Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
3 Emerging Tech Trends Worth Watching for Investors
Ruby Layram
10th Mar 2025
2024 will be remembered as a year when investors showed heightened enthusiasm for tech. This year, despite the inherent risks, technology stocks have had a notable performance thanks to an influx of interest from investors. Yet, importantly, past performance does not guarantee future results, and market conditions can change rapidly. Developments in AI, electric vehicles, and other segments of tech have contributed to the sector’s momentum, but investors should remain mindful of the challenges that come with rapid innovation.
One of the key factors that make tech an appealing investment is its growth potential, which although also makes this investment inherently risky. A lot of tech companies have reinvested their profits into expansion and development, which in its turn can potentially lead to growth. However, the sector remains highly volatile, as seen when recent developments in AI led to shifts in demand for certain semiconductor products, temporarily impacting investor sentiment. Additionally, geopolitical factors continue to play a significant role in shaping supply chains and market stability, adding another layer of uncertainty.
In this guide, we will take a look at 3 emerging tech trends that are worth watching. Understanding emerging trends is a good way to prepare your portfolio and invest before the market reaches its peak.
Of course, there is no guarantee that these trends will return profits and it is important to understand that the tech sector is one of the most volatile corners of the market to invest in. The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested. Conduct research and be aware of risks!
Why You Should Add Tech to Your Portfolio
Emerging technologies can offer opportunities for investors who are prepared to take a risk. On one hand, they provide access to sectors with potential for remarkable growth. On the other, they can be extremely volatile and speculative. Nevertheless, tech stocks are found in most experienced long-term investors’ portfolios, for a number of reasons.
High growth potential: Emerging tech markets, such as AI and space exploration, are anticipated to show growth over the next decade, although this is subject to various uncertainties such as market sentiment.
Portfolio diversification: Investing in new industries can balance a portfolio against traditional stocks or bonds.
Participating in innovation: By funding these industries, investors play a role in advancing global progress, from sustainability to digital connectivity.
Please be reminded that the value of your investments and any income they generate may fluctuate, and you could receive less than your original investment.
Different Ways to Invest in Tech
Before diving into the trends, let’s review some of the ways to gain exposure to emerging technologies.
Tech-themed ETFs
Exchange-Traded Funds (also called ETFs) can be a relevant option for investors seeking diversification with the potential of reducing risks. When you buy an ETF, you buy into a basket of different stocks. This is ideal for investors who are looking for an easy way to build a diverse portfolio and don’t mind leaving some of the decision-making to others. However, it is important to highlight that they are generally more volatile and carry higher risks compared to broader equity market indices. Tech-focused ETFs carry additional risks, such as liquidity risks in the case of lower trading volumes and foreign currency risks in the event of fluctuations in base vs foreign currency values. Just like stocks, ETFs are traded on exchanges which means that they are usually easy to buy and sell.
Tech Stocks
Investing in individual stocks of tech companies offers targeted exposure to specific technology sectors, allowing investors to focus on particular areas of innovation. This approach can be suitable for those who are comfortable with market research and understand the risks associated with company performance and industry trends. However, it requires careful evaluation, as individual stocks can be more volatile than diversified investment options.
Some of the UK investment platforms allow you to buy fractional shares – a fancy term for investing in a portion of a stock instead of buying the whole thing. This makes it possible to buy expensive tech stocks on a budget.
Although investing in individual stocks comes with a lot of freedom, it is also very risky! As mentioned earlier, investing in a single tech stock exposes an investor to more risk than a diversified portfolio. Moreover, performance of individual tech stocks is highly dependent on company’s success and management decisions. Furthermore, regulatory and geopolitical risks can impact tech companies, with changes in government policies and global events potentially affecting stock performance.
Invest in Startups
Startups in emerging tech fields often need funding through venture capital or platforms. This approach carries higher risks but can be highly rewarding if the company succeeds.
Startup investors can receive returns through capital gains and potentially profit share.
As mentioned above, this method of investing in tech is the most high-risk. So, it’s a good idea to do your research and assess your risk tolerance.
3 Emerging Tech Trends to Watch
Now, let’s take a look at 3 emerging tech trends to watch.
