Learn about leading IT companies and stocks of the IT sector. We present the best stocks to buy, including volatile ones that may significantly boost your investment returns.
The IT industry has long ceased to be a niche. Today, it is one of the drivers of the global economy. IT sector stocks attract investors worldwide with their growth potential, innovation, and high liquidity. Volatility is also an integral part of the game. In this article, we will examine which IT companies deserve attention in 2025, which IT sector stocks look promising, and we will highlight the best stocks to buy, including volatile names that may deliver high returns.
Reasons to invest in IT companies in 2025
The world continues to shift rapidly toward the digital plane. Artificial intelligence, cloud computing, cybersecurity, and quantum technologies form the foundation of the future economy. IT companies hold key positions in these areas and, as a result, attract investor interest.
Main advantages of the IT sector:
- Growth rates are higher than those in most traditional industries.
- Global scale — most companies operate not only in the USA but around the world.
- Flexibility and innovation, which allow for rapid adaptation to market changes.
Analysis of key IT companies
Apple Inc. (AAPL)
Apple Inc. remains a leader in the technology sector. In 2025, the company has been actively investing in new technologies. These include wearables, augmented reality (AR) with the Vision Pro product, and the development of in‑house chips. A key growth factor is business diversification. Revenue from services such as Apple Music, iCloud, and Apple TV+ exceeded $100 billion over the past 12 months.
Reasons to invest:
1. Strong brand and loyal user base. Apple does not just sell devices. It builds a unique ecosystem that keeps consumers loyal. Apple products are part of daily life for millions of users worldwide.
2. Growing services segment. Services revenue continues to rise. This reduces the company’s reliance on hardware sales. Services such as Apple Music, Apple TV+, and iCloud are important sources of steady income.
3. Regular buybacks and dividends. Apple buys back shares and pays dividends. Buybacks support share value and earnings per share.
Outlook and risks:
Apple faces smartphone competition, particularly from Chinese manufacturers. Risks also include dependence on global supply chains and increased regulatory scrutiny. These factors could affect the business.
Microsoft Corporation (MSFT)
Microsoft remains a leader in technology, especially in cloud solutions. In 2025, the company significantly strengthened its cloud market position. Azure ranks second by market share, behind Amazon Web Services (AWS). Azure’s innovations and its ability to meet business needs support steady growth. As digital transformation progresses, more companies move to the cloud. This increases demand for Microsoft services.
Microsoft is also embedding artificial intelligence into its products. A major step is the integration of Copilot, an AI assistant, into Office 365. This enhancement boosts user productivity and creates new business opportunities. Copilot simplifies data processing, improves communication, and automates routine tasks. These features make Microsoft products more attractive to enterprises worldwide.
Reasons to invest:
1. Stable cash flows. Microsoft shows consistent financial results and strong cash flow from cloud services, corporate solutions, and products such as Office 365 and Windows. This stability enables sustained investment in innovation and supports long‑term growth.
2. AI integration into enterprise services. AI features in Microsoft’s corporate offerings increase their value to businesses. Tools like Copilot help automate processes, raise efficiency, and reduce costs.
3. Active cloud expansion. The growth of Azure and the broader shift to cloud technologies provide Microsoft with long‑term growth prospects. Cloud platforms are becoming foundational for many enterprises, and Microsoft continues to expand and improve its cloud services.
NVIDIA Corporation (NVDA)
NVIDIA continues to hold a leading position in graphics processors (GPUs) and artificial intelligence (AI). The company became one of the main beneficiaries of the technological revolution driven by rapid AI adoption and high‑performance chips. In 2024, its revenue rose by 80% due to a large increase in demand for its products, especially in AI and the computing power required to process big data.
NVIDIA leads the market for chips used in AI and machine learning. Its position makes the company a key player in cloud computing, deep learning, and data processing. Its powerful GPUs are widely used in data centers that require vast computing resources for processing and analyzing large volumes of information.
NVIDIA also participates actively in the development of supercomputers and autonomous systems, including self‑driving cars and robots. These technologies are growing in demand and open new growth opportunities for the company. The development of technologies for autonomous vehicles and hybrid computing makes NVIDIA attractive for long‑term investors who back digital transformation.
