Tech Stocks Set to Benefit from Increasing IT Spending

Positive momentum in tech stocks is anticipated as IT spending soars. Analysts predict Taiwan Semiconductor and Datadog to capitalize on this growth with strong revenue performance.

Date: 14-01-2025

AI Rating: 8

Earnings Per Share (EPS)
Taiwan Semiconductor Manufacturing (TSMC) is projected to achieve earnings of $9.05 per share in 2025, an increase of 29% from previous figures. For Datadog, the EPS is forecasted to grow by 34% this year to $1.77 per share, indicating strong performance.
Revenue Growth
TSMC reported a 34% revenue increase for 2024 and is expected to see a further 26% growth in 2025, driven by high demand for its chips from major players like Nvidia and Qualcomm. Datadog's revenue also showed a 27% increase in the first nine months of 2024 and is projected to reach $2.66 billion by the end of the year, marking a 25% growth from 2023.
Market Trend
Global IT spending is anticipated to rise by 9.3% in 2025, supporting the growth trajectory of these companies. Software spending, particularly in AI-related projects, is projected to increase by 14%, while cloud service spending is expected to rise by 21.5%. This environment creates a favorable backdrop for TSMC and Datadog, highlighting their potential for substantial revenue and earnings growth
Conclusion
Given the robust earnings expectations and revenue growth, TSMC and Datadog are well-positioned to leverage the expanding IT spending and AI adoption. Investors might see positive movements in their stock valuations, backed by these solid forecasts.

Stocks: TSM DDOG AMD NVDA AAPL QCOM AVGO MU MRVL