2024 was a wild year for stocks. The Nasdaq Composite saw one of its best years, rising by as much as a third between January and December. But things were a little more rocky for the FTSE 100, which only rose about 6% over the same period.
2025 promises to be a better year for the stock market, with inflation back down to normal levels and interest rates falling. There are signs that several British tech unicorns, who have been talking up their IPO plans for some time now, may finally pull the trigger and get the London Stock Exchange firing on all cylinders again.
As such, the time is right for the team at UKTN to submit our best stock tips for 2025. These are either UK-listed tech firms, or UK tech firms with a listing overseas.
(Full disclosure — we are not financial analysts and the tips below should not constitute investment advice.)
Simon Hunt, Editor
Arm had a wild ride in 2024. The Nasdaq-listed chip designer surpassed the $100bn market cap mark in February, the first British tech firm to hit the milestone, after the shares reached $150 – and then in July the stock surged further still to nearly $200/share.
I reckon the stock still has a way to go in 2025. First of all, towards the latter quarter of 2024, Arm shares pared back to $123 – so there’s plenty of room for upside this year, even if the shares don’t recover to their 2024 peaks.
Second, Arm has begun to make major inroads into designing the chips needed for data centres – and if my inbox is anything to go by, the rate of building these is only going to increase. With the insatiable appetite for compute by AI businesses, the energy consumption of data centres is also moving centre stage, presenting a greater opportunity for Arm’s energy-efficient designs.
Finally, when I spoke to Arm’s Chief Architect last month, he told me that at the company’s recent annual conference, he insisted that “You ain’t seen nothin’ yet” be played as his entrance music when he came on stage. If that isn’t a sign of how bullish the company’s board is on its prospects for 2025, I don’t know what is.
Tipped at: $141, the closing price as at 3 January 2025
Oscar Hornstein, Senior Reporter
With the rise of generative AI a few years old now, there is bound to be a greater level of scrutiny over where it’s making a meaningful impact to corporate bottom lines or whether it is pointlessly integrated for the sake of justifying a .ai domain name.
I consider myself neither a harsh sceptic of gen-AI nor a bullish sycophant. But certain tasks, namely the menial administrative aspects of business, will inevitably be commandeered by the technology. It’s in that spirit that I’d wager companies offering services like Newcastle-based Sage are bound to receive a big boost.
It’s already being reflected in the firm’s recent financial accounts since the launch of its AI copilot, with the company reporting solid revenue growth. In days of lower valuations and financial belt-tightening by investors, its the profitable companies that are most likely to survive and thrive. So trusting a decades-old, reliably profitable tech firm ripe for benefiting from recent AI advancements would be sage advice.
Tipped at: £12.78, the closing price as at 3 January 2025
Melissa Tennant, Senior partnerships manager
Wise (formerly TransferWise), headquartered in London, is a financial technology company focused on global money transfers. The fintech has disrupted traditional banking with its transparent pricing and efficient services revolutionising how we send and receive money across borders. Wise have over 16 million customers worldwide, transfer more than £118 billion annually, operate across 160 countries and in 40 currencies.
The firm has had a very solid performance the past few months, which has seen its shares surge to surpass their 2021 IPO price. Few tech firms that floated during that year can make the same claim.
But there are plenty of reasons to think Wise is set to continue along an upward trajectory in 2025. The fintech already has a strong brand reputation and the year is likely to see continued growth in cross-border transactions and the increasing adoption of digital payments. The prospect of increased tariffs and protectionism could also see some big exchange rate fluctuations this year — all the more reason to think people will be more concerned about where, and in what format, to hold their cash.
Tipped at: £10.96, the closing price as at 3 January 2025
Ramesh Sharma, co-founder
2024 was a challenging year for Oxford Nanopore, which saw the firm’s shares fall by more than a third amid a drop in revenue as well as the prospect of a lawsuit with a former major contractor. But there is plenty of room for upside for the biotech in 2025.
Oxford Nanopore’s handheld DNA and RNA sequencers let scientists analyse genetic code anywhere which makes them somewhat unique, as they have portable handheld devices. That means faster results with real-time data and at a lower cost and because of this more researchers and labs are using their equipment, from tracking COVID variants to studying plant diseases in the field.
The wide areas that their technology can be used give them access to a global market which will give rise to faster growth, and the increasing role that AI is playing in the areas like drug discovery and genetics, will surely mean that the firm’s devices will be in hot demand.
Tipped at: 131p, the closing price as at 3 January 2025
Aaron Edwards, trainee reporter
Having only made its London Stock Exchange debut this year, things can only go up for Raspberry Pi. It entered the market with an IPO of 280p per share but that rose to 392p per share within minutes of trading. The flotation was a rare gem in an otherwise lacklustre year for the LSE.
After launching their CM5 product at the end of November, Raspberry Pi’s stock price increased by 45% and continued its rally right to the end of the year.
This end of year boost suggests that after a successful year on the LSE, Raspberry Pi’s future looks bright in 2025. The firm’s low-cost computers have always been popular with computer programming enthusiasts but its manufacturer customer base gets bigger every year and that shows no sign of slowing down.
Tipped at: £6.53, the closing price as at 3 January 2025.
Daniel Hilton, trainee reporter
Investors hungry for a UK tech stock to invest in this year should look to Deliveroo, the London-based delivery company. In August last year, the firm, famed for its cyan-clad cyclists, achieved its first-ever profit of £1.3m after 11 years of losses. This came as the number of orders it received increased by 2% over the first half of the year.
Deeliveroo’s expansion into grocery and retail delivery—including sending DIY tools to your door and a bizarre, limited-time perfume on demand service—also helped the company finally achieve a positive cash flow.
Despite its disappointing IPO in 2021 and subsequent stock hit, its share price has slowly but surely grown over the past year and in December was welcomed into the FTSE 250. That, and its £150m share buyback scheme, may reassure potential investors who want a bite of Deliveroo’s pie.
Tipped at: 139.6p, the closing price as at 3 January 2025
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