Advantages for the investor:
1. Leadership in AI chips. NVIDIA remains a primary supplier of chips for AI, machine learning, and data processing. Its products are in strong demand in data centers, supporting future revenue growth.
2. Growth of data centers. Rising needs for big data processing and cloud computing make data centers a critical infrastructure component. NVIDIA GPUs play a central role in this trend, sustaining demand for the company’s products.
3. Involvement in supercomputers and autonomous systems. NVIDIA invests in supercomputing capabilities used in scientific research, healthcare, and other advanced fields. Its work on autonomous transport systems also creates further growth potential.
Amazon (AMZN)
Amazon remains the undisputed leader in e‑commerce. In recent years, the company’s primary growth driver has been its cloud division, Amazon Web Services (AWS). In 2025, AWS continues to show steady growth as businesses worldwide adopt cloud solutions. Cloud technology is now a core profit source for Amazon, delivering high margins and regular cash flow.
In addition to cloud services, Amazon invests heavily in logistics automation. The company deploys robots, drones, and AI systems in delivery processes. These investments reduce costs, increase efficiency, and lower dependence on external suppliers. The resulting infrastructure is more resilient to disruptions.
Amazon is also expanding in emerging markets, including India, Latin America, and Southeast Asia. Growing internet usage in these regions creates significant opportunities to scale the business and increase revenue.
What makes Amazon attractive:
- Stable growth in the AWS cloud division
- Active investments in automation and logistics
- Expansion into high‑potential markets
Alphabet Inc. (GOOGL)
Alphabet, the parent company of Google, is investing heavily in advanced technologies and expanding its presence in key segments of the digital economy. In 2025, the company focuses on artificial intelligence, in particular the Gemini model, which is being integrated into Google products, including Search and office applications. This integration opens new monetization channels and strengthens the company’s competitive advantages.
Google Cloud is becoming an increasingly important revenue source. It shows steady growth driven by corporate clients. Cloud services are evolving toward security, analytics, and AI solutions for business, which raises their demand.
Alphabet also advances quantum computing and autonomous technologies through subsidiaries such as Waymo.
Reasons to buy:
- Strong positions in AI and advanced research
- Effective monetization of Search using artificial intelligence
- Rapid expansion of the cloud services segment
Key players of volatile IT stocks
Palantir Technologies (PLTR)
Palantir develops powerful analytics platforms that help government and commercial organizations process big data and make data-driven decisions. The company’s products are used in defense, intelligence, healthcare, finance, and industry. Key clients include the US Department of Defense and EU agencies. In 2024–2025, Palantir signed and renewed several large government contracts, which support stable cash flows.
Reasons to invest:
- High margin: the subscription business model allows Palantir to generate stable revenue with low variable costs. Operating margin exceeds 30%, which makes the company attractive to long-term investors.
- Growth in the commercial segment: beyond government work, Palantir is expanding in private business, with clients such as Uber, Boeing, and Morgan Stanley.
- AI analytics: active adoption of AI technologies improves the competitiveness of Palantir platforms by increasing the accuracy and speed of analytical outputs.
Risks:
- Dependence on government contracts and possible budget cuts
- Competition from large players such as Snowflake, Google Cloud, and Microsoft
- Reputational risks and data privacy concerns
Snowflake Inc. (SNOW)
Snowflake is a leading company in the field of cloud technologies, providing a platform for data storage and analysis. The company offers a flexible Software-as-a-Service (SaaS) solution that allows organizations to consolidate, process, and scale data in the cloud. A key advantage is its architecture, which delivers high performance at optimal cost.
In 2024, Snowflake increased its revenue by more than 30%, a result of the growing demand for cloud analytics solutions. The company is actively expanding within the corporate segment. Its clients include giants like Netflix, Adobe, and Capital One. This confirms trust in its product and forms a stable subscriber base.
Snowflake is developing partnerships with the largest cloud platforms (Amazon Web Services, Microsoft Azure, Google Cloud), which strengthen its ecosystem. Integration with artificial intelligence (AI) services is also underway, expanding the platform's areas of application.
Risks:
- Intense competition from Amazon, Google, and Microsoft.
- Dependence on large clients.
- Potential decline in demand in the event of economic difficulties.
Nevertheless, Snowflake remains an attractive stock for investors focused on growth in the cloud technology sector.
