3 Best Tech Stocks to Buy in October 2025: Nvidia, Microsoft, and AMD

October 2025 begins under a cloud of uncertainty for the technology sector, as recent macroeconomic signals and market volatility demand close attention from investors. The U.S. Federal Reserve’s cautious stance on rate cuts, with policymakers signaling openness to further easing while warning against overly aggressive moves, has created a tense backdrop for growth stocks. 

Meanwhile, the 10-year U.S. Treasury yield is expected to remain in the 3.6 % to 4.0 % range through year-end, reinforcing the pressure on discount rates for long duration assets. 

Technology firms are navigating this environment while contending with rising costs of capital, regulatory scrutiny, and supply chain constraints. At the same time, enterprise demand for cloud infrastructure, AI tools, and data services remains a key driver of sector growth. Deloitte projects global IT spending to rise by about 9.3 % in 2025, with software and data center investments continuing to expand strongly.

Yet market sentiment is mixed. After two straight days of declines, major U.S. tech stocks have faced headwinds despite ongoing AI investment announcements. At the same time, skeptics warn that the rapid rise in AI valuations could echo past speculative bubbles. 

In this context, choosing the right tech stocks for October demands a balance of growth potential and resilience. The following picks aim to identify companies with strong fundamentals, clear catalysts, and manageable downside risks under current market conditions.

1. Nvidia (NVDA)

Nvidia remains one of the most visible names in the tech sector, especially in areas tied to artificial intelligence, data centers, and high performance computing. In its most recent quarter, Nvidia reported revenue of $46.7 billion, up 56 % year over year, with its data center segment contributing $41.1 billion, also up 56 % year over year.

A major recent development is Nvidia’s decision to commit up to $100 billion to its long-term partnership with OpenAI. Under that agreement, Nvidia will provide chips and infrastructure as OpenAI scales its systems to deploy 10 gigawatts of AI datacenters over time.

On the product side, Nvidia introduced the Rubin CPX GPU, a new design optimized for very large context workloads, such as long language chains and generative video. It is slated to enter production in late 2026.

These moves help strengthen Nvidia’s position in next-generation AI compute. At the same time, risks are visible. The valuation of Nvidia is seen by some analysts as stretched. Critics warn of speculative excess in AI investments and comparisons to past tech bubbles.

Nvidia also faces geopolitical and regulatory pressure. U.S. export controls affect its ability to ship advanced chips to China, one of the world’s largest compute markets. Meanwhile, China is accelerating development of its domestic AI chip capabilities, with firms like Huawei pushing to reduce dependency on Nvidia hardware.

From a timing perspective, October offers several possible catalysts. Nvidia’s GTC event in Washington in late October may bring announcements on roadmap and product developments.

Also, investor focus will fall on whether Nvidia’s growth holds up against valuation pressure and macro risks. For these reasons, Nvidia is highlighted here as a leading but high-beta pick for October.

2. Microsoft (MSFT)

Microsoft showed strong financial results in its fiscal fourth quarter ending June 30, 2025. Revenue rose to about $76.4 billion, up 18 % year over year, exceeding analysts’ expectations. Net income grew 24 %, reaching approximately $27.2 billion.

The cloud business remains a big driver for Microsoft. Its “Intelligent Cloud” segment recorded roughly $29.9 billion in revenue, growing about 26 % year over year. This was led by Azure and related cloud services, which themselves rose 39 % in the quarter. Microsoft also revealed that Azure’s full-year revenue has passed $75 billion, up 34% from the previous year.

Other areas also posted solid gains. Productivity and Business Processes (which includes Microsoft 365 and Dynamics) grew about 16% year over year. Microsoft 365 commercial cloud revenue grew even faster. Gaming, search advertising, and Windows OEM showed mixed but positive performance.

There are some risks to watch. The company spends heavily on AI infrastructure and data centers, which can squeeze margins when costs rise. Global competition in cloud services remains strong. Also, macroeconomic conditions or regulatory pressures could slow enterprise IT spending.

From an October perspective, Microsoft looks well-positioned. Its strong cloud revenue growth, rising demand for AI tools, and high commercial bookings point to continued momentum. Investors may focus on how Microsoft manages costs and capital spending in the upcoming quarters to sustain its growth.

3. AMD (Advanced Micro Devices)

AMD posted record revenue of $7.685 billion in its second quarter of fiscal 2025, up about 32% year over year, even after an $800 million inventory charge tied to U.S. export restrictions.

The Data Center segment also showed growth, delivering $3.2 billion, representing a 14% increase from the same period last year. That growth was mainly driven by strong sales of EPYC server CPUs. Meanwhile AMD’s Client and Gaming segment surged around 69% year over year, boosted by its “Zen 5” Ryzen desktop processors and a richer product mix.

Some risks are evident. The $800 million export control‐related write-off reduced margins and hurt some operating figures. Also shipments of certain GPUs (MI308) to China remain constrained pending export licenses.

AMD’s future outlook appears optimistic. It forecasted third quarter 2025 revenue near $8.7 billion, plus or minus $300 million, which would represent roughly 28% year over year growth. Non-GAAP gross margin is expected to recover to about 54%. Product roadmap momentum also matters. The MI350 series of accelerators is ramping, and the company is preparing for its MI400 line in 2026.

Given its strong recent performance, visible product pipeline, and favourable demand in both the data centre and client segments, AMD represents a high-growth opportunity for October. Still, sensitivity to regulatory headwinds and margin pressure make the stock more volatile than more established large-caps.

Conclusion

The technology sector faces a complex mix of opportunity and risk this October. Nvidia stands out for its unmatched role in powering AI infrastructure, though its valuation and exposure to regulatory scrutiny add volatility. Microsoft offers steadier growth anchored in cloud and enterprise services, with investors watching how its capital spending aligns with future profitability. 

AMD, meanwhile, provides higher growth potential through its expanding server CPUs and GPUs, but remains vulnerable to export restrictions and margin swings.

Together, these three stocks highlight the varied paths within technology today, from AI hardware leadership to enterprise cloud dominance and processor innovation. Each presents a distinct risk-reward profile suited for different investor strategies.

Looking ahead, the next quarter will be shaped by corporate earnings, ongoing interest rate signals, and fresh updates on AI adoption across industries. As companies report results and share updated guidance, the resilience of these three stocks against macroeconomic and policy pressures will become clearer. For investors seeking exposure to technology in October, a balanced view of growth potential and caution is essential.