Best Tech Stocks to Watch in June 2025

These are the top tech stocks based on best value, fastest growth, and most momentum

Tech stocks posted strong gains in May, with the Technology Select Sector SPDR Fund (XLK)
up 6%, as the White House softened its stance on tariffs with key trading partners. Risk-on sentiment boosted high-growth tech names, even as yields climbed following the House’s passage of the Trump administration’s “One Big Beautiful Bill.” The bond market sold off in response to concerns over a sharply rising federal deficit and national debt, pushing interest rates higher.

These are the best tech stocks to watch for June 2025. All data are current as of May 23, 2025.

Key Takeaways

• Tech stocks rallied in May, with the Technology Select Sector SPDR Fund up 6%, as easing tariff rhetoric and risk-on sentiment outweighed rising yields.
• Investors interested in tech stocks could consider value investing, fast-growing stocks, or stocks with the most momentum—those that have recently outperformed their peers or the broader market.
• Yiren Digital, Sezzle, and Quantum Computing are among the tech stocks that have demonstrated the best value, fastest growth, and most momentum over the last 30 days.

Best-Value Tech Stocks

Value investing is about finding stocks trading below their true worth, with the expectation that the market will eventually correct the mispricing. Investors often use price-to-earnings (P/E) ratio, looking for stocks with a low P/E ratio to uncover value. Typically, a lower P/E ratio signals an undervalued stock because it means the company is valued less than its fundamental value. These stocks may offer a stronger return after the market adjusts.

However, bargain hunters must exercise patience, as it may take multiple quarters (or years) before a turnaround materializes. Some stocks may also remain cheap for a reason, falling into a “value
trap,” continuing to underperform despite appearing undervalued. Moreover, the P/E ratio should not be viewed in isolation. Investors should ask why a stock is trading at a discount to its peers and whether that gap is likely to close due to a business recovery or the market recognizing the value
opportunity.

• Yiren Digital Ltd: Yiren is an AI-powered platform in China offering digital financial services, insurance brokerage, and lifestyle products. Its core business includes facilitating loans to underserved borrowers, brokering insurance products, and providing consumer goods and services. For its fiscal year 2024, the company facilitated 53.5 billion RMB worth of loans, up from 36 billion RMB in the year prior.
• DoubleDown Interactive Co: DoubleDown is a South Korea-based developer and publisher of digital games, best known for its social casino game DoubleDown Casino. It also operates iGaming sites through its subsidiary SuprNation. In Q1 2025, the company reported $83.5 million in revenue, down from $88.1 million the previous year, due to a decline in social casino revenues.
• Consensus Cloud Solutions, Inc: Consensus is a secure information delivery company specializing in cloud-based communication, data extraction, and digital signature solutions. In Q1 2025, revenue declined slightly by 1.1% to $87.1 million, as the company looked to move away from its small office and home office segment. Despite the revenue decrease, Consensus reaffirmed its full-year guidance.

Fastest-Growing Tech Stocks

Growth investors look for companies with increasing revenue and earnings per share (EPS), believing these metrics signal strong business fundamentals and potential for value appreciation. However, relying on just one of these indicators can present an incomplete picture, as factors like tax law changes, mergers, or one-time gains can distort the numbers.

While growth investing offers the potential for high returns, it also comes with risks, such as inflated valuations, market volatility, and companies failing to sustain rapid expansion. Investors should
be cautious of excessive hype, unsustainable growth rates, and external economic factors that could impact performance. For a more balanced assessment, we employ a dual-metric approach. We equally weight the most recent year-over-year (YOY) percentage growth in both revenue and earnings per share (EPS), giving each consideration to provide a clearer view of each company’s true growth trajectory. In addition, we exclude companies that exhibit extraordinarily high growth rates—specifically, those with quarterly growth exceeding 1,000%—since these are outliers not likely on a sustainable trendline.

• Sezzle, Inc: Sezzle is a popular Buy Now Pay Later (BNPL) company primarily targeting Gen Z and millennials. In Q1 2025, the company saw significant growth, with revenue up 123% year-over-year to $104.9 million, with gross merchandise volume reaching $809 million, up 64% year-over-year.
• Innodata, Inc: Innodata is a data engineering company that helps major tech firms build and scale generative AI systems by providing high-quality training data, platforms, and services. In Q1 2025, the company reported 120% year-over-year revenue growth to $58.3 million, and reaffirmed guidance for over 40% revenue growth for the year, driven by strong demand for its service, particularly from big tech clients.
• Mobileye Global, Inc: Mobileye is a leading technology company specializing in advanced driver-assistance systems (ADAS) and autonomous driving solutions. On March 25, Mobileye announced it is partnering with Volkswagen Group to introduce features such as hands-free highway driving, smart parking, and 360-degree hazard detection.

