Most profitable IT and technology stocks

Investing in technology companies has traditionally attracted investors due to their potential for rapid expansion and innovation. In 2025, the shares of leading IT companies continue to deliver strong returns, driven by the advancement of artificial intelligence (AI), cloud computing, and other cutting-edge technologies.

In this article, we’ll look at the most profitable stocks in the technology sector, analyze the key factors behind their success, and discuss their future growth prospects.

Why technology companies lead among bullish stocks

Growth stocks are shares of companies that demonstrate faster revenue and profit growth compared to the broader market. These companies typically focus on business expansion, innovation, and capturing new markets rather than paying dividends.

Instead, they reinvest a significant portion of their profits into developing new products, expanding infrastructure, and marketing — enabling them to maintain a dynamic growth pace and attract investors focused on long-term returns.

Technology companies often fall into the category of growth stocks because of their ability to quickly adapt to change and implement advanced technologies. This sector is highly competitive, yet it offers substantial opportunities for expansion and increased market capitalization.

Why tech companies dominate among bullish stocks

1. Innovation and technological advancement
Tech companies consistently invest in research and development, introducing cutting-edge solutions in areas such as artificial intelligence, cloud computing, automation, and cybersecurity. Constant product innovation helps them maintain strong demand and attract new customers.

2. Global demand and digitalization
The expansion of digital technologies and the migration of businesses into the online space are fueling demand for IT products and services. Sectors such as e-commerce, cloud technology, fintech, and artificial intelligence are becoming key growth drivers.

3. High profit margins and scalability
Technology companies often offer digital products and services that can be scaled easily without a significant increase in costs. Unlike traditional manufacturing, they don’t need to build factories or purchase raw materials in large quantities — ensuring high business profitability.

4. Investor appeal
With rapid revenue growth and increasing market capitalization, technology stocks have become some of the most sought-after among investors, especially those with a long-term outlook. Companies that hold leading positions in their segments can deliver share price growth of tens or even hundreds of percent over just a few years.

Nvidia (NVDA): leader in GPUs and artificial intelligence

Nvidia continues to strengthen its position as the leading manufacturer of graphics processing units (GPUs), which are essential for gaming systems, data centers, and artificial intelligence (AI) applications. In 2025, the company has achieved significant progress in several key areas:

• Advancement in AI technologies: Nvidia’s GPUs have become the industry standard for training neural networks and executing complex AI tasks. According to CEO Jensen Huang at the GTC 2025 conference, Nvidia introduced a new generation of AI chips — Blackwell Ultra and Vera Rubin, which deliver a substantial performance boost for AI-driven applications.
• Expansion in data centers: As the demand for cloud computing grows, so does the need for Nvidia’s products. The company projects that by 2028, its data center infrastructure revenue could reach $1 trillion, driven by strong GPU demand from major cloud providers.
• Partnerships with high-tech giants: Nvidia is actively expanding partnerships with major players such as Dell Technologies to develop “AI factories” and modernize enterprise IT systems. Michael Dell, founder and CEO of Dell Technologies, emphasized the transformative potential of AI and highlighted the company’s close collaboration with Nvidia in this field.
• Investments in US manufacturing: Responding to global supply chain shifts, Nvidia plans to invest hundreds of billions of dollars in chip development and relocate part of its production from Asia to the United States. This strategy aims to reduce dependence on foreign suppliers and strengthen Nvidia’s foothold in the American market.

Thanks to these initiatives, Nvidia not only maintains its leadership in AI and cloud computing but also lays the foundation for continued growth and innovation in the coming years.

Microsoft (MSFT): cloud services and enterprise solutions

Microsoft continues to hold a dominant position in the software and cloud services markets, demonstrating consistent growth and innovation across its product ecosystem. The company’s key growth drivers include:

• Azure cloud platform: Azure remains one of the world’s leading cloud computing platforms, contributing a significant share of Microsoft’s revenue. In the second quarter of fiscal 2025, the Intelligent Cloud division — which includes Azure — generated $25.5 billion, up 19% from the same period last year.
• Integration of artificial intelligence into products: Microsoft is actively embedding AI technologies into its core products such as Office 365 and Dynamics 365, increasing their value for corporate clients. For instance, in Dynamics 365 Sales, AI capabilities now automate lead generation, assess potential clients, and recommend optimal next steps — boosting sales team efficiency.
• Growth in AI-related revenue: Microsoft’s AI-driven business revenue surged 175%, exceeding $13 billion, underscoring the strong demand for the company’s AI solutions and the success of its strategic focus in this area.
• Introduction of copilot in Microsoft 365: Microsoft launched Copilot, an AI-powered assistant integrated into Word, Excel, PowerPoint, and Outlook. Copilot helps users automate routine tasks, generate content, and enhance productivity.
• Infrastructure investment: Microsoft plans to invest $80 billion in expanding its data centers to meet soaring demand for cloud and AI services. However, the company has faced temporary slowdowns due to capacity constraints in its data centers.

