As the market enters the second half of 2025 near record highs, investors looking beyond mainstream mega-cap names have a wealth of opportunities too diversify thier portfolios with high-potential tech stocks. Here are five standout Nasdaq-listed companies – Cisco, Fortinet, Shopify, Monolithic Power Systems, and Jabil Circuit – poised for further upside, offering a blend of innovation, undervaluation, and exposure to high-growth sectors like cybersecurity, e-commerce, AI, and networking.

Investors are increasingly seeking opportunities outside of the dominant tech giants, and these five companies present compelling options for growth and diversification. Each benefits from distinct secular trends and demonstrates strong financial health,making them attractive “Buy” candidates as the year progresses.

Cisco Systems may not be the fastest-growing tech company, but its extraordinary 50% year-on-year gain demonstrates its resilience as it strategically pivots toward software and recurring revenue streams. The company is actively transforming itself into a leader in AI-driven networking and security, a move that has garnered praise from industry analysts.

Investors are drawn to Cisco’s stability, consistent dividend payments, and proven ability to adapt to evolving market conditions. Trading at a forward Price-to-Earnings (P/E) ratio of around 17, Cisco appears substantially undervalued compared to its peers, offering a compelling combination of growth potential and value. Its current dividend yield of approximately 2.5% further enhances its appeal for income-focused investors.

Did you know? – Cisco’s shift to software and recurring revenue is key. this model provides more predictable income than hardware sales. It also allows for continuous updates and improvements, keeping Cisco competitive in a fast-changing market.

Fortinet, a leading provider of cybersecurity solutions, stands out due to its undervaluation and robust growth prospects. The company’s stock reached a record high of $114.82 in February, with a remarkable 67.9% gain over the past year. Despite this impressive performance, Investing.com’s AI-backed models suggest it remains undervalued, with a ‘Fair Value’ of $112.30, indicating a potential 9.6% upside from recent levels.

As enterprises continue to bolster their digital defenses in response to escalating AI-driven threats and increasingly stringent regulatory demands, Fortinet is well-positioned to benefit. Its comprehensive product suite, expanding service margins, steady revenue growth, and healthy free cash flow solidify its position as a “Strong Buy.”

Reader question: – What cybersecurity trends do you see impacting Fortinet’s growth? Are there specific threats or regulations that will drive demand for their products? Share your thoughts in the comments.

Shopify has experienced robust growth,increasing 70.5% over the last 12 months, fueled by the continued expansion of e-commerce and increasing adoption by merchants globally. Investors are attracted to the company’s strong financial health, consistent double-digit revenue growth, and its ability to successfully monetize AI-powered tools for its merchant base.

Shopify’s international reach, robust free cash flow margins, and positive analyst consensus reinforce its leadership in the e-commerce infrastructure space.As digital retail continues to evolve,Shopify’s ongoing platform upgrades and strategic partnerships position it for continued growth in the latter half of 2025. Currently trading at a forward P/E ratio lower than its historical average, Shopify presents a compelling entry point for growth-oriented investors.

Monolithic Power Systems has consistently outperformed, delivering a 26.7% return in the second quarter, driven by its dominance in high-efficiency power solutions and growing optimism surrounding its exposure to the AI and automotive sectors. Despite competition from industry giants like Nvidia, Monolithic’s specialized chips for power-efficient systems are in high demand as data centers and electric vehicle production scale up.

The company’s relentless focus on innovation, coupled with margin expansion, is attracting meaningful institutional investment. Secular trends in electrification and AI infrastructure suggest Monolithic Power’s growth trajectory remains strong as H2 2025 begins. Its continued investment in Research and Development (R&D) ensures its competitiveness in next-generation technologies.

Pro tip: – When evaluating tech stocks,consider their R&D spending. High R&D often signals a commitment to innovation. This can lead to a competitive edge and long-term growth, especially in fast-moving sectors like AI.

Jabil is experiencing a surge in growth, up an impressive 99.6% in the past year, capitalizing on the increasing demand for advanced manufacturing and hardware across diverse industries. The company’s diversified client base,spanning electronics to healthcare,and its agility in adopting AI-driven automation have set it apart.

Analysts anticipate further upside as Jabil continues to secure new contracts and improve its margin profile, making it a compelling “strong Buy” as the second half of 2025 commences. Trading at a forward P/E ratio of approximately 20, Jabil is considered undervalued relative to its growth potential, with analysts forecasting 15% Earnings Per Share (EPS) growth for 2025, driven by strong demand for its manufacturing expertise in high-growth sectors like AI servers and electric vehicles.

Each of these five tech companies is well-positioned to maintain its momentum into late 2025, supported by long-term growth trends in cybersecurity, e-commerce, AI infrastructure, networking, and global manufacturing. For investors seeking tech exposure beyond the mega-caps, these stocks offer a compelling combination of innovation, financial strength, and clear catalysts for further upside.

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At the time of writing, I am long on the S&P 500 and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY) and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG) and Invesco S&P 500 Equal Weight ETF (RSP). I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic habitat and companies’ financials. The views discussed in this article are solely the opinion of the author and should not be taken as investment advice. Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.

while the five Nasdaq stocks highlighted above offer compelling entry points, a robust investment strategy requires continuous refinement. Knowing where to start helps to effectively manage risks and capitalize on market opportunities.

Diversification is key to minimizing risk and maximizing returns within a volatile market. Consider how sector weighting can complement existing holdings. For example, exposure to both established companies like Cisco and emerging players like Monolithic Power Systems can provide a balanced approach allowing you to ride diversified waves within the AI infrastructure space.

Further, understanding market sentiment is crucial. Monitoring analyst ratings, institutional investment trends, and any potential impact that geopolitical events may have on the industry is essential for informed decision-making. Stay informed by analyzing each company’s earnings reports and investor presentations, watching for insights on competitive advantages, strategic pivots, and expansion plans.

Is now a good time to invest in tech stocks? Yes, despite existing record highs, opportunities abound for investors seeking growth and exposure to long-term technology trends, though it’s crucial to conduct a thorough risk assessment aligned with market conditions. What shoudl investors consider before investing in tech stocks? Investors should assess the company’s business model, financial health, competitive landscape, and growth potential, and compare it with its industry counterparts.

By implementing these strategies, investors can enhance their ability to make informed decisions. Remember, the markets are unpredictable. That’s why it’s necessary to be adaptable. The ability to adjust to ever-changing environments provides a strong foundation for navigating market fluctuations. The result is building a portfolio that can generate sustainable returns over the long run.

market dynamics always evolve quickly. This necessitates a disciplined and yet flexible approach. Take active steps to be agile with a diversified portfolio,staying well-informed,and effectively managing your overall risk exposure.