Tech Stocks With the Most Momentum

Momentum investing is a strategy that seeks to capitalize on existing market trends by investing in stocks that have recently outperformed their peers or the broader market. The core idea is that stocks on an upward trajectory are likely to continue rising as long as the fundamental drivers
behind their growth remain intact.

This strategy is particularly popular in the tech sector, where innovation, product launches, and market disruptions often lead to rapid stock price appreciation. However, investors must carefully monitor stock valuations, as fast-rising stocks often outpace their fundamentals. When valuations become overstretched, they can form speculative bubbles that are vulnerable to sharp selloffs if market sentiment shifts. Here are the tech stocks with the highest total return in the last 12 months.

• Quantum Computing, Inc: Quantum Computing is an integrated photonics and quantum technology company focused on developing accessible and affordable quantum computing solutions. While still in the pre-revenue stage, Quantum Computing’s shares have followed the sector higher after D-Wave Quantum (QBTS) unveiled its latest quantum computer, which purportedly has the ability to solve problems far quicker than a classical GPU-based computer.
• Diginex Limited: Diginex is a London-based regulation technology company that uses blockchain, AI, and data analytics to help businesses and governments improve ESG and sustainability reporting. In May 2025, the company announced an investment of 6.75 million warrants of Diginex shares worth $300 million by a member of the Abu Dhabi royal family.
• Sezzle, Inc: Sezzle is a popular Buy Now Pay Later company primarily targeting Gen Zers and millennials. In Q1 2025, the company saw significant growth, with revenue up 123% year-over-year to $104.9 million, with gross merchandise volume reaching $809 million, up 64% year-over-year.

Advantages of Tech Stocks

Growth Potential

Tech companies, especially those in emerging sectors like artificial intelligence, cloud computing, and cybersecurity, often experience rapid revenue and earnings growth. Many tech firms have scalable business models that allow them to expand globally, while maintaining high gross margins.

Innovation

The tech industry is constantly evolving, with companies pioneering groundbreaking innovations that reshape entire industries. Investors in leading tech firms can benefit from major technological shifts, such as AI, and automation, creating long-lasting competitive advantages.

Recurring Revenues

Many tech companies, particularly those in software, cloud computing, and digital services, operate on subscription-based or recurring revenue models, ensuring more stable and predictable cash flows. These models provide businesses with greater revenue visibility, reduce dependence on one-time sales, and enhance customer retention through long-term contracts and service integrations. Additionally, recurring revenue helps mitigate economic downturns by offering consistent income streams, while also enabling companies to reinvest in research, development, and expansion

Disadvantages of Tech Stocks

Volatility

Tech stocks are known for their high volatility because rapid technological changes and competitive pressures can lead to significant price fluctuations. They often carry high valuations based on growth expectations, making them susceptible to market corrections if they fail to meet these
projections. Furthermore, regulatory challenges and geopolitical tensions can impact the sector, introducing additional risks and uncertainties for investors.

Valuation Risks

Owing to their high growth potential, many tech companies trade at high earnings or revenue multiples, making them susceptible to overvaluation. If growth expectations do not materialize, these stocks can experience sharp declines, leading to potential losses for investors. Moreover,
early-stage tech companies often allocate a significant portion of their capital to staffing and marketing to sustain their high growth rates. As a result, they tend to remain unprofitable in their initial stages, often relying on outside capital to fund expansion, despite achieving higher gross margins than companies in non-technology sectors.

Regulatory and Competitive Challenges

The tech industry faces increasing scrutiny from regulators on issues like data privacy,
antitrust concerns, and cybersecurity. Tech giants such as Meta Platforms (META)
and Alphabet Inc (GOOGL) are no strangers to regulatory probes and fines.  Additionally, competition is fierce, with companies constantly innovating to maintain their market position, which can erode profitability and market share over time.

The Bottom Line

Tech stocks offer compelling investment opportunities due to their high growth potential, continuous innovation, and recurring revenue models, making them a dominant force in the global economy. AI is set to be a major driver of technological advancements in 2025, with the potential to
disrupt all major industries. However, the sector can be volatile, with regulatory scrutiny expected to increase along with innovation. Investors should exercise caution, ensuring that even the most promising tech stocks are evaluated critically to avoid getting caught up in market bubbles or
speculative hype.

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