These are UBS’s 10 highest-conviction stock picks in the hottest corner of the market

In 2025, the technology, media, and telecommunications sectors have emerged as significant outperformers in the stock market, largely driven by robust investor interest and macroeconomic trends favoring digital transformation. According to UBS, these sectors are gaining attention due to impressive year-to-date performances, notably surpassing the S&P 500 index. With the overall S&P 500 up only 13% this year, technology stocks have surged by approximately 20%, while communications services stocks boast a remarkable 22% increase.

UBS recently highlighted ten of their highest-conviction stock picks within these sectors, reflecting a strategic focus on companies with strong growth potential backed by proprietary insights. These selections indicate not just a belief in the future of the technology and communications landscape but also a commitment to identifying stocks that may provide significant upside for investors willing to engage with these dynamic segments. Below, we analyze these ten stock picks, offering insights into their current performances and projected growth.

1. NIQ Global Intelligence (Ticker: NIQ)

Year-to-Date Performance: -16%
Predicted Upside: +56%
After its transformation in 2021, which included substantial investments amounting to $920 million in various strategic initiatives, NIQ is believed to be positioned for a compound annual growth rate (CAGR) of around 5% in organic revenue from 2024 to 2027. The anticipated improvement in adjusted EBITDA margins, attributed to enhanced efficiencies, supports UBS’s bullish view on the company.

2. Walt Disney Co. (Ticker: DIS)

Year-to-Date Performance: +2%
Predicted Upside: +21%
UBS remains optimistic about Disney, particularly regarding its parks division, which is expected to drive growth as new attractions and cruise capacities come online. With a forecasted EPS growth rate of approximately 17% CAGR through 2027, Disney stands out as a compelling investment.

3. American Tower Corporation (Ticker: AMT)

Year-to-Date Performance: +6%
Predicted Upside: +35%
UBS analysts anticipate that American Tower will experience significant growth due to heightened carrier activity in the U.S. and accelerated international expansion, forecasting annual growth of 6-8% from 2025 to 2027.

4. Amazon (Ticker: AMZN)

Year-to-Date Performance: -0.4%
Predicted Upside: +23%
Amazon’s extensive investments in its e-commerce, cloud, and advertising divisions position the company favorably for future growth. UBS predicts a notable increase in operating margins, forecasting steady growth likely to outpace peers, driven by increased revenue generation.

5. AppLovin Corp. (Ticker: APP)

Year-to-Date Performance: +108%
Predicted Upside: +13%
AppLovin’s impressive year-to-date performance is attributed to ongoing demand and supply expansion initiatives. Analysts expect these factors to positively impact the company’s key products, driving growth in the coming year.

6. Mastercard (Ticker: MA)

Year-to-Date Performance: +8%
Predicted Upside: +21%
Mastercard’s diversified exposure across various spending categories positions it beneficially in the fintech space. With a strong growth trajectory in value-added services and robust profitability metrics, Mastercard remains an attractive investment option.

7. Marvell Technology Group (Ticker: MRVL)

Year-to-Date Performance: -26%
Predicted Upside: +14%
Despite a challenging year-to-date performance, Marvell is expected to grow its revenue from custom ASICs in collaboration with Amazon. The anticipated growth reflects confidence in Marvell’s capabilities.

8. Snowflake (Ticker: SNOW)

Year-to-Date Performance: +42%
Predicted Upside: +27%
Snowflake’s focus on data migration and modernization, particularly driven by the AI boom, positions it well for growth. UBS forecasts sustained momentum supported by its core product offerings and stable customer consumption trends.

9. Varonis Systems (Ticker: VRNS)

Year-to-Date Performance: +28%
Predicted Upside: +22%
Varonis’s focus on data security and its partnership with Microsoft for AI-driven solutions capitalize on the rising demand for robust security frameworks in enterprises, supporting continued growth in revenues.

10. Braze Inc. (Ticker: BRZE)

Year-to-Date Performance: -31%
Predicted Upside: +43%
Despite a decline year-to-date, Braze presents a unique investment opportunity. The company, trading at a discount compared to its peers, holds strong potential for sustained growth driven by increasing customer demand.

Conclusion

UBS’s top ten stock picks present intriguing opportunities within the technology, media, and telecommunications sectors. These selections indicate a focus on companies demonstrating considerable potential for growth, supported by strength in key operational areas and solid strategic positioning within their respective markets. While each stock presents unique challenges and risks—some showing negative performance at present—the long-term growth trajectories (as projected by UBS) suggest that investors might find rewarding opportunities in these selections.

As tech, media, and telecom industries continue to evolve and capitalize on new trends, including increased digitalization and consumer engagement, investors may find it prudent to explore these high-conviction stock picks as part of a diversified investment strategy.

Always remember to analyze the broader economic environment, accompanying risks, and your investment objectives before investing. This will ensure your portfolio aligns well with both the current market landscape and your financial goals.

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