The Best Tech Stocks to Buy

Technology stocks offer investors the promise of growth in ways few other sectors can. After all, technology is synonymous with innovation, which spawns new products, services, and features.

In the year to date, the Morningstar US Technology Index rose 2.14%, while the Morningstar US Market Index gained 3.13%. The tech stocks that Morningstar covers look fairly valued as a group.

The 12 Best Tech Stocks to Buy Now

These were the most undervalued tech stocks that Morningstar’s analysts cover as of June 10, 2025.

1. Endava DAVA
2. Sensata Technologies ST
3. Akamai Technologies AKAM
4. Sabre Corporation SABR
5. Nice NICE
6. Adobe ADBE
7. Globant GLOB
8. Elastic ESTC
9. Marvell International MRVL
10. ON Semiconductor ON
11. Littelfuse LFUS
12. Teradyne TER

To come up with our list of the best tech stocks to buy now, we screened for:

• Technology stocks that are undervalued, as measured by our price/fair value metric.
• Stocks that earn narrow or wide Morningstar Economic Moat Ratings. We think companies with narrow moats can fight off competitors for at least 10 years; wide-moat companies should remain competitive for 20 years or more.
• Tech stocks with Morningstar Uncertainty Ratings lower than Extreme. This captures a range of confidence levels around estimating the companies’ fair values.

Here’s a little more about each of the best tech stocks to buy, including commentary from the Morningstar analysts who cover each company. All data is as of June 10, 2025.

Endava

• Morningstar Price/Fair Value: 0.48
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Industry: Software - Infrastructure

Software infrastructure firm Endava is the cheapest stock on our list of the best tech stocks to buy. Endava is a next-generation IT services company that primarily assists clients with their digital transformation efforts by creating customized software for them. The stock is trading 52% below our fair value estimate of $35.50 per share.

Endava, based in the UK, is an IT services company focused on providing digital transformation and engineering services. It generates revenue mainly by charging clients on a time and materials basis for services such as consulting/advice, customized software development and integration, and quality assurance and testing. Endava is highly exposed to the financial-services sector, with nearly half of its revenue generated from the sector. Within financial services, Endava is known for its expertise in payments and private equity.

Like many of its peers, Endava’s core strategy is to land and expand, which means securing big clients and growing revenue in those relationships by increasingly providing these clients more services. Endava’s 10-largest clients account for around a third of group revenue with the largest, Mastercard, contributing around 10%. Mastercard has been a client for over 20 years.

The company concentrates on the financial services and technology, media, and telecom industries. The company aims to diversify its industry exposure by securing new clients from new verticals. In particular, Endava is targeting clients in retail and healthcare given its current expertise is most transferrable to these areas.

Similarly, the company is geographically concentrated with around 33% of revenue generated in the UK and around 26% generated in continental Europe. To diversify, Endava is primarily growing its business in North America.

Endava’s delivery model is based on agile project management from employees in nearshore locations, which it plans to expand. To best serve its clients’ unique digital transformation goals, the flexibility from the iterative nature of agile project management is effective. Furthermore, the nonstandardized nature of these projects requires constant dialogue and interaction between Endava and its clients, which means having delivery teams with similar time zones to its clients (nearshoring) is best to deliver the project successfully in a timely manner.

Endava is striving to return organic revenue growth to around 20% per year with a relatively stable adjusted-profit-before-tax margin of 20%.

Read more about Endava here.

Sensata Technologies

• Morningstar Price/Fair Value: 0.56
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Industry: Scientific & Technical Instruments

Sensata Technologies is a global supplier of sensors for transportation and industrial applications. Sensata Technologies is an affordable tech stock, trading at a 44% discount to our fair value estimate of $51 per share. The technical instruments company earns a narrow economic moat rating.

We view Sensata Technologies as a differentiated supplier of sensors and electrical protection, predominantly for transportation markets. The firm has oriented itself to benefit from secular trends toward electrification, efficiency, and connectivity. Despite the cyclical nature of the automotive and heavy vehicle markets, electric vehicles and stricter emissions regulations provide Sensata the opportunity to sell into new sockets, which has allowed the firm to outpace underlying vehicle production growth by about 4% historically. We think such outperformance is achievable over the next 10 years, given our expectations for a fleet mix shift toward EVs and Sensata’s growing addressable content in higher-voltage vehicles.

