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The technology sector is riding on strong adoption of Artificial Intelligence (AI), Generative AI (GenAI) and Agentic AI. The ongoing digitalization wave, courtesy of the rapid deployment of AI and cloud computing, is driving the sector. This has fueled strong demand for high-bandwidth and low-latency networks (5G) as well as hardware chips and components (GPUs, AI accelerators, memory chips, and data center infrastructure). 

These factors bode well for technology stocks, a number of which are set to report quarterly results over the next couple of weeks. Here are four technology stocks — Meta Platforms (META - Free Report), Reddit (RDDT - Free Report), InterDigital (IDCC - Free Report), and AMETEK (AME - Free Report) — that seem well-poised to beat earnings estimates this season.

Technology Stocks Riding on AI Boom, Investments

Rapid deployment of AI is boosting industrial automation with growing usage of the Internet of Things, robotics, and automation. AI is helping in improving ad targeting and boost user engagement. Rising threat complexity is driving demand for cybersecurity software as well as tamper-proof blockchain technology. Although still in early stages, quantum computing has shown promise in solving complex problems in domains like drug discovery and logistics.

AI demand is escalating, and that has increased the need for data center capacity expansion. Leading cloud computing providers like Amazon, Alphabet, Microsoft, and Meta Platforms have multi-year investment plans to support greater cloud capacity and AI deployment. While Microsoft plans to spend $80 billion, Meta Platforms plans to spend $64-$72 billion on AI-related infrastructure development.

Massive investment in chips, particularly graphics processing units (GPUs), and customized accelerators is driving demand for semiconductors. Per the Semiconductor Industry Association data, semiconductor sales in August 2025 were $64.9 billion, up 21.7% year-over-year and 4.4% month-over-month. In July, sales were $62.1 billion, up 3.6% month-over-month. 

Moreover, the PC segment witnessed growth in the third quarter of 2025. IDC estimates 75.8 million units were sold, up 9.4% year-over-year. In contrast, Gartner estimates shipments of 69 million units, up 8.2% year-over-year.

How to Pick Earnings Estimates Beating Stocks?

Finding technology stocks with the potential to beat earnings estimates can be daunting. Our proprietary methodology, however, makes it fairly simple.

You could narrow down the list of choices by looking at stocks that have the combination of a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold) rating and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP is our proprietary methodology for determining stocks that have the best chances to surprise with their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination of ingredients, the odds of a positive earnings surprise are as high as 70%.

Top Bets

Presented below is a brief rundown of the previously-mentioned stocks that are poised to beat estimates.

Meta Platforms

Menlo Park, CA-based Meta Platforms has an Earnings ESP of +3.37% and currently sports a Zacks Rank of #2 (Buy).

Meta Platforms’ focus on integrating AI into its platforms — Facebook, WhatsApp, Instagram, Messenger, and Threads — is driving user engagement. This is expected to boost third-quarter 2025 ad revenues, which, per the Zacks Consensus Estimate, are expected at $48.5 billion, suggesting 21.6% year-over-year growth. The social-media giant is set to report third-quarter 2025 on Oct. 29, 2025.

The Zacks Consensus Estimate for earnings has increased a couple of cents to $6.60 per share over the past month, and it suggests growth of 9.45% over the figure reported in the year-ago quarter.

Meta Platforms, Inc. Price and EPS Surprise
 

Image Source: Zacks Investment Research | Meta Platforms, Inc. Quote

Reddit

San Francisco-based Reddit currently has an Earnings ESP of +20.17% and a Zacks Rank #1 (Strong Buy). The company is scheduled to report third-quarter 2025 results on Oct. 30.

Reddit is benefiting from strategic product enhancements, targeted marketing initiatives and international expansion. The company’s focus on search functionality is playing a significant role in user growth (110 million globally at the end of the second quarter of 2025). Reddit’s core search product boasts 70 million weekly users, while Reddit Answers, its AI-powered search tool, grew to 6 million users in the second quarter of 2025. 

For the third quarter of 2025, Reddit expects revenues between $535 million and $545 million. The Zacks Consensus Estimate for revenues is currently pegged at $549.7 million, which is better than management’s guidance and suggests 57.8% growth from the figure reported in the year-ago quarter.

The consensus mark for earnings has been steady at 52 cents per share over the past month, and it suggests growth of 225% over the figure reported in the year-ago quarter.

Reddit Inc. Price and EPS Surprise
 

Image Source: Zacks Investment Research | Reddit Inc. Quote

InterDigital

Wilmington, DE-based InterDigital is set to report third-quarter 2025 results on Oct. 30. The company has an Earnings ESP of +17.32% and a Zacks Rank of #1 (Strong Buy).

InterDigital’s to-be-reported quarter results are expected to have benefited from strong licensing revenues driven by agreements with smartphone-makers Samsung, Apple, Oppo, and Vivo. The company’s strong PC market footprint, thanks to a licensing deal with HP, is noteworthy.

InterDigital expects existing contracts, including Samsung, to contribute between $136 million and $140 million to third-quarter 2025 recurring revenues. Non-GAAP earnings are expected between $1.52 per share and $1.72 per share.

The consensus estimate for InterDigital’s third-quarter earnings has been steady at $1.79 per share over the past 30 days, and it indicates growth of 9.8% over the figure reported in the year-ago quarter.

InterDigital, Inc. Price and EPS Surprise
 

Image Source: Zacks Investment Research | InterDigital, Inc. Quote

AMETEK

Berwyn, PA-based AMETEK is scheduled to report its third-quarter 2025 results on Oct. 30. The company has an Earnings ESP of +1.21% and a Zacks Rank #2 (Buy) rating.

AMETEK is benefiting from solid momentum across the Electromechanical Group and Electronic Instruments Group segments. Positive contributions from Paragon Medical, Bison Engineering, Virtek Vision, Navitar, Alphasense, Magnetrol International, and Crank Software acquisitions are driving top-line performance. 

For the third quarter of 2025, AMETEK expects overall sales to be up mid-single digits on a percentage basis year-over-year. Adjusted earnings are expected to be in the range of $1.72-$1.76, indicating a year-over-year increase of 4-6%. The consensus mark for earnings has inched up by a penny to $2.46 per share over the past month, and it suggests growth of 134.29% over the figure reported in the year-ago quarter.

AMETEK, Inc. Price and EPS Surprise
 

Image Source: Zacks Investment Research | AMETEK, Inc. Quote

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