Through these initiatives, Microsoft not only retains its leadership in cloud technology but also actively shapes the future of enterprise software by embedding cutting-edge AI capabilities into its products and services.

Alphabet (GOOGL): search technology and online advertising

Alphabet Inc., the parent company of Google, continues to lead in search technology and online advertising. The company’s main growth drivers include:

• Dominance in online advertising: In Q4 2024, Alphabet’s total revenue reached $96.5 billion, with $54 billion coming from search advertising alone.
• Investments in AI and cloud services: In 2025, Alphabet plans to invest $75 billion in artificial intelligence and cloud technologies — a 42% increase compared to the previous year. These investments are aimed at expanding the capabilities of Google Cloud and developing new AI projects.
• Growth in cloud revenue: In Q4 2024, Google Cloud revenue rose 30% year-over-year, reaching $12 billion, reflecting growing demand for the company’s cloud solutions.
• Acquisition in cybersecurity: Alphabet is in talks to acquire cybersecurity startup Wiz for $32 billion, a move that could significantly strengthen its position in cloud security.

Through these strategic steps, Alphabet not only maintains its leadership in search and online advertising but is also expanding rapidly into high-potential sectors such as artificial intelligence and cloud computing.

Apple (AAPL): innovation in consumer electronics

Apple Inc. continues to show confident growth in the consumer electronics market, driven by strong iPhone sales and the rapid expansion of its services segment.

• Strong sales of iPhone 16 and iPhone 16e: In September 2024, Apple launched the iPhone 16, followed by the budget-friendly iPhone 16e in February 2025. Despite its lower price, the iPhone 16e outperformed previous SE models in sales.
• Growth in services revenue: In the first fiscal quarter of 2025, the Apple Services division — which includes the App Store, Apple Music, Apple Pay, and iCloud — generated a record $26.34 billion, accounting for 21.2% of Apple’s total revenue.
• Subscription revenue: In 2024, Apple earned nearly $100 billion from subscription-based services, including iCloud, Apple Music, and Apple TV+. In Q4 2024, service revenue reached a record $26.3 billion, up 14% year over year.
• Challenges in streaming: Despite success in other areas, Apple TV+ remains unprofitable, generating over $1 billion in annual losses. The company cut its content production budget by $500 million, while Apple TV+’s share of total streaming viewership remains below 1%.

Thanks to strong iPhone sales and significant growth in its services business, Apple continues to strengthen its position in the consumer electronics market — despite facing certain challenges in specific segments.

Amazon (AMZN): e-commerce and cloud technologies

Amazon continues to hold a dominant position in global e-commerce and cloud computing, showing consistent growth and ongoing expansion across its services.

• E-commerce leadership: In 2024, Amazon achieved record revenue of $637.96 billion, an 11% increase compared to the previous year. In Q3 2024 alone, Amazon’s revenue reached $158.9 billion, up 11% year over year, while operating profit surged 56% to $17.4 billion. In Europe, Amazon also reported strong results — €39.6 billion in Germany and €36.7 billion in the UK.
• Amazon web services (AWS): AWS remains the company’s primary profit driver. In Q3 2024, AWS revenue grew 19% to $27.5 billion, accounting for 17% of Amazon’s total sales. Notably, AWS contributed 59% of Amazon’s operating profit, highlighting its central role in the company’s financial success. To meet growing demand for cloud and AI solutions, Amazon increased capital expenditures by 81%, investing heavily in AWS infrastructure and artificial intelligence technologies.

With its successful e-commerce strategy and major investments in cloud computing, Amazon continues to strengthen its global presence — offering customers a wide range of products and services and providing investors with stable growth and promising opportunities.

Outlook for technology stocks

The technology sector continues to show strong, sustainable growth driven by several key factors — including the rise of artificial intelligence (AI), the shift to cloud-based solutions, and ongoing innovation in consumer electronics.

Artificial intelligence (AI) development

AI is becoming an integral part of a wide range of products and services, driving demand for related technologies. According to analysts, IT spending is expected to reach $3.6 trillion in 2025 as companies continue to adopt AI. About 30% of large US corporations plan to invest $10 million or more in AI projects — up from 16% in 2024 — signaling a sharp rise in interest and investment in the field.