In our view, Sensata’s ability to grow its dollar content in vehicles demonstrates intangible assets in sensor design, as it works closely with OEMs and Tier 1 suppliers to build its products into new sockets. We also think the mission-critical nature of the systems into which Sensata sells gives rise to switching costs at customers, leading to an average relationship length of roughly three decades with its top 10 customers. As a result of switching costs and intangible assets, we believe Sensata benefits from a narrow economic moat, and we expect it to earn excess returns on invested capital for the next 10 years.

Over the next decade, we expect Sensata to focus on organic growth in electric vehicles and increasingly electrified industrial applications. The firm has historically been an active acquirer but is focusing on organic investment, reduced leverage, and increased shareholder returns in the medium term, of which we approve. After a misguided strategic foray into the telematics market, Sensata changed CEOs and divested its failed Insights business. We like the firm’s focus on electrification, which we feel is the most attractive growth opportunity available. Still, we believe new management has to prove an ability to extract consistent organic growth to investors. The firm’s ability to grow content in electric vehicles and outperform underlying global automotive production are the primary drivers of our investment thesis.

Read more about Sensata Technologies here.

Akamai Technologies

• Morningstar Price/Fair Value: 0.58
• Morningstar Uncertainty Rating: Medium
• Morningstar Economic Moat Rating: Narrow
• Industry: Software - Infrastructure

Next on our list of the best tech stocks to buy is Akamai Technologies. Akamai operates a content delivery network, which entails locating servers at the edges of networks so its customers, which store content on Akamai servers, can reach their own customers faster, more securely, and with better quality. The stock is trading at a 42% discount to our fair value estimate of $135 per share.

Akamai has successfully repositioned itself to benefit from trends such as the increasing need for cybersecurity and edge computing. Its legacy content delivery network may be the firm’s foundation, but it only accounts for a third of revenue today. We think continued growth in its security and computing businesses will drive incremental value for the firm and strengthen its competitive positioning.

The CDN industry continues to face pricing pressure, primarily as major media companies and hyperscalers—once major customers of Akamai—have created their own networks in the wake of growing internet traffic. With the foresight to these intensifying competitive pressures, management began investing over a decade ago outside of the CDN business and into security, which has grown to over 50% of sales, compared with only 12% in 2015. Most of Akamai’s CDN customers now subscribe to at least one security solution, with a growing proportion of customers utilizing multiple security offerings. Content delivery and security work in tandem--Akamai’s CDN business provides a large market of potential customers for its security business, while security enhances the value and reduces churn of its CDN business.

More recently, Akamai began investing in its cloud computing business. Through its 2022 acquisition of Linode, a developer-friendly cloud infrastructure business, Akamai has extended its dense, distributed network to capitalize on the growing demand for cloud computing. Although competition will remain stiff, particularly as it goes up against the major hyperscalers, we think Akamai’s differentiated and distributed network, with over 4,300 points of presence, will allow the firm to capitalize on the growing demand for edge computing, mainly as 5G enhances networking capabilities at the edge of networks.

Although CDN will likely remain in secular decline, we think it remains essential for Akamai. Content delivery provides a baseline of customers and infrastructure the firm can capitalize on, particularly in its security and computing businesses, which we think will enhance customer stickiness and drive growth through our forecast.

Read more about Akamai Technologies here.

Sabre Corporation

• Morningstar Price/Fair Value: 0.61
• Morningstar Uncertainty Rating: Very High
• Morningstar Economic Moat Rating: Narrow
• Industry: Software - Infrastructure

Sabre holds the number-two air booking volume share in the global distribution system industry. The firm earns a narrow economic moat rating and the shares of its stock look 39% undervalued relative to our $4.87 fair value estimate.

Despite near-term economic growth concerns emanating from tariff uncertainty, we expect Sabre to reduce its debt to adjusted EBITDA toward 6 times by the end of 2025 from about 10 times in 2024, using proceeds from the prudent sale of its hospitality solutions business (scheduled to close in late 2025). We maintain our stance that Sabre will hold its position in global distribution systems, or GDS, over the next 10 years. This view is driven by a gradual recovery in corporate travel and Sabre’s leading network of airline content and travel agency customers as well as its solid position in technology solutions for these carriers and agents. Sabre’s 30%-plus GDS air transaction share is the second largest of the three companies (behind narrow-moat Amadeus and ahead of privately held Travelport) that together control about 100% of market volume.

