US Tech Stocks: Still Worth Buying in 2025?

 

Introduction: Is the Tech Hype Over — Or Just Beginning?

It’s 2025, and US tech stocks are back in the spotlight.

After a volatile few years marked by rate hikes, AI disruption, and macro uncertainty — the Nasdaq has rebounded strongly. Some big names even hit new all-time highs.

But is it still worth investing in tech?
Or have we already missed the boat?

For Malaysians watching from the sidelines (or holding a few US stock positions already), this post unpacks the current tech landscape — the upside, the risks, and how to get started smartly in 2025.

1. Tech Stocks: Quick Recap of Recent Years

Here’s how things have unfolded:

Year	Major Events	Market Impact
2021	Tech boom continues post-COVID	Nasdaq +21%
2022	Inflation + rate hikes hit valuations	Nasdaq -33%
2023	Recovery begins, AI narrative builds	Nasdaq +43%
2024	Generative AI explodes, chipmakers rally	Big tech leads recovery
2025	AI productivity starts delivering results	Selective tech outperforms S&P 500

Big winners like Nvidia, Microsoft, Meta, and AMD have driven much of the gains — but even less hyped companies like ServiceNow, Snowflake, and Arm are growing fast.

2. Why US Tech Still Has Room to Run in 2025

🚀 1. AI Adoption Moving from Hype to Productivity

AI was last year’s buzzword — but in 2025, it’s becoming mainstream in business ops.

• Enterprises are integrating AI to reduce costs, streamline hiring, and boost output

• Companies building foundational models (OpenAI, Anthropic) are getting big investments

• Hardware (GPUs, data center chips) continues to be in hot demand

Malaysia’s own tech firms are riding this demand via the semiconductor supply chain.

🌍 2. Global Demand for US Tech Products Still Strong

Despite geopolitical tensions and some reshoring, US firms dominate:

• Cloud services (Amazon, Google, Microsoft)

• AI tools and platforms

• Software-as-a-Service (SaaS)

Their global customer base ensures resilience even when local economies slow.

💡 3. Innovation Keeps Flowing

The US tech sector remains a magnet for talent and capital.
Trends worth watching:

• AI + robotics (Boston Dynamics, Tesla)

• Quantum computing (IBM, IonQ)

• AR/VR (Apple Vision Pro rollout)

• Renewable tech + smart grid (Tesla, Enphase)

Investing in tech is a bet on future productivity, not just short-term earnings.

3. What Malaysians Should Consider Before Investing

🔁 Currency Risk

US investments are in USD — if the Ringgit weakens further, your returns in MYR improve.
But if USD drops, your gains may shrink.

✅ Tip: Use platforms like StashAway, Syfe, Wahed to invest in USD-denominated ETFs. These platforms help manage FX conversion and fees automatically.

🧠 Knowledge & Emotional Readiness

Tech stocks are volatile.

If you panic during a 10% dip — tech may not be for you.
But if you understand the long-term thesis and ride the waves — tech can be hugely rewarding.

4. How to Get Exposure to US Tech Stocks

🔹 Direct Stocks (via brokers like IBKR, Moomoo, Rakuten US)

You can buy:

• Individual companies (Apple, Nvidia, Meta)

• But you must do your own analysis

🔹 Tech-Focused ETFs

ETF Name	Exposure	Ticker	Annual Return (5Y Avg)
Invesco QQQ	Top 100 Nasdaq stocks	QQQ	~16%
Vanguard Info Tech	Broad tech industry	VGT	~18%
Global X Robotics	Automation + AI	BOTZ	~12%
ARK Innovation	Disruptive tech (high risk)	ARKK	~10% (high volatility)

✅ ETFs are great for diversification and hands-off investing.

5. Case Study: Investing with RM1,000 Monthly

Let’s say you start now, investing RM1,000/month into a tech ETF like QQQ.

At an average return of 10%:

Time Horizon	Total Invested	Portfolio Value
5 years	RM60,000	~RM77,000
10 years	RM120,000	~RM190,000
20 years	RM240,000	~RM590,000

💡 Investing in tech is less about “timing” and more about time in the market.

6. But What About the Risks?

Tech investing isn’t risk-free.

🔻 Valuation Risk

Some stocks still trade at high P/E ratios — any slowdown may hit them hard.

🌐 Geopolitical Risk

US-China tensions, export restrictions, or cybersecurity regulations could impact global operations.

🧮 Regulatory Risk

Antitrust pressure is building on big tech (especially Meta, Google, Apple) from US and EU regulators.

✅ Don’t go “all-in” on a single name. Diversify with ETFs or across sectors.

7. Should You Still Buy Now — or Wait?

Yes, valuations have risen — but waiting forever for a “crash” often means missing the gains.

✅ Best approach?

• Start small

• DCA monthly

• Rebalance your portfolio every 6–12 months

Don’t try to guess the top or bottom. Ride the trend with discipline.

8. Should Malaysians Worry About Withholding Tax?

Yes, US dividends are subject to 30% withholding tax.

Example:

• Apple pays $1 dividend/share → You receive $0.70/share

• Malaysian tax-residents cannot offset this unless via treaty (not applicable directly)

✅ Solution: Focus on growth tech stocks or accumulation ETFs that don’t pay out dividends (e.g. QQQ, VGT)

Final Thoughts: Stay Smart, Stay Global

The world is getting smaller.
Malaysians no longer need to limit investing to local stocks and fixed deposits.

The US tech sector remains a powerhouse of innovation, profitability, and global impact.

If you're ready to embrace long-term investing — and can stomach some short-term volatility — tech remains a smart play in your portfolio.

✅ Start small
✅ Automate your contributions
✅ Keep learning

Because while trends come and go, technology isn't going away.