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3 Tech Stocks Worth Buying Despite Sector Volatility

By Investing.com (Jesse Cohen)Stock MarketsJan 31, 2025 09:07AM ET
www.investing.com/analysis/3-tech-stocks-worth-buying-despite-sector-volatility-200656843
3 Tech Stocks Worth Buying Despite Sector Volatility
By Investing.com (Jesse Cohen)   |  Jan 31, 2025 09:07AM ET
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  • The AI-fueled tech rally has finally shown signs of slowing down.
  • However, not all tech stocks are struggling, with some displaying strong performances amid the current bout of market volatility.
  • With robust financial health and growth trajectories, I’ll highlight three tech stocks that are worth owning amid the current backdrop.
  • Looking for actionable trade ideas to navigate the current market volatility? Unlock access to InvestingPro for 50% off!

The technology sector has experienced heightened volatility in recent sessions, with many high-growth stocks facing sharp selloffs amid shifting market conditions.

Nasdaq Composite Chart
Nasdaq Composite Chart

Source: Investing.com

However, not all tech stocks are struggling. Some companies continue to show resilience, benefiting from strong tailwinds and demonstrating impressive relative strength compared to their peers. Among them, Qualcomm (NASDAQ:QCOM), KLA Corporation (NASDAQ:KLAC), and CrowdStrike (NASDAQ:CRWD) stand out as three tech stocks worth buying.

Each of these companies is well-positioned to thrive despite the recent market turbulence, supported by powerful industry trends and strong fundamentals.

1. Qualcomm

Qualcomm, a leading semiconductor company, remains a dominant force in the mobile chipset market, supplying processors for premium smartphones and emerging AI-powered devices. The San Diego-based chipmaker is poised to benefit from the upcoming 5G cycle, growing demand for AI-enabled smartphones, and its expanding presence in automotive and IoT (Internet of Things) markets.

Qualcomm Price Chart
Qualcomm Price Chart

Source: Investing.com

Despite sector-wide pressure, Qualcomm’s stock has shown resilience, holding up better than many of its peers. Shares have posted an impressive 12.5% year-to-date return in 2025, showcasing strong momentum.

Investors remain optimistic about their AI-powered Snapdragon chips, which are expected to drive future revenue growth as more mobile devices integrate AI capabilities. Additionally, Qualcomm’s strong relationship with Apple (NASDAQ:AAPL) and other major smartphone makers should provide a steady revenue stream, even in uncertain economic conditions.

QCOM demonstrates a solid Financial Health Score of 2.98 (rated as GOOD), showing resilient fundamentals. Furthermore, Qualcomm’s fair value estimate of $193.24 suggests a 12.4% upside from current levels.

Qualcomm Fair Value
Qualcomm Fair Value

Source: InvestingPro

Pro tip: Keep an eye on Qualcomm's diversification efforts, especially in automotive and IoT markets, as these could be significant growth drivers moving forward. The company's strong return on equity of 42.4% and a healthy dividend yield of 2.0% make it an interesting option for both growth and income investors.

2. KLA Corporation

KLA Corporation is one of the most critical players in the semiconductor supply chain, specializing in process control and yield management solutions. As global semiconductor manufacturers ramp up production, demand for KLA’s advanced inspection and metrology equipment is expected to remain strong.

KLA Corp Price Chart
KLA Corp Price Chart

Source: Investing.com

KLAC stock has outperformed many of its semiconductor peers since the start of the new year, reflecting confidence in its long-term growth prospects. Shares have delivered an impressive 17.8% YTD return so far in 2025.

KLA maintains a robust Financial Health Score of 2.85 (rated as GOOD). The semiconductor equipment powerhouse stands to benefit as companies like Taiwan Semi, Intel (NASDAQ:INTC), and Samsung increase their capital expenditures on semiconductor fabrication technology.

Additionally, KLA’s high-margin business model and consistent revenue growth make it an attractive investment in a turbulent tech sector.

KLA Corp Fair Value
KLA Corp Fair Value

Source: InvestingPro

Pro tip: Watch KLA's exposure to the High Bandwidth Memory (HBM) applications in the DRAM sector, as this could be a significant growth catalyst. The Milpitas, California-based company’s remarkable return on equity of 87.8% and projected revenue growth of 17.6% for FY2025 indicate strong operational efficiency and growth potential.

3. CrowdStrike

With the increasing number of cyber threats and data breaches, cybersecurity remains one of the most promising growth sectors in technology. CrowdStrike, a leader in cloud-based cybersecurity solutions, is well-positioned to capitalize on rising enterprise demand for advanced threat detection and prevention.

CrowdStrike Price Chart
CrowdStrike Price Chart

Source: Investing.com

Even amid broader tech sector weakness, CrowdStrike has remained relatively strong as it trades near all-time highs. CRWD stock has achieved an outstanding 16% YTD return thus far in 2025, signaling investor confidence in the company’s ability to sustain growth.

CrowdStrike boasts the highest Financial Health Score among the three at 3.00 (rated as GOOD). With enterprises continuing to invest in security solutions to combat cyber threats, the information security specialist is well-positioned for long-term success.

Furthermore, the growing adoption of its AI-driven security solutions and Charlotte AI offering gives CrowdStrike a competitive edge, helping it maintain strong revenue growth and customer retention rates.

CrowdStrike Fair Value
CrowdStrike Fair Value

Source: InvestingPro

Pro tip: Pay attention to CrowdStrike's platform consolidation strategy and its ambitious $10 billion ARR target by FY2031. Despite a recent outage causing a $60 million subscription revenue headwind in H2 FY2025, the Austin, Texas-based security software company maintains impressive gross retention rates of 98% and targets a 30% operating margin by FY2029.

Conclusion

While the broader technology sector remains volatile, Qualcomm, KLA Corporation, and CrowdStrike stand out as three strong investment opportunities thanks to their relative strength, strong fundamentals, and exposure to key industry tailwinds.

Whether it’s AI-driven chip growth, semiconductor expansion, or increasing cybersecurity demand, each of these companies is positioned to outperform in the current market environment.

For investors looking to add resilient tech stocks to their portfolios, these three companies offer solid potential for gains amid sector turmoil.

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New Year Sale

Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).

I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies' financials.

The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.

Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.

3 Tech Stocks Worth Buying Despite Sector Volatility
 

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3 Tech Stocks Worth Buying Despite Sector Volatility

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Comments (3)
Mako Muney
Mako Muney Feb 01, 2025 4:04AM ET
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One of your best presentations, TY!
Cambro Jr
Cambro444 Jan 31, 2025 12:16PM ET
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Amazing article. Thank you.
James Promise
James Promise Jan 31, 2025 11:32AM ET
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thanks for the insight....
 
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