Sabre’s GDS enjoys a network advantage, which is the source of its narrow moat rating. As more supplier content (predominantly airline content) is added, more travel agents use the platform, and as more travel agents use the platform, suppliers offer more content. This network advantage is solidified by technology that integrates GDS content with back-office operations of agents and IT solutions of suppliers, leading to more accurate information that is also easier to book. The firm’s network prowess should be supported by its technology partnership with wide-moat Alphabet and its transition to the cloud, both of which we see driving innovation and cost efficiencies. To this point, the company’s next-generation platform, SabreMosaic, which is an open-source cloud-based, artificial intelligence solution makes it easier for airlines to customize its offering and upsell content.

Replicating Sabre’s GDS platform would entail aggregating and connecting content from several hundred airlines to a platform that is also connected to travel agents, which requires significant costs and time. Sabre’s GDS faces some risk of larger carriers making direct connections with larger agencies, although we expect these relationships to be the exception rather than the rule and for Sabre to still be the aggregating platform in either case.

Read more about Sabre Corporation here.

NICE

• Morningstar Price/Fair Value: 0.66
• Morningstar Uncertainty Rating: Medium
• Morningstar Economic Moat Rating: Narrow
• Industry: Software - Application

NICE Ltd is an enterprise software company that serves the customer engagement and financial crime and compliance markets. The firm earns a narrow economic moat rating and the shares of its stock look 34% undervalued relative to our $268 fair value estimate.

Nice provides cloud and on-premises software solutions that serve the customer engagement and financial crime and compliance markets. Most of its revenue is generated in the US, but international expansion has become a bigger priority.

The customer engagement segment contributes around 85% of total revenue. It is mainly driven by Nice’s flagship product, CXone Mpower, which is a cloud-native contact-center-as-a-service platform. CXone helps companies manage customer service. It brings together tools for handling phone calls, chats, emails, and social media messages in one place, so contact center agents can assist customers more efficiently. CXone is the world leader in the CCaaS market and is considered to be the most comprehensive platform. Nice’s CXone strategy is focused on winning large enterprise deals, increasing penetration in international markets, expanding reach through strategic partnerships, and continued product innovation, mainly integrating advanced artificial intelligence capabilities.

Nice earns about 15% of revenue from its financial crime and compliance business, which provides solutions to help financial institutions detect, prevent, and manage financial crimes (money laundering and fraud) and regulatory compliance. Nice’s strategy is to support financial institutions’ move to the cloud and expand its market reach through its two main cloud platforms, X-Sight and Xceed. X-Sight targets large financial institutions while Xceed is designed for midtier banks and financial institutions. The shift to the cloud has been slow for financial institutions, given their conservative nature and regulatory burdens. However, high switching costs mean this segment earns high margins despite being much smaller than the customer engagement segment.

Read more about NICE here.

Adobe

• Morningstar Price/Fair Value: 0.71
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Wide
• Industry: Software - Application

Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing, and engaging with compelling content over multiple operating systems, devices, and media. Trading 29% below our fair value estimate, Adobe has an economic moat rating of wide. We think shares of this stock are worth $590 per share.

Adobe has come to dominate in content creation software with its iconic Photoshop and Illustrator solutions, both now part of the broader Creative Cloud. The firm has added new products and features to the suite through organic development and bolt-on acquisitions to drive the most comprehensive portfolio of tools used in print, digital, and video content creation. The December 2021 launch of Adobe Express helps further broaden the company’s funnel, as it incorporates popular features of the full Creative Cloud but comes in lower cost and free versions. The 2023 introduction of Firefly marks an important artificial intelligence solution that should also attract new users. We think Adobe is properly focusing on bringing new users under its umbrella and believe that converting these users will become more important over time.

CEO Shantanu Narayen provided Adobe with another growth leg in 2009 with the acquisition of Omniture, a leading web analytics solution that serves as the foundation of the digital experience segment that Adobe has used as a platform to layer in a variety of other marketing and advertising solutions. Adobe benefits from the natural cross-selling opportunity from Creative Cloud to the business and operational aspects of marketing and advertising. On the heels of the Magento, Marketo, and Workfront acquisitions, we expect Adobe to continue to focus its M&A efforts on the digital experience segment and other emerging areas.

