Top Tech Shares to Invest in During the Second Half of 2025
Meta Platforms Soars, Applied Materials Holds Steady, and ON Semiconductor Looks to Recover
In the ever-evolving world of technology, three key players – Meta Platforms, Applied Materials, and ON Semiconductor – have been making headlines recently.
Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, is currently trading at a high multiple of 27.6 times earnings. This comes after a robust Q2 2025 earnings report, where Meta beat estimates with EPS of $7.14 and revenue of $47.52 billion. The company's core ads business grew an impressive 21.4% last quarter, and Meta is on track to make over $100 billion in operating profit this year.
Looking ahead, the market outlook for Meta Platforms in Q3 and Q4 of 2025 is strongly positive. This optimism is driven by robust revenue growth primarily from AI-driven initiatives and advertising. Meta forecasts Q3 revenue between $47.5 billion and $50.5 billion, representing 17% to 24% year-over-year growth. Despite a moderation in Q4 growth due to tougher comparison periods, analysts largely maintain a "buy" rating, expecting earnings and revenue growth of about 9-13% per year and an average price target near $755.
Meanwhile, Applied Materials, a leading player in the semiconductor equipment industry, finds itself in a slightly different position. Applied Materials stock is almost 30% below its all-time highs, yet it remains a diversified semicap equipment company, making it in prime position to offer combined solutions to help customers solve complex problems. The company's focus on etch and deposition, crucial for the new transistor architecture, positions it well for the near and medium-term, surpassing rivals like ASML in this regard.
Applied Materials trades at 19 times 2025 earnings estimates and 18 times 2026 earnings estimates. The company has a dividend yield of 1% and a payout ratio still below 20% of earnings, leaving more firepower to raise the dividend and repurchase shares in the future. Applied has raised its dividend at high rates over the last three years, with a 19% increase in 2023, a 25% increase in 2024, and a 15% increase in 2025. Sales to Chinese customers made up 25% of Applied Materials' revenues last quarter.
Regarding ON Semiconductor, the company has faced challenges in recent times. Its end-markets have been in one- to three-year downturns, but its CEO is assured the bottom is in. The company's stock took a hard hit after its recent earnings, but the future remains uncertain for ON Semiconductor as specific market outlooks for Q3 and Q4 of 2025 were not available at the time of this article.
In the broader context, rival ASML Holdings couldn't guarantee a growth year in 2026, contrasting with Meta Platforms' positive outlook. The new transistor architecture is less about lithography, where ASML dominates, and more about etch and deposition, which is where Applied Materials generates most of its business.
In conclusion, while Meta Platforms continues to soar, Applied Materials holds steady, and ON Semiconductor looks to recover, each company presents unique opportunities and challenges in the rapidly evolving tech landscape.
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