Tech Stocks to Watch in 2025: Potential for Decline

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TECHNOLOGY,STOCK MARKET,TECH STOCKS

This article analyzes the performance of tech stocks in 2024 and forecasts potential declines in 2025. It highlights Tesla and AppLovin as stocks that may see significant drops in price.

It is no secret that tech has been responsible for most of the market's gains this year. But that tech trade may not look the same in 2025 as favorites such as AppLovin and Netflix could actually take a hit. Investors piled money into the tech sector for the second straight year in 2024, particularly into the semiconductor industry and projected artificial intelligence beneficiaries.

The Nasdaq-100 index, which measures the performance of 100 of the largest Nasdaq-listed nonfinancial companies, is up roughly 29% this year, surpassing the S & P 500's 26% advance. The tech-heavy index's constituents include Apple , Nvidia , Broadcom and Tesla . Some of those tech names could decline next year after their massive runup, however. Using the CNBC Pro stock screener , we took a look at the consensus price forecasts of the companies in the Nasdaq-100 and found that the stocks below are projected to post negative returns over the next 12 months. Of the index, Tesla shares stand to lose the most. Analysts polled by LSEG have a consensus price target on the stock that forecasts a potential 35% decline. As of Monday's close, shares of the electric vehicle maker have jumped about 80% this year after doubling in 2023. Most of those gains have erupted since President-elect Donald Trump's election, which led to bets that CEO Elon Musk's advisory relationship with Trump and expectations of looser regulation under the new administration will ease Tesla's autonomous driving goals. Wall Street is looking to see if Tesla can boost its electric vehicle sales , get its unsupervised full self-driving software approved and put its robotaxis on public roads. AppLovin has jumped more than 765% this year, making it the best-performing name out of all tech companies valued at $5 billion or more, according to FactSet data. The online gaming and advertising stock has shown little signs of stopping, as shares are up nearly 165% this quarte

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