The Document Cloud is driven by one of Adobe’s first products, Acrobat, and the ubiquitous PDF file format created by the company; it is now racing to become a $4 billion business. The rise of smartphones and tablets, coupled with bring-your-own-device and a mobile workforce, has made a file format that is usable on any screen more relevant than ever.

Adobe believes it is attacking an addressable market well in excess of $200 billion. The company is introducing and leveraging features across its various cloud offerings (like Sensei artificial intelligence) to drive a more cohesive experience, win new clients, upsell users to higher-price-point solutions, and cross-sell digital media offerings.

Read more about Adobe here.

Globant

• Morningstar Price/Fair Value: 0.73
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Industry: Information Technology Services

Globant is a next-generation IT services company that primarily assists clients with their digital transformation efforts by creating customized software for them. Trading 27% below our fair value estimate, Globant has an economic moat rating of narrow. We think shares of this stock are worth $141 per share.

Globant, headquartered in Luxembourg but largely based in Latin America, is an information technology services company focused on providing digital transformation and engineering services. It generates revenue mainly by charging clients on a time and materials basis for services such as consulting/advice, customized software development and integration, and quality assurance and testing. Globant is primarily exposed to the media and entertainment and financial-services sectors, which each account for around 20% of revenue.

Like many of its peers, Globant’s core strategy is to land and expand—securing big clients and growing revenue in those relationships by increasingly providing these clients more services. Globant’s 10 largest clients account for around a third of group revenue, with the largest, Walt Disney, contributing around 10%. Disney has been a client for over 10 years.

Globant is relatively concentrated geographically, with more than half of its revenue generated in North America. The company is now focused on diversifying geographically, particularly in Europe.

Globant’s “studio” delivery model is based on agile project management from employees in nearshore locations. By organizing itself in small units focused on a particular industry or emerging technology (studios), the company develops deep pockets of expertise and can deliver innovative solutions to its clients faster than many of its peers. To best serve a client’s unique digital transformation goals, the flexibility from the iterative nature of agile project management is effective. Furthermore, the nonstandardized nature of these projects requires constant dialog and interaction between Globant and its clients, which means it’s best to have delivery teams with similar time zones to its clients (nearshoring) so as to deliver the project successfully in a timely manner.

Globant generally aims to grow revenue at 3-4 times the rate of the IT services market and is striving to reach a 17% non-GAAP operating margin in the medium term.

Read more about Globant here.

Elastic

• Morningstar Price/Fair Value: 0.76
• Morningstar Uncertainty Rating: Very High
• Morningstar Economic Moat Rating: Narrow
• Industry: Software - Application

Elastic is a software company based in Mountain View, California, focusing on search-adjacent products. The firm earns a narrow economic moat rating, and the shares of its stock look 24% undervalued relative to our $111 fair value estimate.

We are positive on Elastic’s prospects in the observability, security, and search markets. The firm’s solutions benefit from secular tailwinds driving an accelerating increase in data for enterprises to secure, search through, and monitor. In our opinion, the firm’s sticky product portfolio, broad swath of products that enable clients to conduct a variety of mission-critical tasks, and increased penetration in the enterprise market have enabled Elastic to form a narrow economic moat around its business.

As the use of AI becomes more prevalent in enterprises, we believe Elastic will enjoy tailwinds across its three end markets. In particular, we expect Elastic’s search business to be a beneficiary of increased investments in AI as companies leverage Elastic’s search capabilities and platform to build their own AI applications.

At the same time, however, we see strong growth opportunities for Elastic in the observability and security verticals as well. To this end, the firm has been investing heavily in its sales and research divisions, a strategy that we view as sound. In addition, with different use cases enabled by its three end markets, we believe Elastic has a big cross-selling opportunity ahead of it.

As Elastic lands and expands its customer base, we see the benefits of the cross-selling opportunity at play. As a client adopts a multiproduct offering, Elastic’s entrenchment in that client’s ecosystem increases. This entrenchment subsequently results in a higher client lifetime value. In our opinion, the firm’s strong net retention rate is evidence of the upselling strategy’s success. With the ability to consistently add new customers and subsequently upsell them, Elastic has strong long-term growth prospects, in our opinion.

