Technology (NASDAQ:SPLK), an American public multinational corporation, produces software that turns machine data into answers. The company is based in San Francisco, California.
In the report, RBC Capital highlights Splunk as a “winner in the big data category.” RBC Capital isn’t the only one optimistic about the company’s future, either. The SPLK stock is a “strong buy” stock, and it has an average analyst price target of $155.
Considered a financial tech stock, RBC Capital believes PayPal’s (NASDAQ:PYPL) “unique assets” enable it “to tap into the long-term global shift to digital commerce.”
Not only that but because the payments company is known for democratizing finance around the world, RBC Capital Markets believes PayPal’s “growing platform of assets will open up the ~2B people around the world who lack financial services.”
Is the Success of These Stocks a Guarantee?
The stock market changes all the time, which means RBC Capitals predictions are not a guarantee. The company is merely taking into consideration recent acquisitions, new products, and current price levels. But, while it’s not a guarantee these tech stocks will succeed over the next few years, the report does give some indication that investors should either keep hold of these four stocks or, at the very least, keep an eye on them moving forward.
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