Tech Investing in 2025: Emerging Trends and Market Opportunities
16 January 2025
Read Time 3 MIN
As we enter 2025, technology continues to drive innovation and economic growth, shaping the future of industries and markets. Advancements in artificial intelligence (AI), semiconductors, cloud computing, cybersecurity, and renewable technologies offer exciting opportunities for investors. However, predicting the ultimate winners in such a dynamic environment is challenging, making a diversified investment strategy critical.
Economic and Technological Trends Driving Tech Investments
The global economy is expected to provide strong tailwinds for the tech sector in 2025. Supportive policies and increased government spending are incentivizing innovation across a wide range of industries, including AI, semiconductors, cloud computing, and renewable energy. Advances in real-time AI processing are expanding applications from autonomous vehicles to healthcare solutions. Cloud computing continues to underpin digital transformation, offering scalable solutions to businesses worldwide, while cybersecurity remains essential as digital threats evolve.
Edge Computing Market Value Worldwide
2019-2027 (In Billions)
Source: Statista, July 2024. For illustrative purposes only. Past performance is no guarantee of future results. Not intended as a forecast or prediction of future results.
Technology Behind the AI Boom
Semiconductors are increasingly critical to these technologies, driving demand for advanced chip designs to support edge devices and AI inference. At the same time, renewable technologies are being adopted at scale, reflecting a growing global commitment to sustainable energy.
Nuclear energy is emerging as a key player in the clean energy transition, with small modular reactors (SMRs) offering scalable and flexible power solutions. These developments align with the energy needs of AI and data centers, where consistent and reliable power is essential. The VanEck Uranium and Nuclear UCITS ETF provides exposure to this revitalized industry, positioning investors to benefit from its growth.
Main Risk Factors of a Nuclear ETF: Industry or Sector Concentration Risk, Liquidity Risks, Risk of Investing in Natural Resources Companies. For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.
Market Opportunities in Technology for 2025
The semiconductor industry remains a focal point, driven by the surging demand for AI applications and edge computing. Companies specializing in advanced chip designs are well-positioned for growth. The VanEck Semiconductor UCITS ETF offers targeted exposure to these innovators.
Main Risk Factors of a Semiconductor ETF: Industry or Sector Concentration Risk, Equity Market Risk, Liquidity Risks. For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.
Cloud computing and cybersecurity are foundational to the digital economy, enabling innovation while ensuring resilience against digital threats. These sectors, alongside AI and nuclear energy, are bolstered by global investment and policy support. The advent of SMRs (Small Modular Reactors), for instance, addresses energy needs for AI-driven industries, offering a sustainable solution to power-intensive technologies.
Globally, markets in Asia and North America are emerging as innovation hubs, spurred by private and public investment. Legislative efforts, such as the CHIPS Act in the U.S., exemplify how policy can reshape industries, drive competitive advantages, and strengthen supply chains.
Technology Revenue Worldwide by Segment
2018-2028 (In Billions)
Source: Statista. Segment 2024: For illustrative purposes only. Past performance is no guarantee of future results. Not intended as a forecast or prediction of future results.
Diversifying Technology Investments: A Critical Strategy
While individual sectors like semiconductors, nuclear energy, and cloud computing offer significant promise, predicting the precise winners remains challenging. This is where thematic ETFs provide practical solutions. Funds like SMH and NLR allow investors to capture broad trends while minimizing risks associated with betting on specific companies. These ETFs deliver diversified exposure to the sectors driving the next wave of technological and industrial growth.
Main Risk Factors of a Semiconductor ETF: Industry or Sector Concentration Risk, Equity Market Risk, Liquidity Risks. For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.
Main Risk Factors of a Nuclear ETF: Industry or Sector Concentration Risk, Liquidity Risks, Risk of Investing in Natural Resources Companies. For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.
2025 could be a defining year for technology investing. The convergence of AI, semiconductors, cloud computing, and renewable technologies highlights the importance of a diversified strategy.
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IMPORTANT INFORMATION
This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions. This information originates from VanEck (Europe) GmbH, which has been appointed as distributor of VanEck products in Europe by the Management Company VanEck Asset Management B.V., incorporated under Dutch law and registered with the Dutch Authority for the Financial Markets (AFM). VanEck (Europe) GmbH with registered address at Kreuznacher Str. 30, 60486 Frankfurt, Germany, is a financial services provider regulated by the Federal Financial Supervisory Authority in Germany (BaFin).
The information is intended only to provide general and preliminary information to investors and shall not be construed as investment, legal or tax advice VanEck (Europe) GmbH and its associated and affiliated companies (together “VanEck”) assume no liability with regards to any investment, divestment or retention decision taken by the investor on the basis of this information. The views and opinions expressed are those of the author(s) but not necessarily those of VanEck. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results. Information provided by third party sources is believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. Brokerage or transaction fees may apply.
VanEck Asset Management B.V., the management company of VanEck Semiconductor UCITS ETF (the "ETF"), a sub-fund of VanEck UCITS ETFs plc, is a UCITS management company incorporated under Dutch law registered with the Dutch Authority for the Financial Markets (AFM). The ETF is registered with the Central Bank of Ireland, passively managed and tracks an equity index. Investing in the ETF should be interpreted as acquiring shares of the ETF and not the underlying assets.
VanEck Asset Management B.V., the management company of VanEck Uranium and Nuclear Technologies UCITS ETF (the "ETF"), a sub-fund of VanEck UCITS ETFs plc, is a UCITS management company incorporated under Dutch law registered with the Dutch Authority for the Financial Markets (AFM). The ETF is registered with the Central Bank, passively managed and tracks an equity index. Investing in the ETF should be interpreted as acquiring shares of the ETF and not the underlying assets.
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All performance information is based on historical data and does not predict future returns. Investing is subject to risk, including the possible loss of principal.
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© VanEck (Europe) GmbH
Important Disclosure
This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.
This information originates from VanEck (Europe) GmbH, which has been appointed as distributor of VanEck products in Europe by the Management Company VanEck Asset Management B.V., incorporated under Dutch law and registered with the Dutch Authority for the Financial Markets (AFM). VanEck (Europe) GmbH with registered address at Kreuznacher Str. 30, 60486 Frankfurt, Germany, is a financial services provider regulated by the Federal Financial Supervisory Authority in Germany (BaFin).
The information is intended only to provide general and preliminary information to investors and shall not be construed as investment, legal or tax advice VanEck (Europe) GmbH, VanEck Switzerland AG, VanEck Securities UK Limited and their associated and affiliated companies (together “VanEck”) assume no liability with regards to any investment, divestment or retention decision taken by the investor on the basis of this information. The views and opinions expressed are those of the author(s) but not necessarily those of VanEck. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results. Information provided by third party sources is believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. Brokerage or transaction fees may apply.
All performance information is based on historical data and does not predict future returns. Investing is subject to risk, including the possible loss of principal.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of VanEck.
© VanEck (Europe) GmbH / VanEck Asset Management B.V.
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