The technology sector is experiencing unparalleled growth, with innovations unfolding rapidly. This dynamic environment offers investors a wide range of opportunities. To successfully navigate it, it’s essential to pinpoint tech stocks that demonstrate potential and align with analyst forecasts.

Thus, investors could consider adding fundamentally sound tech stocks, such as Salesforce, Inc. (CRM), Adobe Inc. (ADBE), and QUALCOMM Incorporated (QCOM).

The application development software market is amid robust expansion, propelled by the growing appetite for software solutions across diverse sectors. As organizations continue to advance their digital transformation endeavors, the imperative demand for efficient and scalable application development software becomes increasingly apparent.

Fueled by the increasing development of infrastructure, global IT spending is projected to experience a significant rise in 2025. According to the latest forecast by Gartner, Inc., worldwide IT spending is expected to total $5.74 trillion in 2025, indicating an increase of 9.3% from 2024. 

Considering these factors, let’s take a look at the fundamentals of the three tech stock picks.

Salesforce, Inc. (CRM)

CRM provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company’s service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and artificial intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer support at scale. 

On December 17, CRM announced Agentforce 2.0: the newest version of Agentforce, the first digital labor platform for enterprises. It is a complete AI system for augmenting teams with trusted, autonomous AI agents in the flow of work. The new advances will allow entities to scale their workforce with customized agents capable of handling complex with even more precision and accuracy.

On November 20, CRM introduced agentic lifecycle management tools to automate Agentforce testing, prototype agents in secure Sandbox environments, and transparently manage usage at scale. The new Agentforce Testing Center will help companies roll out trusted AI agents with no-code tools for testing, deploying, and monitoring in a secure, repeatable way.

During the third quarter, which ended October 31, 2024, CRM’s total revenues grew 8.3% from the year-ago value to $9.44 billion. The company’s non-GAAP income from operations of $3.12 billion reflects a 14.9% increase from the previous year period. Also, its non-GAAP net income came in at $2.32 billion or $2.41 per share, up 12.2% and 14.2% year-over-year, respectively.

As per the company’s guidance, CRM expects revenue in the range of $9.90 billion and $10.10 billion, up 7% – 9% year-over-year in the fourth quarter.

Also, for the fiscal year 2025, the company raised its low-end revenue guidance to $37.8 billion to $38 billion, up 8% – 9% from the prior year. It has also raised its operating cash flow growth to a range of 24% to 26%.

Analysts expect CRM’s revenue and EPS for the fourth quarter (ending January 2025) to increase 8.1% and 14.2% year-over-year to $10.04 billion and $2.61, respectively. Moreover, the company topped the consensus revenue and EPS estimates in three of the trailing four quarters.

CRM’s stock has gained 26.7% over the past six months and 28.8% over the past year to close the last trading session at $330.53.

Based on 41 Wall Street analysts offering 12-month price targets for CRM in the last three months, the average target price is $395.69, indicating a 19.7% change from the last price, with a high forecast of $450 and a low forecast of $247.

CRM’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

CRM has a B grade for Quality and Momentum. It is ranked #22 out of 127 stocks in the B-rated Software – Application industry.

Beyond what is stated above, we’ve also rated CRM for Stability, Growth, Sentiment, and Value. Get all CRM ratings here.

Adobe Inc. (ADBE)

ADBE operates as an international diversified software company. The company operates through three segments: Digital Media; Digital Experience; and Publishing and Advertising. The company offers products, services, and solutions that allow individuals, teams, and enterprises to create, publish, and promote content.

On December 10, ADBE and Box, Inc. (BOX), the leading Intelligent Content Management platform, announced a partnership to redefine how digital media is managed, created, and shared in the enterprise. With Adobe Express as the default image editor in Box, customers can easily create more engaging content without leaving Box’s secure platform.

Adobe Express brings the best of Adobe’s industry-leading creative tools into an app everyone can use. Powered by Firefly AI and built with easy features, the solution is designed to be commercially safe so enterprises can use it confidently.

