As the ‘Magnificent 7’ stall, here’s the next wave of high-growth Nasdaq tech stocks delivering big gains

The ‘Magnificent 7’ (Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Nvidia) have been phenomenal investments over the last decade.

However recently, they seem to have stalled (the Roundhill Magnificent Seven ETF is actually down year to date). The good news is that there’s a new wave of Nasdaq tech stocks coming through today. These growth stocks are delivering big gains for investors right now and they appear to have plenty of growth potential looking ahead.

Five soaring Nasdaq stocks

In the table below, I’ve highlighted five Nasdaq stocks that have delivered fantastic gains in 2025. All are tech focused and growing rapidly.

Stock	Industry	Market cap	Year-to-date gain	1-year gain
Broadcom	Chips and networking	$1.2trn	12%	84%
Palantir	Data/AI software	$283bn	58%	422%
MercadoLibre	Online shopping	$131bn	52%	61%
CrowdStrike	Cybersecurity	$115bn	35%	35%
Zscaler	Cybersecurity	$47bn	67%	72%

Data as of 5 June 2025

Of the five, Zscaler‘s (NASDAQ: ZS) delivered the biggest gains. Year to date, it’s up 67%.

As you can see from the market-cap column, most of these companies are far smaller than the Mag 7 companies (where the average market-cap is about $2.4trn). Zscaler has the smallest market-cap at $47bn – less than 2% the size of Apple’s market-cap.

The smaller size of this cohort could be considered a positive. Generally speaking, the smaller a company is, the easier it is for it to double in size.

Scalable businesses

Now, I’m not saying that all these tech stocks are Buys today. A few look a little risky at current levels, given their valuations.

Palantir, for example, currently trades at about 73 times this year’s sales forecast. That’s a sky-high valuation and it’s pricing in a lot of future growth.

But all appear to have a lot of long-term growth potential. In most cases, the companies are very scalable – a factor that has helped the Mag 7 companies have success over the last decade.

It’s worth noting that there are some other very scalable US tech stocks that aren’t listed on the Nasdaq that are doing well in 2025 including the likes of Uber and Snowflake. Year to date, both are up more than 20%.

I’m bullish on cybersecurity

Of the five Nasdaq stocks listed, I only own two of these stocks today. These are the cybersecurity companies – CrowdStrike and Zscaler.

I believe the cybersecurity industry is going to balloon in size over the next decade. And I see these two companies as a good way to capitalise on the industry growth.

I’ve covered CrowdStrike a few times recently at The Motley Fool so let’s zoom in on Zscaler here. It offers an advanced cloud-based cybersecurity platform (that leverages the power of AI) and is growing rapidly.

Over its last five financial years, its revenue’s climbed from $303m to $2,168m – growth of over 600%. This financial year (ending 31 July) sees Wall Street expect its revenue to come in at $2,658m – growth of 23%.

It’s worth noting that last month, the company posted strong quarterly results and raised its guidance for FY2025 revenue and earnings. On the back of this guidance upgrade, lots of analysts increased their price targets for the stock.

Now, one downside to this stock is that its profits are still small. This is likely to result in share price volatility at times.

Another issue to be aware of here is that cybersecurity is a dynamic industry. Threats are always evolving and cybersecurity products can become obsolete quickly.

I believe this stock’s worth considering on pullbacks, however. Over the next five years, I think it should do well.

The post As the ‘Magnificent 7’ stall, here’s the next wave of high-growth Nasdaq tech stocks delivering big gains appeared first on The Motley Fool UK.

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Edward Sheldon has positions in Alphabet, Amazon, Apple, CrowdStrike, Microsoft, Nasdaq, Nvidia, Snowflake, Uber Technologies, and Zscaler. The Motley Fool UK has recommended Alphabet, Amazon, Apple, CrowdStrike, MercadoLibre, Meta Platforms, Microsoft, Nasdaq, Nvidia, Snowflake, Tesla, Uber Technologies, and Zscaler. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.