Technology stocks have helped power the current bull market, which is now a little over two years old. With the average bull market lasting approximately five and a half years, this group should have some solid room to keep running.
Let's examine three tech stocks that look like no-brainer buys in this bull market.
1. Nvidia
In a world where computing power seems ever-increasing, Nvidia (NVDA -2.98%) remains the best company to take advantage of this phenomenon. The company is the leading producer of graphic processing units (GPUs). While originally designed to speed up graphics rendering in video games and animation, GPUs' ability to complete tasks much faster than central processing units (CPUs) has made these chips ideal for artificial intelligence (AI) training and inference.
Nvidia, meanwhile, was able to form a wide moat by being the first company to develop a software platform for programming GPUs for various tasks outside of graphics rendering. As such, this became the software platform on which developers learned to program GPUs. In the years since, the company has added AI-specific tools and libraries to further increase its moat.
But it is AI training's exponential need for more computing power that makes Nvidia a buy. The first version of ChatGPT was trained using 10,000 Nvidia GPUs, while newer AI models, such as Meta Platform's Llama 4, will use 160,000. Meanwhile, there is already talk that there will be 1 million GPU clusters in the near future.
There will be a lot of future demand for GPUs, which, along with its strong performance over the years, is why Nvidia remains a buy.
2. Salesforce
If the next stage of the AI rally is software, Salesforce (CRM -1.30%) is one of the best-positioned companies in this regard. With its customer relationship management (CRM) platform, the company has long established itself as a leader in front-office tasks. It has since moved into other areas, such as automation, analytics, and employee communication, through the acquisitions of Mulesoft, Tableau, and Slack.
The big opportunity for the company, though, is with its autonomous AI agents, called Agentforce. An AI agent is a software program that uses AI to interact with its environment, collect data, and perform tasks to achieve goals. Launched in October, the company said on its early December earnings call that it was seeing strong early adoption for the solution and had already closed 200 deals with the AI agents. Meanwhile, it had thousands of potential Agentforce deals in its pipeline.
Agentforce is a usage-based product that costs $2 per conversation, so the potential upside is huge as it becomes more widely adopted. For its part, the company has forecast having 1 billion AI agents deployed by the end of fiscal 2026 (ending January 2026).
Meanwhile, the company recently released Agentforce 2.0, which includes a no-code platform to help users build out their own tools as well as a library of prebuilt agent skills. Agentforce 2.0 will also be able to execute actions outside its CRM suite and across any app or workflow and will be integrated into Slack.
Image source: Getty Images.
With agentic AI -- where AI agents act autonomously without constant human oversight to complete tasks -- looking to be the next big potential AI development, Salesforce stock is a strong way to play this theme.
3. SentinelOne
A tech laggard in 2024, cybersecurity company SentinelOne (S -3.02%), nonetheless, has a big opportunity in front of it. The company's Singularity Platform uses AI to predict, monitor, and eliminate threats and can be deployed in public, private, or hybrid cloud environments.
It competes with CrowdStrike and its Falcon platform. CrowdStrike's outage earlier this year opened up an opportunity, which SentinelOne is just starting to take advantage of, with a large Fortune 50 customer and several government customers switching to its platform.
Meanwhile, the company is enjoying a nice boost by upselling its Purple AI solution, which helps analysts hunt complex security threats using only natural language prompts. SentinelOne has said it is the fastest-growing solution in its history.
Despite its lagging stock price in 2024, the company has demonstrated strong revenue growth, including 28% revenue growth last quarter. Meanwhile, it trades at less than half the price of CrowdStrike on a forward price-to-sales (P/S) basis (7.0 times versus 18.8 times) despite CrowdStrike having similar revenue growth (28% for SentinelOne versus 29% for CrowdStrike last quarter).
S PS Ratio (Forward 1y) data by YCharts. PS Ratio = price-to-sales ratio.
However, the biggest opportunity for the company and its stock will come in the second half of 2025 when enterprise PC vendor Lenovo will begin shipping its computers with SentinelOne's Singularity Platform pre-installed. Lenovo is the world's largest PC vendor, with about a 25% market share, and sold approximately 59 million PCs in 2023. This is just an enormous opportunity for a company the size of SentinelOne.
