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3 High-Growth Tech Stocks to Buy Now: AI, Cybersecurity, and Cloud Dominance in May

Clyde MorganSaturday, May 3, 2025 5:49 am ET

75min read

The tech sector remains a battleground for innovation, with AI, cybersecurity, and cloud infrastructure driving the next wave of growth. In May 2025, investors are seeking companies that combine robust fundamentals, scalable business models, and catalysts to outperform in a volatile market. Here are three stocks positioned to capitalize on these trends: Broadcom (AVGO), Meta Platforms (META), and CrowdStrike (CRWD).

1. Broadcom (AVGO): The AI Semiconductor Leader

Broadcom’s dominance in semiconductors, cybersecurity, and cloud infrastructure positions it as a critical player in the AI revolution. Its AI-focused chips, used in data centers and edge devices, have tripled in sales since 2019, now accounting for 25% of revenue. The company’s financials are equally compelling:
- Growth: Revenue and adjusted EBITDA grew at 18% and 20% CAGR from 2019 to 2024. Analysts project 17% and 21% CAGR through 2027.
- Valuation: Trading at 23x 2025 EBITDA, AVGO is undervalued relative to its growth trajectory.

Why Now? Broadcom’s acquisitions in cybersecurity (e.g., VMware’s security division) and cloud software amplify its recurring revenue streams. Its $2.9B AI chip revenue in 2024 alone underscores its strategic bets paying off.

2. Meta Platforms (META): Social Media’s AI-Driven Evolution

Meta’s $3.43B daily active users provide a data goldmine for AI-driven ad targeting and content personalization. Its Reels platform competes directly with TikTok, while its metaverse investments aim to redefine virtual interaction. Key metrics:
- Growth: Revenue and EPS grew at 18% and 30% CAGR from 2019 to 2024. Analysts forecast 13% revenue CAGR through 2027.
- Valuation: At 22x forward earnings, META trades at a discount to its peers despite its global scale.

Why Now? META’s ad revenue is surging as Chinese gaming and e-commerce firms ramp up spending. Additionally, its AI labs (e.g., Llama series) are advancing beyond chatbots to enterprise tools, unlocking new revenue streams.

3. CrowdStrike (CRWD): The Cloud Security Disruptor

CrowdStrike’s cloud-native Falcon platform is reshaping cybersecurity, with 67% of customers using five or more modules—a 100% increase since 2020. Its subscription model ensures recurring revenue, a rarity in tech:
- Growth: Revenue grew at 52% CAGR from 2020 to 2025, with EPS rising 95%. By 2028, revenue CAGR is expected to hit 23%, and GAAP net income could triple.
- Valuation: At 21x 2025 sales, CRWD’s premium is justified by its cross-selling potential and legacy vendor disruption.

Why Now? With 700+ customers in high-growth sectors like finance and healthcare, CrowdStrike is a must-own name as cyber threats evolve. Its recent partnerships with cloud providers (e.g., AWS) further solidify its ecosystem dominance.

Risks and Considerations

While these stocks offer strong upside, risks loom:
- Regulatory Headwinds: Meta faces scrutiny over data privacy, while Broadcom’s semiconductor sales could slow if trade tensions escalate.
- Valuation Pressures: High-growth firms like CRWD must sustain their CAGRs to justify current multiples.

Conclusion: A Winning Trio for May

Broadcom, Meta, and CrowdStrike are the quintessential “screaming buys” for May 2025, backed by irrefutable data:
- AVGO’s AI chip revenue is tripling annually, with 17% revenue growth projected until 2027.
- META’s user base and ad revenue are expanding, supported by AI-driven monetization.
- CRWD’s cross-selling model and 23% revenue CAGR through 2028 make it a cybersecurity leader.

These stocks align with the tech sector’s core growth drivers—AI, cybersecurity, and cloud—while offering a balance of valuation and momentum. Investors ignoring these names risk missing the next phase of innovation.

In a market hungry for growth, these three are the engines to bet on.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.