The ‘Magnificent 7’ (Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Nvidia) have been phenomenal investments over the past decade.

Nonetheless just lately, they appear to have stalled (the Roundhill Magnificent Seven ETF is definitely down 12 months to this point). The excellent news is that there’s a brand new wave of Nasdaq tech shares coming by way of right this moment. These development shares are delivering huge positive factors for traders proper now and so they seem to have loads of development potential trying forward.

5 hovering Nasdaq shares

Within the desk under, I’ve highlighted 5 Nasdaq shares which have delivered unbelievable positive factors in 2025. All are tech centered and rising quickly.

Of the 5, Zscaler‘s (NASDAQ: ZS) delivered the biggest gains. Year to date, it’s up 67%.

As you possibly can see from the market-cap column, most of those firms are far smaller than the Magazine 7 firms (the place the typical market-cap is about $2.4trn). Zscaler has the smallest market-cap at $47bn – lower than 2% the dimensions of Apple’s market-cap.

The smaller measurement of this cohort may very well be thought-about a optimistic. Typically talking, the smaller an organization is, the simpler it’s for it to double in measurement.

Scalable companies

Now, I’m not saying that every one these tech shares are Buys right this moment. Just a few look a little bit dangerous at present ranges, given their valuations.

Palantir, for instance, at the moment trades at about 73 instances this 12 months’s gross sales forecast. That’s a sky-high valuation and it’s pricing in quite a lot of future development.

However all seem to have quite a lot of long-term development potential. Typically, the businesses are very scalable – an element that has helped the Magazine 7 firms have success over the past decade.

It’s price noting that there are another very scalable US tech shares that aren’t listed on the Nasdaq which are doing effectively in 2025 together with the likes of Uber and Snowflake. Yr to this point, each are up greater than 20%.

I’m bullish on cybersecurity

Of the 5 Nasdaq shares listed, I solely personal two of those shares right this moment. These are the cybersecurity firms – CrowdStrike and Zscaler.

I imagine the cybersecurity business goes to balloon in measurement over the following decade. And I see these two firms as a great way to capitalise on the business development.

I’ve coated CrowdStrike just a few instances just lately at The Motley Idiot so let’s zoom in on Zscaler right here. It presents a complicated cloud-based cybersecurity platform (that leverages the facility of AI) and is rising quickly.

Over its final 5 monetary years, its income’s climbed from $303m to $2,168m – development of over 600%. This monetary 12 months (ending 31 July) sees Wall Avenue count on its income to return in at $2,658m – development of 23%.

It’s price noting that final month, the corporate posted robust quarterly outcomes and raised its steerage for FY2025 income and earnings. On the again of this steerage improve, plenty of analysts elevated their price targets for the inventory.

Now, one draw back to this inventory is that its income are nonetheless small. That is more likely to lead to share price volatility at instances.

One other concern to concentrate on right here is that cybersecurity is a dynamic business. Threats are at all times evolving and cybersecurity merchandise can develop into out of date shortly.

I imagine this inventory’s price contemplating on pullbacks, nonetheless. Over the following 5 years, I believe it ought to do effectively.