The new year presents a golden opportunity for a fresh start, or even a reboot for your portfolio.
Regardless of whether you've been investing for a while or are just starting, it is a long-term process. It's a journey that often stretches years, even decades. Building wealth and achieving sustainable results in the stock market comes from many small moves that build on one another.
That said, which moves make the most sense right now? Here are five fantastic tech stocks, most of them trading at compelling valuations today. The best part? You can buy a share of all five stocks for roughly $1,000.
Image source: Taiwan Semiconductor Manufacturing.
1. Taiwan Semiconductor Manufacturing
Whether it's data centers or smartphones, technology requires GPUs and other specialized chips. Taiwan Semiconductor Manufacturing (TSM 4.28%) is the world's leading chip foundry. It's a company that manufactures chips for Nvidia and many others. It's so dominant that the next-closest foundry has a market share of less than 10%. That also makes Taiwan Semiconductor a key player in artificial intelligence (AI), as it builds most of the chips for it.
NYSE: TSM
Key Data Points
Business is booming for Taiwan Semiconductor as companies pour billions of dollars into AI data centers. Analysts estimate that the company will grow earnings by an average of nearly 29% annually over the next three to five years, making the stock a no-brainer buy at a price-to-earnings ratio of 29 times full-year 2025 earnings estimates.
2. Netflix
Streaming has overtaken cable and traditional broadcasting. Netflix (NFLX 0.06%) has grown with the trend, becoming a global streaming giant with over 300 million subscribers. Now, it's attempting a knockout blow to its competition, with a pending $82.7 billion deal to acquire Warner Bros. studio assets, as well as HBO and the HBO Max streaming service, from Warner Bros. Discovery.
Analysts currently anticipate 24% annualized long-term earnings growth, and Netflix could become even more powerful if the deal closes. The stock has slipped a bit following the acquisition announcement. It could be a dip worth buying. Netflix now has a P/E ratio of 37, a valuation that leaves room for more long-term price appreciation as the company continues to grow.
3. Palo Alto Networks
Data breaches are too costly for cybersecurity not to remain a hot growth trend. Palo Alto Networks (PANW +1.45%) is a leading cybersecurity company that specializes in network security, including next-generation firewalls, cloud security, and automated AI security solutions. Additionally, its pending $25 billion acquisition of CyberArk would introduce it to the identity security market.
NASDAQ: PANW
Key Data Points
Growth across the cybersecurity industry, the potential CyberArk acquisition, and the company's new platformization sales strategy have primed Palo Alto Networks for strong and sustainable growth. The stock isn't a bargain at 48 times full-year 2025 earnings estimates. Still, the company's expected 20% annualized earnings growth can quickly erode that premium, rewarding buy-and-hold investors over the coming years.
4. Duolingo
Learning is becoming increasingly digital. Duolingo (DUOL 3.57%) has proven that with its wildly popular language learning app. It essentially turns learning into an addictive game, racking up a whopping 135.3 million monthly active users. The company has replicated its model, expanding into math and chess.
The stock enjoyed a massive run over the past several years, but has plunged nearly 70% from its high after weak guidance in a recent quarter. The selling may have gone too far. The stock's forward P/E ratio is currently 21, and analysts expect earnings to grow by an average of more than 47% annually over the next three to five years. Duolingo has good odds at rewarding buyers from here if the company achieves anywhere near that growth.
5. Salesforce
Investors have fled software stocks due to concerns that AI poses an existential threat. Salesforce (CRM +2.45%) has felt this. The stock is down almost 30% from its peak. However, Salesforce is more than just one app or product. It's a digital ecosystem of mission-critical software applications and services, ranging from customer management to marketing and customer service, that more than 150,000 companies rely on.
NYSE: CRM
Key Data Points
Salesforce is leaning into AI as an opportunity, integrating AI automation and features to enhance its existing offerings. The company is maturing -- it only recently began paying a dividend. That said, analysts still call for 15% annualized earnings growth over the next three to five years. That makes the stock a strong buy at just over 22 times full-year 2025 earnings estimates.
