Likewise, investment firm Macquarie expects software stock fundamentals to “remain generally positive in 2025," although "potentially accompanied by bouts of volatility." Related: Bank of America reveals top technology stock pick for 2025 "We expect positive sentiment to persist,

Artificial intelligence (AI) was a market-driving theme last year, with AI stocks helping the S&P 500, the Nasdaq, and the Dow Jones Industrial Average each soar in the double digits. Companies selling AI tools and services saw earnings climb -- and investors piled into these players.

Myron Xie says TSM stock is the only game in town for AI chips. Nvidia and hyperscalers building their own chips rely heavily on TSMC.

Artificial intelligence (AI) continued to be a major investment theme in 2024, driving tech stocks to record highs as companies continued to pour millions into the emerging technology. With no signs of slowing down,