Read more about Elastic here.

Marvell International

• Morningstar Price/Fair Value: 0.76
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Industry: Semiconductors

Marvell Technology is a fabless chip designer focused on wired networking, where it has the second-highest market share. The firm earns a narrow economic moat rating, and the shares of its stock look 24% undervalued relative to our $90 fair value estimate.

We view Marvell Technology as a strong competitor in networking chips, resulting from a multiyear business pivot using acquisitions, divestitures, and organic development to focus on the cloud data center market. In our view, Marvell offers strong growth potential, impressive profitability, and a healthy competitive position. Between switching, processing, and optical chips, Marvell has one of the broadest networking silicon portfolios in the world, and we believe it is primed to expand faster than its underlying markets as future networking setups utilize greater content, and we anticipate Marvell will continue to win shares even in an expanding market. In particular, we believe Marvell will be a significant beneficiary of investment in generative artificial intelligence, or AI, with its strong position in optical chips and a burgeoning custom accelerator business.

We expect Marvell to continue competing at the cutting edge of networking silicon with chip heavyweights like Broadcom, Nvidia, and Intel. Marvell’s billions in cumulative R&D investment, both organically and via acquisitions, has generated design prowess, and we see its strong customer relationships with cloud providers and networking equipment vendors alike as sticky. Marvell wins designs using its broad portfolio of intellectual property to create tailored or customized solutions, and it earns impressive profits while doing so. In our view Marvell merits a Narrow economic moat rating.

Marvell’s recent financial history has been choppy through the firm’s transformation and pivot toward the cloud. We think reorganization and transformative acquisitions are squarely in the firm’s rearview mirror. We anticipate smaller, bolt-on acquisitions going forward but see Marvell’s focus now turning to organic growth and share gains. We believe the firm has a growing addressable market as next-generation and AI networks use heavier processing and optical content, and Marvell’s cross-selling into existing customers is in its early innings. We expect Marvell to continue investing heavily into R&D to defend its moat against the likes of Nvidia, Intel, Broadcom, and Cisco’s chip business.

Read more about Marvell International here.

ON Semiconductor

• Morningstar Price/Fair Value: 0.77
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Industry: Semiconductors

Onsemi is a supplier of power semiconductors and sensors focused on the automotive and industrial markets. ON Semiconductor is an affordable tech stock, trading at a 23% discount to our fair value estimate of $70 per share. The semiconductor company earns a narrow economic moat rating.

We believe Onsemi is a power chipmaker aligning itself to the differentiated parts of its portfolio in order to accelerate growth and margin expansion. We expect the firm to outpace the growth of its underlying markets over the next five years as it tailors its portfolio of chips and sensors to pursue secular trends toward electrification and connectivity that allow it to sell into new sockets. Onsemi is the top supplier of image sensors to automotive applications like advanced driver-assist systems, or ADAS, and its semiconductors enable power transfer and conversion in electric vehicles and renewable energy—all of which we expect to keep Onsemi’s sales growth above that of its underlying markets.

We think that Onsemi will be vulnerable to cyclicality in the long term but that its portfolio realignment will lend itself to more durable returns through a cycle. The firm’s increased focus on sticky verticals, as well as its differentiated sensor and silicon carbide technologies, contribute to our narrow economic moat rating. Onsemi’s bread and butter historically was in more commodity-like chips, but we expect the firm to focus on higher-value applications in the auto and industrial end markets going forward and in turn earn more-consistent returns on invested capital.

We expect Onsemi to focus on expanding margins over the medium term. Management has invested heavily in pruning and improving its manufacturing efficiency, and we expect it to see the fruits of these efforts. We also think the firm will continue to focus its investments on the auto and industrial markets, which are higher-growth and higher-margin than its legacy consumer and smartphone markets. We expect more cutting-edge silicon carbide chips to make up a greater mix of sales over the next five years, too. We think management faces execution risk in hitting its lofty goal of 53% non-GAAP gross margin but expect a focus on higher-margin verticals and an improved manufacturing footprint to get it to the low 50s over the next five years from a previous midcycle margin below 38%.

Read more about ON Semiconductor here.

