3 Leading Tech Stocks to Buy in 2025

Key Points

• Taiwan Semiconductor's foundry leadership makes it a winner in almost all AI chip scenarios.

• International Business Machines is a steady dividend stock with AI and quantum computing exposure.

• ASML Holding is heating up as market sentiment improves.

• 10 stocks we like better than Taiwan Semiconductor Manufacturing ›

Wall Street is seldom boring, and 2025 -- so far -- has been an exciting year for bullish investors.

The U.S. stock market's three major indexes are all up year to date, led by the Nasdaq Composite's 18% gains since January. Yes, the technology space has dominated the story this year, with artificial intelligence (AI) at the forefront.

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But while 2025 will soon wind down and give way to 2026, this year's stories aren't entirely written. There is still time to find stocks to buy, even in the technology sector, which continues to present winning stocks at buyable valuations.

Here are three leading tech stocks with manageable valuations you can still buy in 2025.

Image source: Getty Images.

1. Taiwan Semiconductor Manufacturing

The AI boom began in late 2022, but the future is still relatively unknown. What will AI become and who will be the winners a decade from now? It's hard to know for sure, but Taiwan Semiconductor Manufacturing (NYSE: TSM) will likely stand tall years from now. One certainty is that AI technology requires vast quantities of chips, which work together as clusters in data centers to train and operate AI models at scale.

TSMC, as it is better known, is the world's leading chip foundry, or a company that manufactures the semiconductor chips designed by other companies, like Nvidia. The company has an estimated 67% share of the global foundry market. Its leading capacity and advanced manufacturing technologies make it a no-brainer for AI chip companies that need to produce large quantities of cutting-edge chips.

Investors don't need to rely solely on Nvidia to dominate the AI chip market, because even if competitors emerge, there's a good chance that TSMC will handle the manufacturing. In a way, it makes TSMC the ultimate catch-all AI stock to own. The stock still trades at 27 times its 2025 earnings estimates. That's a potential bargain if the company grows earnings by 21% annualized over the next three to five years, as Wall Street analysts anticipate.

2. International Business Machines

Long-time technology blue chip stock International Business Machines (NYSE: IBM) doesn't get the headlines its peers do these days, but "Big Blue," or IBM for short, is very much a prominent AI stock. The company has generations of technology infrastructure ingrained across the corporate landscape, giving it a sticky customer base to which it can sell.

For instance, approximately 93% of Fortune 500 companies use IBM's hybrid cloud computing. IBM offers AI technology within that infrastructure, as well as AI and software consulting services. Essentially, IBM forges close ties with its corporate clients and sells them a bill of AI goods and services. IBM has also aggressively pursued quantum computing technology as a potential long-term growth driver.

IBM was once fading from the broader technology landscape, but it has made progress in modernizing its business. Analysts now see the company growing its earnings by an average of nearly 6% annually over the next three to five years. Those looking for a dividend-paying tech stock will enjoy the company's long-running dividend, which yields 2.5% at its current price and has grown for 29 consecutive years.

3. ASML

This year hasn't been kind to all tech stocks. ASML (NASDAQ: ASML) has had a tough go of it. Shares currently trade 12% below their all-time high, though the stock has performed well over the past few weeks. ASML plays a key role in the semiconductor industry as the only company that develops and sells extreme ultraviolet (EUV) lithography machines, which use light to print intricate microscopic patterns on silicon wafers, a crucial aspect of manufacturing the most advanced chips.

ASML's stock has struggled amid a complex global landscape rife with trade tensions and tariff uncertainty. But recent developments, including the U.S. government's investment in Intel's foundry business and strong business results from TSMC, have boosted the market's confidence that these companies will invest more in ASML's equipment and given the stock some newfound momentum.

Despite ASML's recent surge, the stock remains attractively priced for prospective buyers. Analysts estimate that ASML will grow its earnings by an average of 21% annually over the next several years. That's plenty of growth to justify buying the stock at its current forward price-to-earnings ratio of 33.

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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Intel, International Business Machines, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.