As 2024 draws to a close, analysts at William Blair have revealed their top picks for 2025, featuring several tech companies including Broadcom (AVGO), Cloudflare (NET), and monday.com (MNDY). Let’s take a closer look at the top three stock picks for 2025 and the rationale behind these secret selections in more detail.
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A Transformational Year Ahead for AVGO
Analysts at William Blair believe that Broadcom’s $61 billion acquisition of VMware has exceeded expectations, with VMware’s Fiscal Q3 revenue growing by 24% due to increased pricing and a shift to subscription or software-as-a-service (SaaS) licensing. Additionally, while some customers “have been turned off by the acquisition, most larger organizations are feeling pressure to renew for another two to three years as they figure out how to migrate to alternatives.”
As a result, analysts don’t foresee significant customer churn in VMware’s customer base until 2026-2027. Meanwhile, AVGO’s custom chip business is thriving, with revenues from custom AI accelerator chips projected to reach between $60 billion and $90 billion by 2027.
Cloudflare Is Positioned for AI and Cybersecurity Growth
Cloudflare is thriving in AI, cybersecurity, and edge computing. Additionally, the content delivery network company is seeing strong demand for its products and its products are “favorable for scalable, small language model applications,” used in AI. As these applications evolve, the company is “well positioned to capture early market share and potentially grow.”
Monday.com Is a Platform for Durability
Cloud-based platform Monday.com is employing a “platform-first strategy” and is “investing in infrastructure and core capabilities first, and then organically launching new solutions on top of its platform.” Furthermore, other positives for the stock include new products like its customer relationship management (CRM) software and Dev (developer) platform.
Key Takeaway
It appears that the top stock picks by analysts at WIlliam Blair also aligns with the consensus rating from other Wall Street analysts as indicated by the TipRanks Stock Comparison tool. Overall, Wall Street analysts are upbeat about these stocks as they believe that these companies could be benefited by the growth in generative AI, new products and strategic deals.
