In this article, we discuss the fastest growing tech stocks to invest in. The global tech sector is entering a period of concentrated, software‑driven growth that isn’t just bigger than the last cycle, it’s structurally different. Worldwide IT spending is projected to hit roughly $5.7 trillion in 2025, but the composition of that spending matters far more than the headline number. Hardware’s share continues to compress, while software, cloud services, AI infrastructure, and enterprise platforms are absorbing the lion’s share of new budgets. Gartner estimates that software alone will clear $1 trillion in annual spend this year, growing at roughly 14% year-over-year, while cloud-related services are on track to exceed $2.3 trillion by 2030. This isn’t incremental digitization anymore; we’ve crossed into systemic dependence.
Three structural forces are driving this acceleration. First, AI is collapsing old cost structures across sectors, and enterprises are racing to build competitive moats. IDC expects global AI investment to compound at approximately 29% annually through 2028, which effectively makes software the default delivery channel for intelligence.
Second, the data explosion is reaching a critical scale. Global data creation is expected to reach nearly 200 zettabytes in 2025, doubling within three years. Every byte generated pushes up demand for analytics, cloud storage, data-driven workflows, and vertical SaaS models optimized around high-frequency inference rather than simple record-keeping. Third, modernization tailwinds are stacking: CFOs are reallocating spend away from on‑prem infrastructure and legacy ERP systems toward cloud-native platforms, workflow automation, and AI‑enhanced productivity suites.
That’s why the industry’s center of gravity is shifting. Instead of a world where “tech” meant physical infrastructure, we now have a software‑led stack where platforms, APIs, and distributed compute define competitiveness.
Markets are already reflecting this transition. The S&P 500 Information Technology Index has climbed nearly 14% year-to-date, powered by both the “Magnificent Seven” and a long tail of mid‑cap software names capitalizing on AI-native adoption curves. The rerating isn’t just about hype; it’s pricing in a rewired economy where code, not capital expenditure, defines margins.
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Beyond the headline numbers, the sector’s forward momentum is being reinforced by an unprecedented capital build‑out. IDC projects global spending on AI infrastructure alone will surpass $223 billion by 2028, with 82% of that delivered through cloud platforms. Big Tech is accelerating this trend; Amazon, Microsoft, Alphabet, and Meta are collectively expected to invest over $300 billion in AI and cloud infrastructure in 2025, surpassing previous investment cycles.
Meanwhile, Gartner forecasts data center systems spending will surge 42% year‑over‑year in 2025, driven by AI‑optimized compute demand. The implication is clear: the boundary between software and infrastructure is dissolving. The firms that dominate the next decade won’t just deliver applications; they’ll own the intelligent systems underpinning the modern economy.
For investors, the opportunity is asymmetric. The fastest-growing names aren’t just riding a cyclical upswing, they’re at the intersection of structural demand shifts, where cloud, AI, and data integration converge into essential infrastructure. Over the next decade, the most durable growth in tech won’t come from selling more hardware; it will come from building the intelligent systems every company now needs to compete.
Source: Photo courtesy of Pixabay
Our Methodology
For our list of the fastest growing tech stocks to invest in, we picked stocks from the tech industry that had the highest year-over-year revenue growth, provided that they satisfied our condition that their 3Y revenue CAGR was above 25% to rule out any flukes. We also considered their year-over-year EPS growth. We picked the year-over-year revenue growth and 3-Year revenue CAGR values for these stocks from stockanalysis.com and the year-over-year EPS growth values from MacroTrends.
We assigned a weightage of 0.7 for revenue growth and 0.3 for EPS growth. We ranked the stocks on each of the two metrics, calculated a weighted average of these rankings for each stock, and then adjusted the final standings accordingly.
Many of these companies report negative EPS growth year-over-year, but this is not unusual for fast-growing tech stocks. In this stage of their lifecycle, profitability often takes a back seat to market expansion. These firms typically reinvest aggressively in R&D, infrastructure, customer acquisition, and strategic hires, choosing to sacrifice short-term earnings in exchange for long-term dominance. While this approach suppresses EPS in the near term, their rapid revenue growth and scalable business models are designed to convert these investments into operating leverage and eventual profitability once growth stabilizes.
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10. Toast, Inc. (NYSE:TOST)
Revenue Growth YoY: 26%
EPS Growth YoY: -252%
Revenue Growth Ranking: 9
EPS Ranking: 10
Weighted Average Ranking: 9.3
Toast Inc. (NYSE: TOST) is one of the fastest growing tech stocks to invest in. On August 6, 2025, multiple analysts updated their ratings on the company following its continued product momentum and expanding market reach. JP Morgan maintained a Neutral rating on the stock while raising its price target from $42 to $52, citing steady operational performance. Goldman Sachs also reiterated its Neutral stance and lifted its price target to $51, noting solid software and payments growth but maintaining caution due to broader market uncertainties.
Meanwhile, Canaccord Genuity expressed stronger confidence in Toast’s trajectory, reaffirming a Buy rating and increasing its price target from $48 to $54. The firm highlighted sustained demand across Toast’s hardware and digital solutions, alongside continued adoption of its point-of-sale systems in restaurants and hospitality businesses.
Toast Inc. (NYSE: TOST) is a Boston-based technology company that builds a cloud-powered platform designed specifically for restaurants. Its software integrates point-of-sale systems, digital ordering, payment processing, marketing tools, and analytics into a single ecosystem.
9. Zscaler (NYSE:ZS)
Revenue Growth YoY: 25.46%
EPS Growth YoY: -50%
Revenue Growth Ranking: 10
EPS Ranking: 6
Weighted Average Ranking: 8.8
ZS (NASDAQ: ZS) is one of the fastest-growing technology stocks to invest in. On August 20, 2025, Zscaler announced an expanded partnership with CrowdStrike and its newly acquired subsidiary Red Canary to supercharge AI‑driven security operations. Integrating Zscaler’s Zero Trust Exchange platform, CrowdStrike’s Falcon, and Red Canary’s agentic‑AI managed detection and response gives organizations a unified, cloud‑native defense layer that replaces clunky legacy endpoint tools. By fusing rich user context, deep endpoint visibility, and lightning‑fast threat response, the alliance promises dramatically improved detection accuracy and streamlined workflows.
Raj Judge of Zscaler emphasized that this trio shares a vision for seamless digital transformation through best‑of‑breed automation and customer‑first innovations. Daniel Bernard emphasized delivering standardized security architectures, real-time threat detection, lightning-fast response, and confidence from Falcon’s AI-native platform.
Brian Beyer of Red Canary said clients are seeing transformative gains in operational efficiency. Meanwhile, on August 12, 2025, Zscaler quietly rolled out protection for five critical Windows elevation‑of‑privilege vulnerabilities as part of Microsoft’s August patch cycle—demonstrating the firm’s commitment to proactive defense.
Zscaler (NASDAQ:ZS), headquartered in San Jose, California, is a leader in cloud security solutions, offering its flagship Zero Trust Exchange platform to connect users, devices, and applications securely across the globe while staying ahead of evolving cyber threats.