In recent months, tech stocks have consistently captured investors’ attention as a result of explosive advancements in Artificial Intelligence (AI) and an ever-evolving semiconductor industry. These developments have ignited fierce growth and innovation across the sector, bringing numerous tech companies into the spotlight. Despite this buzz, there is a palpable sense of fear among some investors. Many worry the tech sector might be overvalued. This caution is understandable, given the rapid rise in tech stock prices and the volatility inherent in high-growth markets.

However, not all tech stocks are created equal, and many exhibit attractive attributes that make them worthy of attention. In this article, we will explore three tech stocks that stand out as particularly hot right now. Each of these companies demonstrates unique strengths and potential. They’re each notable picks for investors keeping an eye on some of the hottest names in the tech space.

Advanced Micro Devices (AMD)

First on the list is Advanced Micro Devices (NASDAQ:AMD). The semiconductor giant is at the forefront of the AI race due to its cutting-edge technology and GPU designs tailored for AI workloads. While AMD lags behind Nvidia in the software and hardware stack — Nvidia’s (NASDAQ:NVDA) CUDA platform and specialized AI chips like the A100 and H100 have become the standard thus far — AMD is making notable progress with its own AI-focused GPUs, like the MI300 series, and partnerships to improve its overall ecosystem.

For this reason, I believe that AMD’s latest advancements position it as a strong contender in the AI chip market. Also note that while the stock has fallen modestly from its 52-week high, it remains expensive with a P/E ratio of 40X. Still, this multiple could be justified if AMD continues to capitalize on the rising AI infrastructure spending. This would lead to sustained revenue and earnings growth.

In any case, even if you don’t necessarily feel bullish about AMD’s investment case, I urge you to keep a close watch on the company’s developments. Noteworthy progress could eventually lead to a tempting opportunity. As AMD advances its AI capabilities, it is poised to become a more active competitor in the AI chip market, potentially strengthening positive investor sentiment toward the stock.

Oracle (ORCL)

Another hot tech stock to pay close attention to these days is Oracle (NYSE:ORCL). This might be surprising, given the company’s reputation for its legacy database systems. That said, this positions Oracle well in the current tech landscape. Its legacy division is still the backbone of many enterprises. It’s known for its reliability, scalability and unmatched security features.

Additionally, it generates substantial cash flow, which the company then utilizes to fuel growth in its rapidly expanding cloud business. In fact, Oracle’s cloud division is actively competing with Microsoft’s (NASDAQ:MSFT) Azure, Alphabet’s (NASDAQ:GOOGL, NASDAQ:GOOG) Google Cloud and Amazon’s (NASDAQ:AMZN) Amazon Web Services (AWS).

Oracle has invested heavily in expanding its cloud offerings lately, focusing on areas such as autonomous databases and AI-driven analytics. These moves have revived Oracle’s growth, leading to a re-acceleration in revenue growth. Specifically, Oracle’s revenues have grown at a compound annual growth rate (CAGR) of 9.4% over the past three years after being relatively flat between 2012 and 2020. It’s certainly a stock to keep a close eye on.

Salesforce (CRM)

The last stock on my list is Salesforce (NYSE:CRM). Salesforce is a rather hot stock to watch, especially given that it’s trading well below its 52-week highs after the dip that occurred between April and June. The company leads the customer relationship management software while benefiting from the ongoing AI tailwind. Therefore, the stock could present a particularly strong opportunity at its current price levels.

To be fair, the fact investors remain somewhat skeptical regarding the stock’s investment case is valid. In its latest Q1 results for fiscal 2025, Salesforce missed revenue estimates, marking only the second instance in 20 years where the company fell short of the Street’s expectations. The first miss was in Q4 of 2006, making it just two revenue misses in 80 quarters. Also, the 10.7% revenue increase was the weakest in the company’s history, and management’s guidance for Q2 implies an additional deceleration, with revenue growth projected to range between 7% and 8%.

However, I would focus on the bigger picture. Despite the relatively underwhelming top-line performance, Salesforce has made significant strides in expanding its margins and scaling profitability. This is a trend that Wall Street seems to overlook. The company achieved an adjusted operating margin of 32.1% in Q1, a 450 basis point increase from the previous year. Therefore, despite the revenue growth deceleration, Salesforce grew its operating cash flow by an impressive 39% to $6.25 billion.

The current disparity between Salesforce’s underlying profitability improvements and lagging share price makes ie one of the hottest stocks in tech today, even though most investors overlook this name.

On the date of publication, Nikolaos Sismanis did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.