The US technology sector is booming, driven by the advent of generative artificial intelligence (AI) and a surge in digitalisation.
The strong demand for cloud solutions and more complex computing power means that the semiconductor space should enjoy continued growth.
If you are looking for suitable growth stocks, this sector represents a golden opportunity to gain a front-row seat to the innovations within the technology sector.
We shine the spotlight on five Singapore technology-related stocks that you can consider adding to your buy watchlist.
PC Partner Group (SGX: PCT)
PC Partner is a manufacturer of computer electronics with overseas offices that sells its own brand of products.
These products include video graphics cards, mini personal computers, motherboards, and gaming hardware.
The group reported a strong set of financial results for 2024.
Revenue rose 10% year on year to HK$10.1 billion while gross profit jumped 36.4% year on year to HK$955.5 million.
Gross margin expanded from 7.6% to 9.5%.
Net profit more than quadrupled year on year from HK$60.8 million to HK$262.1 million.
However, PC Partner declared a final dividend of HK$0.15, lower than the prior year’s HK$0.20.
The group has relocated its headquarters to Singapore and is also building a new manufacturing facility in Batam, Indonesia, to expand its presence in Southeast Asia and explore new business opportunities.
With graphics processing unit (GPU) market leader Nvidia (NASDAQ: NVDA) releasing its next-generation Blackwell GPU, PC Partner believes that this new product will trigger strong demand in the market and benefit its business.
PC Partner will continue to look into new product development to deliver increasing returns to its shareholders.
AEM Holdings (SGX: AWX)
AEM provides comprehensive semiconductor and electronics test solutions.
The group has manufacturing plants located in Singapore, Malaysia, Indonesia, and a few other countries along with a global network of engineering support and sales offices.
The group reported a mixed set of results for 2024 owing to the semiconductor downturn post-2022.
Revenue fell 21% year on year to S$380.4 million but operating profit rose 31% year on year to S$18 million as 2023 saw an inventory write-off posted to the profit and loss statement.
Net profit stood at S$11.6 million, reversing the net loss of S$1.2 million in 2023.
Revenue for 2024 was higher due in part to a customer’s revenue pull-in from 2025. The group also achieved new design wins for new high-performance computing (HPC) devices.
For the first half of 2025 (1H 2025), AEM expects revenue to be in the range of S$155 million to S$170 million.
Even at the high end of this range, it still falls short of 1H 2024’s revenue of S$173.6 million.
Management expects a stronger 2H 2025 driven by the ramp-up of its customers’ devices and the recovery of the contract manufacturing business.
Frencken (SGX: E28)
Frencken is a technology solutions provider for multinational corporations.
The group engages and works with its clients to develop customised solutions in their respective fields.
For 2024, Frencken reported a 6.9% year-on-year increase in revenue to S$794.3 million.
Net profit climbed 14.3% year on year to S$37.1 million.
The business also generated a positive free cash flow of S$34.9 million, 58.3% higher than a year ago.
A first and final dividend of S$0.0261 was declared, higher than the S$0.0228 paid out in the previous year.
Frencken is confident of posting higher revenue for 1H 2025 compared with 2H 2024, with the semiconductor division leading this growth.
The group also intends to enhance and expand its production resources in Singapore to increase efficiency and improve its capabilities.
Frencken also expects to open a new manufacturing facility in the US in 1H 2025 in a sign of confidence in its future.
CSE Global (SGX: 544)
CSE Global is a systems integrator that provides electrification, communications, and automation solutions across different industries.
2024 saw an admirable performance from the engineering group.
Revenue rose 18.8% year on year to S$861.2 million while gross profit climbed 20.7% year on year to S$241.2 million.
Net profit stood at S$26.3 million, up almost 17% year on year.
If exceptional items were excluded, CSE Global’s net profit would have soared 63.2% year on year to S$36.8 million.
However, the group’s free cash flow generation saw a sharp plunge from S$37.1 million in 2023 to S$12.3 million in 2024, representing a year-on-year drop of almost two-thirds.
The group’s order intake for 2024 also fell by 19% year on year to S$800.7 million, with its order book as of 31 December 2024 coming in at S$672.6 million, down 8% year on year.
Consequently, CSE Global also dropped its final dividend to S$0.0115 from S$0.015 a year ago.
The engineering group will further expand its capacity for the Electrification business in the coming months, particularly in the data centre market.
UMS Integration (SGX: 558)
UMS Integration provides equipment manufacturing and engineering services to original equipment manufacturers (OEMs) of semiconductors and related products.
Like AEM, UMS Integration is also suffering from the effects of the semiconductor downturn.
2024 saw revenue dip 19% year on year to S$242.1 million.
Net profit plunged 32% year on year to S$40.6 million.
Free cash flow also tumbled 54.1% year on year to S$23 million.
The group proposed a final dividend of S$0.02, slightly below the S$0.022 that was paid out for 2023.
CEO Andy Luong painted an optimistic picture.
UMS Integration’s new Penang facility has commenced volume production for its new customer and expects significant improvements in delivery as production ramps up.
Both the group’s two major global semiconductor customers have provided positive outlooks for 2025, and UMS Integration is working on several new product introductions in the coming months.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
