3 Tech Stocks to Buy in May 啐5: Cloud, Cybersecurity, and AI Lead the Way

The technology sector has faced turbulence in 2025, with trade policies, AI disruption, and macroeconomic headwinds testing investors’ resolve. Yet within this volatility, three stocks stand out for their resilience, undervalued multiples, and growth trajectories that defy market noise. Let’s dissect the case for Alphabet (GOOGL), The Trade Desk (TTD), and CrowdStrike (CRWD)—the top picks to buy in May.

Alphabet (GOOGL): The Undervalued Tech Titan

Alphabet’s Q1 2025 results underscore its dominance across key growth engines:
- Google Cloud: Revenue soared 28% year-over-year (YoY) to $9.1 billion, with operating income jumping to $2.1 billion, nearly doubling from a year earlier. This segment is now a profit machine, not just a cost center.
- Waymo: Its autonomous ride-hailing service hit 250,000 weekly paid rides, a fivefold increase since 2024, outpacing Tesla’s Autopilot efforts.
- AI Innovation: The launch of AI Overviews (with 1.5 billion monthly active users) signals a strategic shift to monetize its AI prowess.

Why Buy Now?
- Valuation: Alphabet’s P/E ratio of 18x is below its historical average of 22x, despite 16%+ annual earnings growth projections.
- Catalysts: The stock has dipped 23% from its 2024 high due to antitrust fears and AI competition (e.g., ChatGPT), but core businesses remain unshaken.
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Analysts at The Motley Fool argue that Alphabet’s cloud and AI investments position it to dominate the next wave of tech innovation.

The Trade Desk (TTD): A Contrarian Play on Ad Tech

The Trade Desk’s stumble in late 2024—when it missed revenue targets for the first time—sent its stock plummeting. But its Q1 2025 results offer a lifeline:
- Revenue Outlook: Guidance of $575 million for Q1 (up 17% YoY) is likely to be exceeded, as TTD has consistently beaten estimates.
- AI Edge: Its Kokai platform leverages AI to optimize ads without Alphabet’s dual role as both an advertiser and ad platform.
- Regulatory Tailwind: The U.S. antitrust ruling against Alphabet could reduce competition in digital advertising, widening TTD’s moat.

Why Buy Now?
- Valuation: The P/E ratio has dropped to 68x from 225x in December 2024, making it a bargain despite slower growth.
- Catalyst: Upcoming Q1 earnings on May 8 could catalyze a rebound if results beat expectations.
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The contrarian case here hinges on TTD’s ability to reclaim its ad tech crown—and its current price reflects excessive pessimism.

CrowdStrike (CRWD): Cybersecurity’s Steady Earnings Engine

In a market where tech stocks are buffeted by trade tariffs and cloud spending slowdowns, CrowdStrike stands out:
- Revenue Growth: 25% YoY in Q1 2025 (down from 40% in prior years, but still robust).
- Resilience: Only 33% of revenue comes from international markets, shielding it from trade-related headwinds. Its SaaS model ensures recurring cash flows.
- AI-Driven Security: Its Falcon platform uses AI to detect threats like ransomware and state-sponsored attacks, a necessity as cybercrime costs hit $10.5 trillion annually by 2025 (Cybersecurity Ventures estimate).

Why Buy Now?
- Valuation: While not cheap at a P/E of 42x, its 25% growth and 85% gross margins justify a premium.
- Defensive Play: Cybersecurity is a “must-have” category, insulated from macroeconomic cycles.
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Analysts see this as a stock to hold for the long term, with growth accelerating as cyber threats evolve.

Conclusion: A Trio of Growth Amid Chaos

The May 2025 tech landscape is a mix of challenges and opportunities. Alphabet’s cloud and AI dominance, The Trade Desk’s potential rebound, and CrowdStrike’s cybersecurity moat make them compelling buys at these valuations.

• Alphabet: A P/E of 18x vs. 16% earnings growth projections offers a 20% upside over 12 months.
• The Trade Desk: A P/E of 68x is reasonable if it returns to 20%+ growth post-earnings.
• CrowdStrike: Steady 25% growth and 85% gross margins position it as a 5-year winner in a $248 billion cybersecurity market.

All three align with the Motley Fool’s ethos of investing in companies that solve critical problems—whether it’s cloud computing, ad tech efficiency, or cybersecurity. For investors willing to look past short-term noise, these stocks could be the keys to outperforming in 2025 and beyond.

Final Buy Signals:
- Alphabet: Buy on dips below $100/share (current price ~$115).
- The Trade Desk: Accumulate ahead of May 8 earnings (current price ~$240).
- CrowdStrike: Hold for the long term at ~$200/share.

The tech sector’s volatility creates opportunities—these three stocks are where to capitalize.