Semiconductors
Semiconductors, the essential components that power electronic devices by controlling electrical currents, are a pivotal technology trend to watch in 2025. Semiconductor investing has grown as chips become indispensable for AI, cloud computing, and connected devices.
However, this expansion comes with risks, including supply chain disruptions, geopolitical tensions, and rapid technological shifts that can render advancements obsolete. Investors must navigate market cyclicality and competitive pressures while balancing growth potential with these structural uncertainties.
Investors can gain exposure to semiconductors through individual stocks of chip designers, manufacturers, and equipment suppliers, as well as through diversified ETFs or mutual funds. Semiconductor-focused ETFs, in particular, provide a way to access the broader semiconductor industry while mitigating company-specific risks, with some funds focusing on established leaders and others targeting emerging technologies. More specialized options include private equity, venture capital, or derivative instruments, each carrying different levels of risk and complexity. Given the industry’s cyclical nature and supply chain dependencies, a balanced approach is key to managing potential volatility.
Astronautics
Private companies are transforming space into an industry that everyday investors can access, with opportunities spanning satellite development, space tourism, and commercial space infrastructure.
Contrary to popular belief, space technology extends far beyond just rocket ships. Several companies are actively involved in launching satellites for purposes such as communication, GPS, weather forecasting, and even monitoring greenhouse gas emissions, although early-stage investments in this sector are inherently speculative, and investors should be prepared for significant volatility. Additionally, some private companies have successfully launched commercial suborbital flights, offering brief space tourism experiences and bringing the concept closer to reality. However, challenges remain in terms of cost, safety, and scaling operations for broader accessibility.
Investors can gain exposure through space-themed ETFs, which provide diversified access to key players in satellite technology, launch systems, and emerging space services. For those seeking more direct involvement, individual stocks of aerospace and defense companies, as well as private equity or venture capital in early-stage space startups, provide alternative investment paths. Nonetheless, while the industry holds promise, factors such as high capital costs, regulatory challenges, and uncertain commercialization timelines should be carefully considered when evaluating investment opportunities.
Esports
In recent years, esports has evolved from a niche interest into an expanding global industry, with increasing global viewership and growing commercial opportunities. Its inclusion in international sporting events, such as the Olympic Esports Series, reflects a broader recognition of competitive gaming, though its long-term position in traditional sports remains uncertain. While the market presents long-term potential, factors such as evolving consumer trends, regulatory considerations, and technological advancements should be carefully evaluated.
This sector tends to generate revenue through sponsorships, media rights, and merchandising, attracting significant corporate partnerships and expanding its global audience. Investors can gain exposure through various avenues, including individual stocks of gaming hardware and software companies, venture capital in emerging gaming startups, or broader technology funds. Additionally, ETFs with the eSports theme provide diversified access to key players in the industry, mitigating company-specific risks while capturing sector-wide growth. Although video games have been around for centuries, eSports is very much a new concept that is still in its early days. Furthermore, the esports industry is relatively volatile due to shifting consumer preferences, reliance on sponsorship revenue, and evolving regulatory landscapes. Rapid technological advancements and competitive market dynamics can also create uncertainty, while many organizations still face profitability challenges.
There are plenty of opportunities for growth investors to get involved with emerging tech trends in 2025. Prior to taking action and making commitments, it is advisable to take time to thoroughly research the market and understand the risks that come with investing in emerging industries. The tech sector is highly competitive, and even dominant companies can be disrupted by new technologies or competitors, threatening their market share and profitability. It’s also a good idea to pay attention to market news and announcements so that you can make informed decisions based on current affairs. Investing in emerging tech requires an appetite for both risk and reward, but the potential benefits remain relevant.
Please note that past performance is not a guide to future performance and should not be the sole factor of consideration when selecting an investment.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
INVESTING IN GOLD, IN MY OPINION, COMBINATED WITH YOU TUBE EXPERIENCES, WOULD BE
THE REAL STRONG ACCENT THAT YEAR!
BECAUSE WE DO NOT KNOW IF OUR MONEY IS REALLY LIQUID IN THE BANKS!
KIND REGARDS,
TEODORA
17.3.2025
SOFIA