The year 2024 saw a massive rally in the tech sector, with the Nasdaq soaring over 90% in two years. As the stock market experiences healthy recalibrations to reset valuation levels, the best investors and Wall Street giants take advantage of corrections and pullbacks. Long-term investors should focus on key levels such as the 50-day and 200-day moving averages for stocks like Microsoft (MSFT) and Meta (META).
Two great tech stocks that investors can buy in 2025 are Cadence Design Systems (CDNS) and Arista Networks (ANET). CDNS has a history of rapid growth, with its stock price soaring roughly 5,000% over the last 15 years. The company’s modeling and computational software is essential for the lifecycle of electronic products, making it a valuable player in the tech industry.
Arista Networks has also experienced significant growth, with its revenue increasing from $361 million in 2013 to $5.86 billion last year. The company boasts over 8,000 cloud customers worldwide, including Microsoft and Meta, which have grown to rely heavily on Arista Networks for their big data growth and AI dreams.
Both CDNS and ANET have impressive balance sheets, with CDNS having $2.4 billion in cash and equivalents and ANET having $7.4 billion. However, both stocks have traded at a premium to the tech sector in the past, making them attractive buys as they approach their 50-day and 200-day moving averages.
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Source: https://finance.yahoo.com/news/zacks-investment-ideas-feature-highlights-071500282.html