On December 3, ADBE and Amazon’s Amazon Web Services (AWS) expanded their strategic partnership to make Adobe Experience Platform (AEP) available on AWS, which empowers brands to deepen customer relationships through precise personalization. AEP delivers an actionable view of customers across every channel, with AI-driven insights ensuring timely and relevant customer experiences.

In the fourth quarter that ended on November 29, 2024, ADBE’s total revenue rose 11.1% from the prior year’s quarter to $5.61 billion, and its gross profit increased 13% year-over-year to $4.99 billion. The company’s non-GAAP operating income of $2.60 billion indicates growth of 10.8% over the previous year.

Furthermore, the company’s non-GAAP net income grew 8.8% and 12.6% from the year-ago value to $2.13 billion and $4.81 per share, respectively.

For the fiscal year 2025, ADBE projects total revenue between $23.30 billion and $23.55 billion. Its Digital Media segment revenue is expected to be between $17.25 billion and $17.40 billion, and its Digital Experience segment revenue is expected to be between $5.80 billion and $5.90 billion. Also, the company’s non-GAAP EPS is set to be between $20.20 and $20.50.

Further, for the first quarter of fiscal year 2025, the company expects total revenue of $5.63 billion – $5.68 billion, and its non-GAAP EPS is expected to range from $4.95 to $5.00.

Street expects ADBE’s revenue and EPS for the first quarter (ending February 2025) to increase 9.3% and 11% year-over-year to $5.66 billion and $4.97, respectively. Moreover, the company has surpassed the consensus EPS and revenue estimates in all four trailing quarters, which is impressive.

ADBE’s stock has increased marginally intraday to close the last trading session at $431.18.

Based on 26 Wall Street analysts offering 12-month price targets for ADBE in the last three months, the average target price is $602.15, indicating a 39.7% change from the last price, with a high forecast of $703 and a low forecast of $450.

ADBE’s robust fundamentals are reflected in its POWR Ratings. It has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.

The stock has an A grade for Quality and a B for Growth and Momentum. ADBE is ranked #11 out of 127 stocks in the Software – Application industry.

Click here to access the additional ADBE ratings (Sentiment, Value, and Stability).

QUALCOMM Incorporated (QCOM)

QCOM engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI).

QCOM’s revenues for the fourth quarter (ended September 29, 2024) increased 18.7% year-over-year to $10.24 billion. The company reported a non-GAAP operating income of $3.51 billion, indicating a 31.4% growth from the prior year’s quarter. QCOM’s non-GAAP net income came in at $3.04 billion, up 33.3% year-over-year, while its net income per share grew 33.2% from the prior-year quarter to $2.69.

Street expects QCOM’s revenue for the fiscal first quarter (ended December 2024) to increase 10.4% year-over-year to $10.96 billion. Moreover, its EPS estimate of $2.95 for the same period indicates a 7.4% year-over-year growth. In addition, it surpassed the consensus revenue and EPS estimates in each of the trailing four quarters, which is excellent.

The stock gained 14% over the past month, closing the last trading session at $159.85.

Based on 22 Wall Street analysts offering 12-month price targets for QCOM in the last three months, the average target price is $199.88, indicating a 25% change from the last price, with a high forecast of $250 and a low forecast of $160.

QCOM’s POWR Ratings reflect bright prospects. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system.

The stock has an A grade for Quality and a B for Value. QCOM is ranked first out of 90 stocks in the Semiconductor & Wireless Chip industry.

In addition to the POWR Ratings highlighted above, one can access QCOM’s ratings (Growth, Momentum, Stability, and Sentiment) here. 

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CRM shares were trading at $325.86 per share on Tuesday afternoon, down $4.67 (-1.41%). Year-to-date, CRM has declined -2.53%, versus a 0.76% rise in the benchmark S&P 500 index during the same period.

About the Author: Nidhi Agarwal

Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities. More...

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