Unity Software Inc. (U)
Unity is one of the world's leading developers of game engines and interactive 3D technologies. The company provides a platform upon which thousands of games, applications, and simulations are created—from mobile games to architectural visualizations and training simulators for medicine and aviation. Unity occupies a unique position at the intersection of gaming technology, artificial intelligence, and augmented reality.
Although Unity’s stock remained under pressure in 2022–2023, a reversal was evident in 2024 and early 2025. This is linked to the strengthening of the company’s position in the AR/VR market and a renewed interest in metaverse projects. Contracts with giants like Meta (the Quest ecosystem and Horizon) and Microsoft, which uses Unity solutions for corporate simulators and HoloLens, have been particularly significant.
Reasons to invest:
- Metaverse and immersive technologies: Unity is a primary tool for creating digital worlds. As the largest players again place bets on virtual spaces, Unity could become a key contractor for technology and entertainment companies.
- Expansion beyond gaming: The platform is actively used in architecture, the film industry (animation and VFX), automotive design, and even the defense sector. This makes the business more resilient to fluctuations in the gaming segment.
- AI animation and generative technologies: Unity integrates machine learning tools to automate animation, object behavior, and content generation. This reduces costs and accelerates development, opening new opportunities for studios and developers.
Risks and challenges:
- High competition from Unreal Engine (Epic Games), especially in the AAA gaming and film segments.
- Rising costs: Developing new directions requires significant investment, impacting profitability.
- Monetization: The transition to new subscription models has drawn criticism from indie developers and temporarily reduced audience loyalty.
Nevertheless, Unity's strategic vector is aimed at long-term growth. If AR/VR technologies gain mass adoption and the metaverse enters a new phase of development, Unity will be among the primary beneficiaries of this technological transformation.
Coinbase Global Inc. (COIN)
Coinbase is one of the largest cryptocurrency exchanges in the world, offering a simple and intuitive interface that has attracted both retail investors and institutional clients. The company acts as a sort of "entry point" into the crypto world for millions of users. In an environment where interest in digital assets is gaining momentum again, Coinbase remains at the center of key trends.
Since the beginning of 2025, COIN stock has demonstrated significant volatility but continues to follow an upward trend thanks to a number of factors. One of the main growth drivers is the increased demand for Bitcoin through new financial instruments, including Bitcoin ETFs. The arrival of these products in the US market has led to a rise in trading activity, from which Coinbase earns directly through fees.
The company is also expanding its range of services: institutional custodial services, staking, exchange-traded derivatives, and the launch of its own blockchain infrastructure (Base) make the business more diversified and resilient to declines in spot trading volume.
Risks and opportunities:
- High crypto market volatility: Even short-term declines in the price of Bitcoin and Ethereum can lead to reduced trading activity and revenue for Coinbase.
- Regulatory risks: The company is under constant scrutiny from the SEC and other regulators, and the outcome of legal proceedings could affect its business model.
- Nonetheless, COIN demonstrates high profitability (operating margin exceeding 35% in some quarters) and possesses significant liquidity, allowing it to confidently navigate periods of instability.
Thus, Coinbase remains an attractive, though volatile, investment in the fintech and crypto-economy segment. This stock is suitable for investors willing to accept risk for potentially high returns, particularly within a momentum or growth strategy.
How to choose best stocks to buy
Investing in the IT sector requires a comprehensive approach. The high-tech sector is extremely dynamic: some companies experience rapid growth driven by innovation, while others lose market share due to competition and outdated technology. Therefore, selecting the best stocks to buy is not a guessing game, but the result of systematic analysis. Let’s examine the key parameters to consider when building an investment portfolio.
Financial reports — stability, profitability, and margins
Financial stability is one of the most critical factors in evaluating any company. When selecting stocks to buy, it is important to look for steady revenue growth, positive operating and net income, and strong profit margins. For example, Microsoft demonstrates multi-year profit growth, high profitability (operating margin over 40%), and consistent free cash flow, making it a reliable investment even during periods of market volatility.
Market position — leadership, innovation, and brand recognition
IT companies with strong competitive advantages are generally less susceptible to market fluctuations.
