Top 2 Tech Stocks You'll Regret Missing This Month

As the tech sector continues to thrive, investors are always on the lookout for the next big opportunity. With the global IT spending forecast to increase by 9.3% in 2025, driven by investments in AI, cloud infrastructure, and IoT, it's crucial to stay informed about the most promising tech stocks. In this article, we'll highlight two tech stocks that you might regret missing this month.



1. Taiwan Semiconductor Manufacturing (TSM)
Taiwan Semiconductor Manufacturing, the world's largest dedicated independent (pure-play) semiconductor foundry, is a standout performer in the tech sector. TSM manufactures chips for various tech companies like Nvidia, Apple, and Qualcomm, ensuring a steady stream of revenue from these high-profile clients. The company's advanced manufacturing capabilities, with its 3-nanometer (nm) and 5nm chips being the major contributors to its total revenues, position it well for future growth. TSM is also developing 2nm chips, expected to hit the market by 2027. The increasing demand for smartphones and AI, along with the adoption of TSM's 3nm chips, is expected to boost the company's sales. In June, TSM made a deal with its customers to increase the prices of its 3nm chips by 5% next year, conditioned on timely supply and order fulfillment. With a forward P/E ratio of 12.27, TSM is undervalued compared to its historical averages and industry peers, presenting an attractive investment opportunity.



2. Datadog (DDOG)
Datadog, a leading provider of cloud observability and monitoring solutions, is another tech stock poised for significant growth. The company's revenue increased by 27% in the first nine months of 2024, with its fourth-quarter guidance suggesting a 25% improvement over its 2023 revenue. Datadog's earnings are forecast to increase by 34% this year to $1.77 per share. The company's strong revenue growth is driven by the increasing adoption of cloud services and the growing demand for cloud observability and monitoring solutions. Gartner forecasts a 21.5% increase in public cloud spending by end-users in 2025, up from the 19.2% growth this market recorded last year. This growth in public cloud spending could give Datadog's already impressive growth a nice boost. With a forward P/E ratio of 32, Datadog is undervalued compared to its historical averages and industry peers, making it an attractive investment opportunity.



In conclusion, Taiwan Semiconductor Manufacturing (TSM) and Datadog (DDOG) are two tech stocks that investors should consider adding to their portfolios this month. Both companies are well-positioned to capitalize on the growing demand for AI hardware, cloud services, and cloud observability and monitoring solutions. With undervalued valuations compared to their historical averages and industry peers, these tech stocks offer compelling investment opportunities for long-term growth.