Littelfuse

• Morningstar Price/Fair Value: 0.77
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Industry: Electronic Components

Littelfuse is a primary provider of circuit protection products (such as fuses and relays) into the transportation, industrial, telecommunications, and consumer electronics end markets. Littelfuse is an affordable tech stock, trading at a 23% discount to our fair value estimate of $295 per share. The electronic components company earns a narrow economic moat rating.

We view Littelfuse as a differentiated supplier of electrical protection into cars and industrial applications. While it is a smaller player than other competitors we cover in the components market, it has aligned its portfolio toward secular themes of safety, efficiency, and connectivity to pursue growth. We think Littelfuse’s best organic growth opportunities will come from vehicle electrification and charging infrastructure; battery electric vehicles require 5 times the circuit protection content of an internal combustion counterpart, and charging infrastructure presents a lucrative opportunity for the firm’s growing power semiconductor business.

Littelfuse’s passive components are small and inexpensive yet vitally important to the safe and continuous function of mission-critical systems in end applications. Circuit protection products safeguard against electrostatic discharge and overcurrent to prevent component failure and/or fire in cars, power grids, data centers, and manufacturing plants. Even though individual parts like fuses and relays don’t carry a hefty price tag, we think Littelfuse’s application expertise helps the firm stave off commoditization and creates sticky customer relationships.

We think Littelfuse will keep selling more content into ever-electrifying end products, especially as applications like cars and industrial equipment move into higher voltages. Higher voltages and new applications like wind and solar power offer a greater electrical protection content opportunity and new selling opportunities for the firm’s emerging silicon carbide technology. We expect Littelfuse’s organic growth to benefit from ample cross-selling between its relatively new semiconductor customers (largely acquired through its IXYS deal in 2018) and its electrical protection customers. Meanwhile, we expect Littelfuse to continue acquiring in line with the consolidating electronic components industry, as management aims to achieve half of its long-term top-line growth target of 10%-14% inorganically.

Read more about Littelfuse here.

Teradyne

• Morningstar Price/Fair Value: 0.77
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Wide
• Industry: Semiconductor Equipment & Materials

Semiconductor equipment and materials firm Teradyne rounds out our list of best tech stocks to buy. Teradyne provides testing equipment, including automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronics systems and wireless testing for devices. The stock is 23% undervalued relative to our fair value estimate of $115 per share.

Teradyne is a heavyweight supplier of automated test equipment for semiconductors, boasting market-leading capabilities that run the gamut of chips. It is one of two companies worldwide that can produce testers for the most cutting-edge semiconductors, thanks to robust engineering talent across hardware and software and a structural lead in organic investment. The firm is a vital partner to chipmakers across the industry and has impressively strong relationships with Apple and Taiwan Semiconductor. Teradyne’s market leadership exhibits itself in terrific margins, strong returns on invested capital, and a high market share. We give the firm a wide economic moat rating.

Beyond its top-tier capabilities, we think Teradyne is a strong operator. It appears to have found a good balance between organic investment in development and profitability, and it is a good generator of free cash flow despite its capital intensity. We also applaud Teradyne’s strong balance sheet, which shows a net cash position.

We expect Teradyne to see growth in the long term but to experience cyclicality given that it is exposed to the semiconductor market. In semiconductor testing, Teradyne will benefit from increasing complexity, specifically the expansion of advanced memory capacity and advancements to new architectures and smaller geometries in digital chips, like 3-nanometer platforms and gate-all-around transistors. We also expect domestic onshoring and capacity expansion to generate demand for the firm’s automated test equipment in the medium term. Teradyne is better exposed to the mobile phone and memory chip markets, with notably low exposure to GPU testing. We still expect Teradyne to see growth from artificial intelligence investment, as it has good exposure to high-bandwidth memory and custom AI accelerator customers.

We expect Teradyne to complement continued investment in chip testing with investment in the high-growth robotics market. We think the firm’s collaborative and autonomous robots will augment top-line growth over the next five years, and we don’t see this segment hurting organic investment in the core chip business.

Read more about Teradyne here.

Investors who would like to extend their search for top tech stocks can do the following:

• Review Morningstar’s comprehensive list of technology stocks to investigate further.
• Stay up to date on the technology sector’s performance, key earnings reports, and more with Morningstar’s technology sector page.
• Use the Morningstar Investor screener to build a short list of technology stocks to research and watch.
• Read the latest news about notable technology stocks from Morningstar senior analyst Dan Romanoff.