Tech Investing in 2025: Emerging Trends and Market Opportunities
December 24, 2024
Read Time 3 MIN
As we enter 2025, technology continues to drive innovation and economic growth, shaping the future of industries and markets. Advancements in artificial intelligence (AI), semiconductors, cloud computing, cybersecurity, and renewable technologies offer exciting opportunities for investors. However, predicting the ultimate winners in such a dynamic environment is challenging, making a diversified investment strategy critical.
Economic and Technological Trends Driving Tech Investments
The global economy is expected to provide strong tailwinds for the tech sector in 2025. Supportive policies and increased government spending are incentivizing innovation across a wide range of industries, including AI, semiconductors, cloud computing, and renewable energy. Advances in real-time AI processing are expanding applications from autonomous vehicles to healthcare solutions. Cloud computing continues to underpin digital transformation, offering scalable solutions to businesses worldwide, while cybersecurity remains essential as digital threats evolve.
Edge Computing Market Value Worldwide
2019-2027 (In Billions)
Statista July 2024: For illustrative purposes only. Past performance is no guarantee of future results. Not intended as a forecast or prediction of future results.
Technology Behind the AI Boom
Semiconductors are increasingly critical to these technologies, driving demand for advanced chip designs to support edge devices and AI inference. At the same time, renewable technologies are being adopted at scale, reflecting a growing global commitment to sustainable energy.
Nuclear energy is emerging as a key player in the clean energy transition, with small modular reactors (SMRs) offering scalable and flexible power solutions. These developments align with the energy needs of AI and data centers, where consistent and reliable power is essential. The VanEck Uranium+Nuclear Energy ETF (NLR) provides exposure to this revitalized industry, positioning investors to benefit from its growth.
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Market Opportunities in Technology for 2025
The semiconductor industry remains a focal point, driven by the surging demand for AI applications and edge computing. Companies specializing in advanced chip designs are well-positioned for growth. The VanEck Fabless Semiconductor ETF (SMHX) offers targeted exposure to these innovators, capturing opportunities beyond traditional industry leaders.
Cloud computing and cybersecurity are foundational to the digital economy, enabling innovation while ensuring resilience against digital threats. These sectors, alongside AI and nuclear energy, are bolstered by global investment and policy support. The advent of SMRs (Small Modular Reactors), for instance, addresses energy needs for AI-driven industries, offering a sustainable solution to power-intensive technologies.
Globally, markets in Asia and North America are emerging as innovation hubs, spurred by private and public investment. Legislative efforts, such as the CHIPS Act in the U.S., exemplify how policy can reshape industries, drive competitive advantages, and strengthen supply chains.
Technology Revenue Worldwide by Segment
2018-2028 (In Billions)
Segment 2024: For illustrative purposes only. Past performance is no guarantee of future results. Not intended as a forecast or prediction of future results.
Diversifying Technology Investments: A Critical Strategy
While individual sectors like semiconductors, nuclear energy, and cloud computing offer significant promise, predicting the precise winners remains challenging. This is where thematic ETFs provide practical solutions. Funds like SMH, SMHX, and NLR allow investors to capture broad trends while minimizing risks associated with betting on specific companies. These ETFs deliver diversified exposure to the sectors driving the next wave of technological and industrial growth.
2025 is set to be a defining year for technology investing. The convergence of AI, semiconductors, cloud computing, and renewable technologies highlights the importance of a diversified strategy. By leveraging VanEck’s ETF offerings, investors can position their portfolios to benefit from the transformative potential of tech in the year ahead.
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This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
The principal risks of investing in VanEck ETFs and mutual funds include, but are not limited to, sector, market, economic, political, foreign currency, world event, index tracking, active management, social media analytics, derivatives, blockchain, commodities and non-diversification risks, as well as fluctuations in net asset value and the risks associated with investing in less developed capital markets. VanEck ETFs may also be subject to authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares risks. VanEck ETFs or mutual funds may loan their securities, which may subject them to additional credit and counterparty risk. ETFs or mutual funds that invest in high-yield securities are subject to subject to risks associated with investing in high-yield securities; which include a greater risk of loss of income and principal than funds holding higher-rated securities; concentration risk; credit risk; hedging risk; interest rate risk; and short sale risk. ETFs or mutual funds that invest in companies with small capitalizations are subject to elevated risks, which include, among others, greater volatility, lower trading volume and less liquidity than larger companies. Please see the prospectus of each Fund for more complete information regarding each Fund’s specific risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly-owned subsidiary of Van Eck Associates Corporation
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IMPORTANT DISCLOSURES
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
The principal risks of investing in VanEck ETFs and mutual funds include, but are not limited to, sector, market, economic, political, foreign currency, world event, index tracking, active management, social media analytics, derivatives, blockchain, commodities and non-diversification risks, as well as fluctuations in net asset value and the risks associated with investing in less developed capital markets. VanEck ETFs may also be subject to authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares risks. VanEck ETFs or mutual funds may loan their securities, which may subject them to additional credit and counterparty risk. ETFs or mutual funds that invest in high-yield securities are subject to subject to risks associated with investing in high-yield securities; which include a greater risk of loss of income and principal than funds holding higher-rated securities; concentration risk; credit risk; hedging risk; interest rate risk; and short sale risk. ETFs or mutual funds that invest in companies with small capitalizations are subject to elevated risks, which include, among others, greater volatility, lower trading volume and less liquidity than larger companies. Please see the prospectus of each Fund for more complete information regarding each Fund’s specific risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly-owned subsidiary of Van Eck Associates Corporation