3 Technology Stocks That Are Great Buys This May

The technology industry, one of the most prominent sectors of the economy, started 2025 on a rough note. While it led the stock market in 2024, it couldn’t sustain the momentum this year. However, the sector is resilient and investors believe that the right tech stocks can generate solid returns once the market improves.

There is uncertainty about the tariffs, which have led to market volatility, but tech companies have impressed investors with strong quarterly results. Many of the tech stocks are artificial intelligence companies with a solid reputation and a strong history of returns. Investors love these stocks and are bullish on them. Let’s look at the top three technology stocks to buy this month. 

Nvidia 

Semiconductor king Nvidia (Nasdaq: NVDA) is a great buy before it announces results on May 29. The company has seen the stock rally after impressive results and a solid guideline. In the fourth quarter, the company reported a revenue of $39.3 billion, up 78% year-over-year, and an EPS of $0.89, up 82% year-over-year. 

For the first quarter, it is aiming for a revenue of $43.0 billion. Investors must not be surprised when they see a dip in profit due to the $5.5 billion write-off. The management had already stated about the impact of the prohibition on exports to China, and this will be reflected in the quarterly numbers.

With major tech companies committing to invest millions in AI, Nvidia is set to keep growing. The stock is exchanging hands for $132, and analysts expect to see an upside post the results announcement. It has soared 11% over the past five days after the US-China trade settlement. 34 analysts on Tipranks have a buy rating with an average price target of $164, a 26% upside. 

Further, CEO Jensen Huang is set to address the keynote at Computex, an AI conference in Taiwan, on May 19. Any announcement of new launches will push the stock higher. 

Nvidia’s Blackwell has been highly successful, and its next product, Blackwell Ultra, is set to start deliveries in the second half of the year. In 2026, it will introduce the next-gen graphics processing unit, Rubin. The steady innovation and expansion of its product portfolio has enabled Nvidia to remain at the top of the industry. Trump has recently sealed a deal for Nvidia to sell its Blackwell chips to the Saudi Arabian company Humain. 

Palantir Technologies 

Tech giant Palantir (Nasdaq: PLTR) has remained resilient despite the market volatility. The stock is trading at an all-time high today at $129 and is up 15.45% over the past five days. PLTR stock has soared 72% year-to-date and 119% in six months. This speaks a lot about the strength of the company. Amid the tariff concerns and uncertainty about the economy, several tech stocks were down, but not Palantir. 

The company’s aggressive growth is driven by AI, which has been a boon, and investors are bullish on its future. The company caters to large organisations in the government and private sector. In the first quarter of the year, Palantir closed 51 deals with customers for $5 million and about 31 deals of $10 million. It has seen a 71% year-over-year jump in the U.S. commercial revenue and a 45% year-over-year jump in the government sector. 

The current upside in tech stocks could be due to a possible deal with Saudi Arabia, granting access to the advanced semiconductors that are made using American chips. There could be another deal with the United Arab Emirates soon. While the deal does not specifically mention any AI company, CEO Alex Karp was present in Saudi Arabia along with President Trump and other leaders in tech. 

Considering the massive opportunity in the AI space, Palantir has massive upside potential. It is a great business, and the stock can keep going higher over the next five years. However, Palantir’s current valuation is sky high, but if you wait for the stock to become affordable, you could be waiting forever. Several catalysts are pushing AI stocks higher today, and Palantir is one of them. But it is also one tech stock you will never regret owning. 

Amazon

E-commerce giant Amazon (Nasdaq: AMZN), has already generated impressive returns for shareholders. Trading at $211, the stock is up 10% in the past five days and 12% in a year. However, it is down 4% year-to-date. The company is known for a wide range of products and services across different countries. It has adopted AI to improve consumer experience and expand growth prospects. 

As one of the biggest companies in the world, Amazon continues to generate impressive returns. In the recent quarter, it reported a revenue of $155.7 billion, a 9% year-over-year jump, and an operating income of $18.4 billion. The company generates the majority of its revenue from Amazon Web Services, which is a major growth area. In the quarter, it generated a revenue of $29.3 billion, up 17% year-over-year. AWS has the largest market share in the industry right now, and there is a lot of scope for expansion. Its dominance in the market has remained consistent over the past few years. 

The current relief in tariffs has had a positive impact on the stock. The news around U.S.-China trade has benefited Amazon, which sources a large part of its merchandise from China. This will benefit the company in the near term. The easing of tariffs will also reduce the cost pressure on the company’s advertising business and retail operations. 

Amazon’s second biggest revenue generator is its advertising business, which raked in $13.92 billion, which was up 19% year-over-year. I believe this is another segment where Amazon will keep winning. Analysts are bullish on the stock with an average price target of $240, a 13% upside, and a strong buy rating. 

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