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Investing.com -- The technology sector continues to offer compelling investment opportunities as we head into 2025, with several companies positioned to capitalize on artificial intelligence, cloud computing, and digital transformation trends.
Mizuho Securities recently highlighted their top picks in the tech space, identifying companies with strong growth potential and competitive advantages. Here’s a closer look at the seven standout tech stocks in their analysis.
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Mizuho sees AWS reacceleration as a key driver for Amazon, with massive capital expenditures from the past 18 months expected to yield results in late 2025 and 2026. The company’s strength in AI inference computing and plans to double current capacity by 2027 position it well as GenAI applications proliferate.
Retail margins should improve through automation in fulfillment centers and logistics architecture improvements, supported by rapid growth in advertising. Mizuho has set a price target of $315 based on a blend of GAAP P/E and sum-of-the-parts valuation.
Recently, Amazon reported that its Amazon Web Services (AWS) revenue accelerated to 20.2% year-over-year growth in the third quarter of 2025, with a reported backlog of $200 billion. The company also completed a multi-tranche bond offering totaling nearly $15 billion.
Described as the "best-in-class" online travel agency globally, Trip.com has a structural advantage in China’s outbound travel market and a differentiated strategy in Asia.
With outbound travel now contributing mid-teens of revenue compared to over 20% pre-COVID, Mizuho sees healthy runway for margin-accretive growth as outbound volume scales and international expansion gains traction.
The company’s cross-selling of high-margin inventory and stable customer acquisition costs make outbound structurally profitable. Mizuho’s price target is $81, based on 18x 2026E EBITDA.
Trip.com reported strong third-quarter 2025 results, with revenue growing 16% year-over-year to $18.34 billion, exceeding consensus forecasts. The company’s diluted earnings per share also significantly surpassed expectations.
Mizuho believes Robinhood has captured the zeitgeist of a generation through its high-quality platform, engaged user base, rapid product development, high operating leverage, and focus on profitable growth. The company continues to implement new products like retirement accounts and the Gold Card, which are gaining traction. International expansion in the UK and planned launch in Asia represent the next catalyst. Mizuho’s price target is $145, valuing the company at 23x FY27E revenue.
Robinhood announced record third-quarter results for 2025, with revenue growing 100% year-over-year. The company also reported that its total platform assets reached $343 billion at the end of October, a 115% increase from the previous year.
S&P Global (NYSE:SPGI)
S&P Global’s credit rating agency is highlighted as a high-quality business with a take-rate model on global debt issuance, strong competitive moat, consistent pricing power, and strong operating leverage. Mizuho expects recent technology investments to result in greater profitability, with an attractive medium-term issuance environment.
Market Intelligence growth is projected to accelerate to high single digits over the next year. Mizuho’s price target is $657, using a 33x P/E multiple on CY26E adjusted EPS.
S&P Global announced a new share repurchase program for up to 30 million shares and completed its acquisition of ORBCOMM’s Automatic Identification System (AIS) business. The company also rebranded its Commodity Insights division to S&P Global Energy.
Broadcom remains an industry leader with strong profitability and free cash flow growth, benefiting from key AI tailwinds for its networking and custom ASIC business. Mizuho sees AI revenue potentially growing to approximately $68 billion by FY27, up more than five times versus FY24.
With five ASIC customers already signed up and additional potential partnerships, Broadcom is well-positioned to capture share in the custom ASIC market. Mizuho’s price target is $435, representing 46.6x FY26E EPS.
In a recent development, Broadcom is believed to have secured Anthropic as a fourth major AI customer, according to Mizuho. The company also unveiled its new Brocade X8 Directors, the industry’s first 128G Fibre Channel platforms designed for enterprise AI applications.
Mizuho believes Atlassian’s two-pronged approach of next-gen technology and improved cloud-only products will drive data center to cloud migrations over the next 2-3 years.
The company is difficult to compete against due to strong core products, tight integration, customer loyalty, a thriving marketplace, and a unique operating model. Mizuho’s price target is $245, based on a DCF model reflecting cash flows through FY35.
Atlassian reported better-than-expected cloud revenue in its fiscal first quarter of 2026 and also completed the acquisition of engineering intelligence company DX.
Autodesk’s new transaction model and growth execution are expected to drive upside, with management projecting operating margin expansion from 37% in FY26 to 41% in FY29.
Multiple growth drivers support sustainable expansion, including higher store conversions, improved renewal rates, stronger partner opportunities, and new monetization models. Mizuho’s price target is $375, based on FY29E EV/FCF multiple of approximately 35x.
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