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4 tech stocks to watch
Despite sell-offs at the start of 2025, tech remains the largest and fastest-growing sector in the world economy. Technological innovation powers almost everything we touch and underpins growth in disparate sectors, from healthcare to transportation. In this article, we’re looking beyond the powerhouses and brand names, exploring some potentially undervalued growth stocks with exciting potential.
In this article, discover:
- Which pandemic-era growth stock might be about to go big again
- Why subscriptions could be the key to a legacy network giant outperforming the S&P 500
- The website that went public in 2024 that’s now facing off with Google in the battle for AI visibility
- Why artificial intelligence isn’t the only technology to watch closely
Palantir - are military defence stocks a good investment?
What it does
A fascinating and controversial firm due to its close ties with the U.S government, Palantir’s software products serve the intelligence, national security, defence, SaaS, data analytics and AI sectors. Technology created by Palantir has been credited with a range of achievements, from optimising the distribution of vaccines during the COVID-19 pandemic to assisting in the capture of Osama bin Laden[1].
Why it matters
Over the past year, Palantir’s stock price has soared. As of July 2025, shares are worth almost five times as much[2] as they were 12 months before. Despite winning substantial government contracts in that time, much of Palantir’s recent growth has been credited to its involvement in AI and specifically to the growing adoption of its Artificial Intelligence Platform (AIP).
What to watch
Palantir hit an all-time high in June 2025[3]. And analysts broadly agree on what is behind Palantir’s upward trajectory: the AI boom.
Where they differ, however, is whether that growth will continue. Many believe a correction is coming, saying the stock climbed too high, too fast. Others go as far as saying Palantir’s “bull run” has “defied logic”[4]. With a 52-week high to July 2025 of $149.58[5], could it be overvalued?
It’s a stock to watch carefully over the coming 12 months. Optimistic voices say there’s plenty of headroom and Palantir has significant room to keep growing. And whether you’re bullish or bearish on Palantir’s outlook, you can take a position without owning the stock.
Learn how savvy traders use leverage to benefit from falling and rising stock prices in our guide to spread betting.
Cisco Systems - a defensive buy perfectly placed for data centre demand
What it does
Think of Cisco as an infrastructure provider for the tech industry. It manufactures networking hardware, telecommunications equipment and software. Analysts are optimistic about both its stability in a turbulent economy and its future growth, seeing it as well-positioned to benefit from growing demand for data centres.
Cisco was founded in 1984. It’s part of the tech industry old guard. Before Silicon Valley exploded to life with consumer tech brands like Facebook, Google and Netflix, firms like Hewlett Packard and Cisco Systems were seen as the defining figures of the sector.
Why it matters
Over the past year, Cisco shares have outperformed the S&P 500, and analysts see it as a relatively steady bet for the long term, with some potentially impressive growth in the short term.
A Deutsche Bank report noted that just over half of Cisco’s revenue comes from subscriptions[6], which is always good news for investors looking for signs of revenue health. It also boasts something rather rare in the tech sector, an almost fully owned supply chain. It is a manufacturing powerhouse, although a portion of that supply chain is based in India, potentially exposing it to tariff headwinds.
What to watch
As a defensive buy, Cisco could be attractive to long-term tech investors looking for stability while potentially grabbing some AI-driven growth. With a modest dividend yield of around 2.4%[7], performance is comparable with other established manufacturers like IBM and Texas Instruments[8].
For more in-depth information about Cisco you can visit our guide here
Zoom - is the stock fairly valued?
What it does
A notable clutch of companies saw their stock peak during the pandemic before rapidly dropping off as life normalised; ASOS, Ocado, Peloton and Zoom were among them. Analysts and investors took this as a lesson in being cautious about highflyers.
Why it matters
Zoom could be to tech what Moderna is to healthcare: a brand that made its name during the COVID-19 pandemic that is currently undergoing a rebirth. While Moderna explores new applications for its mRNA platform, Zoom is busily pivoting to become an AI productivity leader.
Its AI Companion productivity and skills development platform is making headlines as the firm focuses its growth efforts on enterprise technology, and the financials look good.
What to watch
As of May 2025, enterprise sales represented approximately 60% of total revenue and had grown around 6% year on year[9]. Zoom’s future as an all-singing, all-dancing AI-powered tech stack with immense brand affinity could see it eventually take on Microsoft Teams. And if you remember Skype and its apparently unbreakable hold on the video conferencing market, you’ll understand why that doesn’t sound so implausible.
For more in-depth information about Zoom you can visit our guide here
Reddit - are smart tech investors buying the dip or spooked by AI threat?
What it does
Reddit styles itself as the ‘heart of the Internet’. It’s essentially a social news aggregation platform. If you believe what the media says, tech investors are fixated on AI and data centres. So why would anyone think about investing in a humble website?
Why it matters
Reddit went public in March 2024, and its share price has been on a rollercoaster journey ever since. As of July 2025, the stock has seen a 52-week high of $230.41 and a low of $49.13. It’s currently around $144 and analysts can’t agree on whether it’s a dip or a correction[10].
As a legacy website making most of its revenue from advertising, it’s not even remotely zeitgeisty. But Reddit has a lot going for it. It has 108 million active daily users and the firm reports that advertising revenues grew 61% in the first quarter of 2025[11].
What to watch
The spanner in the works is AI, and whether Reddit can harness it for growth or end up fighting it. Reddit is a huge referral source for web users looking for product recommendations. If it can find a way to work with, and not against, AI platforms for that revenue, its impressive recent growth could skyrocket.
The main concern is how Reddit attracts more eyeballs. For as long as it has existed, Reddit has relied on people finding its content via search engines. Once they’re on the site, Reddit gives them reasons to return directly. But since Google introduced AI overviews in its search results, users have had less reason to click through to the sites that actually published the information.
Reddit’s future fortunes lie in its ability to withstand AI headwinds.
The bottom line
We all know tech stocks are pricey, but do Palantir, Zoom, Cisco, and Reddit represent value, nonetheless? For the higher ticket price, you’re buying potentially enormous growth. Smart traders and investors will be attracted to undervalued picks, that have a high ceiling or stand to benefit more than their competitors from the AI revolution. They’ll be avoiding overheated stocks and product categories that are exposed to tariff pressures and regulatory scrutiny.