3 Tech Stocks Poised for Explosive EPS Growth in 2025

The retail investment community has become saturated with indicators and sophisticated methods for attempting to predict future stock prices, almost completely forgetting the tried-and-tested methodologies that have worked for decades in fundamental investment strategies.

By focusing on what really matters—the financials of a business—investors can cut out most of the noise happening today and steer their portfolios in the right direction for the future.

One of the most important metrics in this space is the direction of earnings per share (EPS) growth, and whether the future of the United States and the global economy is in place to support these growth expectations moving forward. EPS growth tells the story of a company’s profitability trend—and where it might go next. When paired with macroeconomic support and market sentiment, it becomes a powerful tool for stock selection.

Three technology stocks stand out as prime candidates for future appreciation: Micron Technology Inc. (NASDAQ: MU), Lyft Inc. (NASDAQ: LYFT), and Spotify Technology (NYSE: SPOT). Each company shows promising EPS momentum backed by institutional interest or strong business models.

1. Micron Technology: Wall Street Is Catching Up

Micron had been one of the laggards in the semiconductor and chipmaking industry over the past year, falling behind most (if not all) of its peers; however, that story quickly changed in the most recent quarterly performance. Micron stock delivered a monster rally of up to 88.5% during this recent period, an unexpected jump that drew Wall Street’s attention.

Starting with valuations, investors can see how this price action now begins to justify the call made by Robert W. Baird analyst Tristan Gerra in late June 2025, who reiterated an Outperform rating for Micron stock alongside a valuation target of $200 per share.

Even with this strong run over the past quarter, this valuation still suggests an additional 64% upside for investors to consider, not to mention the possibility of the stock reaching a new 52-week high. Typically, this sort of momentum triggers systemic buying from institutional players, which could (and likely will) add to the upside pressure present in this stock.

All told, all of this upside pressure is justified by the expectations that Micron will report up to $2.04 in EPS for the fourth quarter of 2025, a net jump of 7% from today’s reported $1.91 in EPS. While this may not be the largest jump, investors should note that Micron has consistently beaten expectations for the entirety of 2025.

2. Lyft: Institutional Buying Fuels Confidence

As of early May 2025, institutional buyers from the Vanguard Group decided to increase their holdings in Lyft stock by as much as 5.7% to bring their entire position to a high of $451.6 million today, representing 9.1% ownership in the company. This ownership rate in the company not only reiterates the potential for a bullish future in Lyft but also brings a few added benefits.

With such institutional backing, Lyft can now count on the stewardship Vanguard can offer it as a large stockholder, which will likely increase the brand's odds of future success and scalability in the ridesharing marketplace.

With this in mind, it looks like Wall Street analysts feel more confident about Lyft being able to outperform on a financial basis in the future, which is why their EPS forecasts now call for up to $0.05 in the fourth quarter of 2025, a fivefold increase from today’s reported $0.01.

While this may not be the largest EPS figure, the increase is what matters for the future of the stock price and its performance down the line, creating an upside gap that will be filled and enjoyed by current and prospective shareholders.

3. Spotify: Steady Model, Explosive Growth

As the focus grows on the future potential of EPS growth in today’s list of winning stocks, Spotify's underlying business model comes into play to make this expectation a reality in the coming months and quarters. In fact, some on Wall Street are already betting that this scenario will play out sooner rather than later.

With a steady and predictable subscription business model, Spotify is able to repeatedly grow and beat its bottom-line EPS figure in the future, driving Jessica Reif from Bank of America to reiterate her Buy rating for Spotify stock as of late June 2025 while also placing a $900 per share valuation on the stock.

Despite the stock already trading at 92% of its-52 52-week high, this analyst expects to see a further 25% upside in the stock moving forward. Behind this bullish expectation lies the potential for Spotify to keep growing its EPS by high double-digit percentage rates, as it has become the norm for this company’s recent history.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

The article "3 Tech Stocks Poised for Explosive EPS Growth in 2025" first appeared on MarketBeat.