What's Next for 2024's Most Dramatic Tech Stocks?

2024’s shares value rise propelled stocks like Palantir and Reddit to record highs, but at the same time, the very same surge exposed weaknesses in giants like Intel, highlighting both key opportunities and risks within 2025’s tech sector performance to decide on tech stocks to buy.

The 2024 AI boom reshaped tech investments, favoring agile firms. Stocks like Reddit, Palantir, and Vistra became top picks for 2025, mostly, indirectly endorsed by Reddit’s data licensing, Palantir’s AI analytics services, and Vistra’s energy gains, highlighting sectors with strong momentum.

Intel’s decline and Super Micro’s volatility revealed risks of outdated strategies in best growth tech stocks to buy now as an ever-changing market. Analysts recommend focusing on companies at the heart of AI infrastructure for opportunities in the upcoming year.

What Were the Best Tech Stocks In 2024?

One of the year’s biggest surprises was Reddit, up 382% since its March initial public offering (IPO), driven by data licensing deals with OpenAI and Google – which tap into the platform’s data – to train AI models.

A solid October earnings report released by its Third Quarter 2024 Results and its further attempts to juice ad revenue didn’t hinder the optimism. Morgan Stanley analyst, Brian Nowak, upgraded Reddit’s stock to “overweight” for 2025, citing its potential for sustained engagement and advertising leap.

Palantir Technologies saw sales growth surge to 26% this year, up from 17% in 2023, driving a 332% shares’ surge and a valuation nearing $170 billion.

Set to join the Nasdaq 100 next week, Palantir received mixed Wall Street reviews, with Wedbush analysts predicting further gains in 2025, though only three of 22 Bloomberg analysts tracked rated the stocks as a “buy.”

The best AI tech stocks to buy were affected by traditional technology, with Vistra Corp – power producer – leading the S&P 500 with a gain of 256%. Rising energy demand from data centers running AI models boosted independent power producers as market leaders like Vistra and Palantir further endorse investments in AI infrastructure technologies.

Tough Year for Intel and Super Micro

While AI powered gains for some, it exposed weaknesses in others.

If we are to take Intel as an example, for a long time, the chip giant’s stocks were leading tech stocks to buy, until its value dropped 62%. The reason? Lagging behind Nvidia and AMD in recent quarters while incurring costs for new factories and upgraded technology.

The final blow was when Intel cut its dividend, laid off 15,000 employees, and recently fired its CEO Pat Gelsinger earlier this month. Now, Intel is led by two interim CEOs as the board searched for permanent full-time replacement.

Cautious analysts, with only seven out of 50 advising a “buy” for Intel stocks, immensely highlight the fundamental struggles the company is facing. Another well-known victim was Super Micro Computer, initially benefited from AI-driven servers demand in data centers. Its best tech stocks to buy in 2024peaked in March after it joined the S&P 500 but slid after a short-seller report questioning its internal controls.

Super Micro delayed financial filings, lost its auditor, and risked its Nasdaq listing. Its best tech stocks to buy in 2024 fell 74% from its peak, with a February 25 deadline to file financial reports and avoid delisting.

AI’s Grip in 2025’s Tech

With AI driving growth across for tech stocks for 2024 in data, software, and energy, the year’s winners hint at 2025 trends. AI infrastructure players, from data providers like Reddit to power producers like Vistra, are expected to maintain gains and high revenues, while Intel faces mounting pressure to recover.

AI is what to like within tech and tech stocks to buy, but we expect a broader tech tape in 2025,” said Scott Yuschak, managing director of equity strategy at Truist Advisory Services.

The market may see new winners surfacing to the scene with more companies looking to generate revenue from AI, Intel and Super Micro’s struggles show not every tech company will automatically have a seat at the table.

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