Shift toward cloud solutions

Businesses are increasingly migrating to cloud platforms, boosting revenue for cloud service providers. Cloud adoption enhances business flexibility, reduces infrastructure costs, and accelerates the development and deployment of new products. Spending on cloud services is projected to continue growing, reflecting the ongoing trend toward digital transformation and operational efficiency.

Innovation in consumer electronics

New devices and enhanced features continue to attract consumers and drive sales. In 2025, widespread adoption of augmented reality (AR) and virtual reality (VR) technologies is expected, opening new horizons for the consumer electronics industry. These technologies are creating new ways for people, companies, and clients to interact — increasing engagement and personalization. Additionally, innovations in wearable devices, such as smartwatches and fitness trackers, remain popular among consumers, supporting strong sales growth in this segment.

In conclusion, the technology sector continues to evolve rapidly, adapting to changing market demands and integrating advanced technologies that shape both business and everyday life. The rise of AI, the shift to cloud computing, and ongoing innovation in consumer electronics remain the key drivers of this dynamic growth.

How to invest in bullish stocks of IT companies

Investing in growth stocks of IT companies can be an excellent way to achieve high returns — especially considering the dynamic expansion of the technology sector. There are several effective strategies for investing in such stocks, each with its own advantages and considerations. Below, we explore the main ways to invest in growth-oriented IT companies.

1. Direct stock purchase: buying shares through a broker account

One of the most common ways to invest is by purchasing individual company stocks. To do this, you’ll need to open a brokerage account, through which you can buy shares of tech giants such as Nvidia, Microsoft, or Apple. By owning individual stocks, investors can benefit from price appreciation — and, in some cases, dividends.

How it works:
Once you’ve opened a brokerage account, you can purchase shares of chosen companies on stock exchanges. This approach allows investors to target specific companies they believe have the strongest growth potential.

Advantages:

• High return potential: Growth stocks can offer substantial profits from sharp price increases.
• Direct control: You decide which companies to invest in and manage your own portfolio.
• Dividends: Some IT companies, such as Microsoft and Apple, pay dividends, providing additional income.

Disadvantages:

• High risk: Stock prices fluctuate, meaning potential losses are possible.
• Need for research: Investors must perform careful analysis to identify companies with solid prospects.

2. Investing in ETFs: funds tracking the technology sector index

If you want to reduce risk and diversify your investments, consider ETFs (Exchange-Traded Funds). These funds include shares of multiple technology companies, allowing you to own a portion of several firms simultaneously. ETFs that track technology indices provide a convenient way to invest in a broad range of IT companies — from global giants to emerging startups.

How it works:
ETFs are traded on stock exchanges and can be purchased through a broker. These funds typically mirror indices that represent key technology sectors such as cloud computing, artificial intelligence, cybersecurity, and more.

Advantages:

• Diversification: You avoid the risk of relying on a single company — losses from one stock can be offset by gains from others.
• Low costs: ETF investing is generally more affordable than buying individual stocks, especially for major indices.
• Stable growth: Investing in a technology-focused ETF allows you to benefit from the sector’s overall growth.

Disadvantages:

• Lower returns: Diversification may reduce potential returns compared to direct investment in a single successful company.
• Passive management: Investors cannot choose which specific companies are included in the fund.

3. Participating in IPOs: investing in companies going public

Another way to invest in IT growth stocks is by participating in Initial Public Offerings (IPOs). An IPO is when a company goes public and sells its shares to investors for the first time. Participating in IPOs offers the opportunity to buy shares at the initial offering price — potentially earning significant profits if the company performs well.

How it works:
IPOs are managed by investment banks, which act as intermediaries between the company and investors. You can apply to purchase shares before they start trading on the stock exchange.

Advantages:

• High profit potential: Shares of successful IPOs can rise sharply after listing.
• Access to promising companies: You can invest early in innovative firms — for example, startups in artificial intelligence or cybersecurity.
• Exclusivity: IPO participation provides access to shares before public trading begins, which can yield high returns.

Disadvantages:

• Uncertainty: After the IPO, stock prices can fluctuate significantly, and performance may not meet expectations.
• High risk: Not all companies succeed after going public — IPO investing carries substantial risk.

Conclusion

Technology stocks remain an attractive investment option in 2025, offering strong potential for high returns — but also carrying certain risks.

Direct stock purchases give investors full control over their portfolios, while ETFs provide diversification and lower risk exposure. IPO participation can offer significant gains but comes with higher uncertainty.

Ultimately, the best investment strategy depends on your goals, risk tolerance, and market knowledge. For those seeking long-term growth and willing to conduct research, direct stock investing or IPOs may be suitable choices. For investors prioritizing lower risk and simplicity, ETFs offer an excellent, balanced option for exposure to the fast-growing IT sector.