The ‘Magnificent 7’ (Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Nvidia) have been phenomenal investments over the last decade.
However recently, they seem to have stalled (the Roundhill Magnificent Seven ETF is actually down year to date). The good news is that there’s a new wave of Nasdaq tech stocks coming through today. These growth stocks are delivering big gains for investors right now and they appear to have plenty of growth potential looking ahead.
Five soaring Nasdaq stocks
In the table below, I’ve highlighted five Nasdaq stocks that have delivered fantastic gains in 2025. All are tech focused and growing rapidly.
| Stock | Industry | Market cap | Year-to-date gain | 1-year gain |
| Broadcom | Chips and networking | $1.2trn | 12% | 84% |
| Palantir | Data/AI software | $283bn | 58% | 422% |
| MercadoLibre | Online shopping | $131bn | 52% | 61% |
| CrowdStrike | Cybersecurity | $115bn | 35% | 35% |
| Zscaler | Cybersecurity | $47bn | 67% | 72% |
Of the five, Zscaler‘s (NASDAQ: ZS) delivered the biggest gains. Year to date, it’s up 67%.
As you can see from the market-cap column, most of these companies are far smaller than the Mag 7 companies (where the average market-cap is about $2.4trn). Zscaler has the smallest market-cap at $47bn – less than 2% the size of Apple’s market-cap.
The smaller size of this cohort could be considered a positive. Generally speaking, the smaller a company is, the easier it is for it to double in size.
Scalable businesses
Now, I’m not saying that all these tech stocks are Buys today. A few look a little risky at current levels, given their valuations.
Palantir, for example, currently trades at about 73 times this year’s sales forecast. That’s a sky-high valuation and it’s pricing in a lot of future growth.
But all appear to have a lot of long-term growth potential. In most cases, the companies are very scalable – a factor that has helped the Mag 7 companies have success over the last decade.
It’s worth noting that there are some other very scalable US tech stocks that aren’t listed on the Nasdaq that are doing well in 2025 including the likes of Uber and Snowflake. Year to date, both are up more than 20%.
I’m bullish on cybersecurity
Of the five Nasdaq stocks listed, I only own two of these stocks today. These are the cybersecurity companies – CrowdStrike and Zscaler.
I believe the cybersecurity industry is going to balloon in size over the next decade. And I see these two companies as a good way to capitalise on the industry growth.
I’ve covered CrowdStrike a few times recently at The Motley Fool so let’s zoom in on Zscaler here. It offers an advanced cloud-based cybersecurity platform (that leverages the power of AI) and is growing rapidly.
Over its last five financial years, its revenue’s climbed from $303m to $2,168m – growth of over 600%. This financial year (ending 31 July) sees Wall Street expect its revenue to come in at $2,658m – growth of 23%.
It’s worth noting that last month, the company posted strong quarterly results and raised its guidance for FY2025 revenue and earnings. On the back of this guidance upgrade, lots of analysts increased their price targets for the stock.
Now, one downside to this stock is that its profits are still small. This is likely to result in share price volatility at times.
Another issue to be aware of here is that cybersecurity is a dynamic industry. Threats are always evolving and cybersecurity products can become obsolete quickly.
I believe this stock’s worth considering on pullbacks, however. Over the next five years, I think it should do well.
