Though information technology is among the top-performing sectors so far in 2025, the returns are anything but evenly distributed across the tech universe.
When many investors think of tech, they imagine the Magnificent Seven—the titans of the tech space, including Apple Inc. (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG), and their ilk. But digging into performance, as a group, these mega-cap firms have performed about in line with the broader market year-to-date (YTD). For example, the Roundhill Magnificent Seven ETF (BATS: MAGS), an exchange-traded fund (ETF) tracking the performance of these seven firms, has returned 9.6% compared to 9.3% for the S&P 500 over that period.
For a fresh look at the tech space, consider much smaller disruptors like indie Semiconductor Inc. (NASDAQ: INDI), ACM Research Inc. (NASDAQ: ACMR), and Arteris Inc. (NASDAQ: AIP). Though only one of these companies has outperformed the Magnificent Seven YTD, all three have tremendous potential, analyst support, and significantly less investor attention.
indie Semiconductor: Quietly Leading the Automotive Chip Revolution
indie is a specialized semiconductor maker that caters specifically to the automotive industry. The small firm—it has a market cap under $1 billion—beat on revenue in the second quarter of the year as non-GAAP gross margin came in at 49.1% despite a difficult environment for automotive companies. The company's advanced driver assistance system (ADAS) software and components are highlights, as the firm is preparing to scale production of its 77 GHz radar chipset later this year.
At the same time, indie has also found success in photonics with its LXM laser, a product that could be transformational for the increasingly popular LiDAR technology often used in autonomous vehicles. The addressable market for this product alone could reach as high as $5 billion by 2030. The company has managed to do all this while also chipping away at quarterly losses, reducing operating expenses, and expanding its technological reach with the purchase of Emotion3D to broaden into the perception software licensing space.
With its strong intellectual property and positive relationships with original equipment manufacturers (OEM), it's no surprise that indie five out of six analysts covered by MarketBeat have given the stock a Buy rating. Though it remains unprofitable and is therefore on the riskier side, analysts see nearly 39% in upside potential.
ACM: Chip Equipment Innovator Anchored in China
ACM plays an important role in the chipmaking space for its single-wafer wet cleaning equipment. The company is in a unique position: it is based in the United States but increasingly conducts its business in China. While this does leave it vulnerable to the impacts of the ongoing trade war between these two nations, ACM has so far weathered the storm successfully. The company's revenue climbed by more than 6% year-over-year (YOY) to over $215 million for the latest quarter, beating predictions, on sales of its Ultra C WB wet bench tool.
The Chinese semiconductor space is growing rapidly, and ACM's product lineup is expanding to meet increased demand. The company will launch multiple new platforms and tools in the coming quarters, with the impact on revenue predicted to begin by 2026. In the latest earnings report, ACM even went so far as to nearly double its long-term revenue forecast for its Chinese business to $2.5 billion.
ACMR shares have climbed by almost 14% YTD, and with a consensus price target of $26.33, it seems analysts are anticipating further upside on the horizon. Though the company is not often reviewed by analysts, two out of three have assigned it a Buy rating.
Arteris: Powering the Backbone of AI Chips
Another semiconductor firm, Arteris is responsible for on-chip interconnect fabric technology used in interconnect applications. The company plays an often-overlooked but crucial role in the development of many AI and related chips. Although its business is high-margin and capitalizes on royalties, Arteris has long struggled with profitability and the path out of sustained losses is not entirely clear.
In its Q2 2025 earnings report, the company posted $16.5 million in revenue, which beat expectations. While it remains unprofitable, with a GAAP net loss of $9.13 million (or 22 cents per share), key performance indicators like Annual Contract Value and Remaining Performance Obligations rose by double digits YOY, signaling solid forward momentum.
For a very small firm—the market cap is under $400 million—Arteris has the potential to have an outsized impact on what is arguably the hottest industry globally. The company's low debt levels and compelling balance sheet also help it stand out. This may be why all three analysts rating AIP shares have given it a Buy rating, and why those analysts collectively expect shares to climb by nearly two-thirds.