3 interesting growth stocks for 2025
The year 2024 was an interesting time for stocks in the technology sector. Despite the generally weaker performance of the semiconductor industry, with the PHLX Semiconductor Sector Index underperforming the broader S&P 500 Index, some companies managed to significantly outperform expectations. Below, we highlight three companies that performed above average in 2024.
These are two semiconductor stocks and one technology firm that is benefiting from rising demand for data centers 👇
Semtech: A growing data centre segment with great potential
Semtech $SMTC posted a 206% total return for investors in 2024. This success is supported by strong performance in the infrastructure segment, where the company's products improve the quality and strength of electrical and optical signals in data centers.
As the volume of data transmitted increases, signals are weakening, increasing the need for technologies to amplify them. Semtech's revenue from this segment has grown more than 40% year-over-year in two of the last three quarters. Yet this market still represents a small portion of the company's total revenue - $66 million in the most recent quarter.
In addition, the company's core technology, LoRa, posted impressive year-over-year revenue growth of 104%. A resurgence in the core industrial customer segment and accelerating growth in data centers make this an interesting story for the year ahead.
Impinj: RFID chips for inventory tracking with huge market potential
Impinj $PI is another company that surprised in 2024. It performed above expectations with a total return of 109%. The company makes radio frequency identification (RFID) chips that allow for more efficient inventory tracking.
Impinj's technology offers many advantages over traditional methods, such as reading chips from up to 30 feet away, whereas barcodes require line-of-sight. Although the company achieved sales of $354 million in the last 12 months, the overall addressable market remains massive and underserved.
As global manufacturing and shipping volumes increase, demand for these chips is likely to continue to grow. Analysts have a positive view of Impinj, with their average price target suggesting a potential upside of a further 19%.
Arista Networks: the technology leader in data centres
Arista Networks $ANET, with a 76% return in 2024, is a major player in the communications technology space. The company provides modular networking solutions for data centers that enable interconnection of servers and storage.
One of the key aspects of Arista's technology is its open platform, which enables its compatibility with hardware from various manufacturers. This flexibility helps it gain market share at the expense of competitors such as Cisco.
With a market capitalisation of USD 130 billion, Arista is one of the technology giants. Yet its strong customer relationships and unique value proposition suggest that the company still has room to grow.
Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.
Source: Investing.com