When evaluating, consider:
- Market share in key segments,
- Growth rates compared to competitors,
- Ownership of patents and proprietary technologies,
- Brand strength and user loyalty.
For instance, Apple remains one of the most influential players in the consumer electronics market due to its integrated product ecosystem and exceptionally high customer retention.
Technological potential — participation in high-growth trends
Pay attention to the areas in which a company operates:
- Development and implementation of artificial intelligence (AI),
- Cloud solutions and Software-as-a-Service (SaaS),
- Cybersecurity and big data,
- Subscription-based business models (recurring revenue).
Companies like Snowflake and Palantir are actively developing cloud platforms for data analytics and machine learning, positioning them as potential leaders in their respective niches.
Price assessment — a reasonable price for future
Even the most promising companies can be overvalued. To assess fair value, compare key financial ratios:
- Price-to-Earnings (P/E) — for mature companies with stable profits,
- Enterprise Value to EBITDA (EV/EBITDA) — for a more accurate consideration of debt,
- Price-to-Sales (P/S) — particularly useful for fast-growing but currently unprofitable companies.
It is essential to compare a company not only to the broader sector but also to its direct competitors. For example, Snowflake has one of the highest P/E ratios (120x), which is justified by its aggressive growth, but this also increases risks in the event of a market correction.
These data points will help investors quickly orient themselves to fundamental metrics. However, it is important to remember that the final decision should always consider industry trends, financial goals, and the individual investor’s risk tolerance.
Investment strategies for IT stocks
Depending on your risk tolerance, investment goals, and time horizon, there are several established strategies that can be effectively applied when investing in IT stocks. Below, we will outline the most popular approaches and provide recommendations for their application within the context of the 2025 market.
1. Buy & Hold Strategy
This classic long-term strategy involves purchasing high-quality stocks and holding them in a portfolio for many years. It is suitable for risk-averse investors focused on steady capital appreciation. Companies like Apple, Microsoft, and Google (Alphabet) are characterized by high market capitalization, stable financials, and regular dividend payments. While such stocks may not exhibit explosive growth, they are reliable and less susceptible to sharp fluctuations.
Advantages:
- Low transaction costs
- Protection from short-term volatility
- Compounding returns through dividend reinvestment
Disadvantages:
- Less flexibility
- Potential for missed opportunities during market cycle shifts
2. Growth Investing
Investors focused on breakthrough technologies and rapidly expanding companies often choose a growth strategy. Companies like Snowflake, NVIDIA, and Palantir may not be profitable by traditional metrics but demonstrate rapid revenue growth and market share expansion.
When to use:
- If you are comfortable with high volatility
- If you have a long investment horizon (5+ years)
- If you are targeting maximum returns
Key focus areas: Revenue growth rates, burn rate, technological leadership, and the scalability of the company’s solutions.
3. Momentum Trading
This approach is suited for active investors and traders seeking to capitalize on short-term market movements. Stocks of companies like Coinbase or Unity often react strongly to news, earnings reports, or external events (such as a Bitcoin rally or new product launches).
How to implement:
- Analyze charts, patterns, and volume levels
- Establish clear stop-loss orders
- Monitor a live news feed
Risks: High volatility can lead to rapid capital loss without a strict trading discipline.
4. Sector-specific diversification
The IT sector is diverse, ranging from blue-chip stocks to startups, and from cloud solutions to metaverse technologies. By combining companies with different risk levels and business types, you can reduce overall portfolio volatility and increase the chances of stable returns.
Sample portfolio structure:
- 40%– stable companies (Apple, Microsoft)
- 30%– growing companies (NVIDIA, Snowflake)
- 20% – volatile stocks (Palantir, Coinbase)
- 10% – innovative startups (Unity, CrowdStrike)
Conclusion
Your choice of strategy should align with your personality, experience, and financial objectives. Sometimes, a combined approach yields better results than relying on a single method. The key is to maintain discipline, conduct regular portfolio reviews, and remain adaptable to market changes.
IT companies continue to attract investors by offering both stability and the potential for high returns. When investing in IT stocks, particularly volatile ones, it is essential to combine fundamental analysis with an understanding of market trends.
The best stocks to buy are those that fit your strategy and goals. Diligently analyze financial reports, monitor technological breakthroughs, and never overlook the inherent risks.
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