Morningstar’s 5 best tech stock ideas for Australia and the US

As big tech continues to push markets to record highs across 2025, who doesn’t love a tech stock tip? Even more so as some prices veer beyond expensive, and while concerns continue to swirl about whether we are facing an AI bubble or not. Views are mixed, but bubble or not, the truth is AI isn’t going anywhere, and we can’t avoid it – at home or in the stock market.

From there, it becomes a question of which companies are resilient and innovating well and avoiding those that are becoming complacent. We all know the Magnificent Seven, but who else might be worth a closer look?

Morningstar have published its Best Global Stock Ideas for November, and as always, there’s an interesting mix. With more than 80 names on the list, I focused on everyone’s favourite theme and sector – Technology – and took a look at the top picks for Australia and the US, thus selected because of the accessibility of these markets on most trading platforms.

Technology may not be the biggest sector on the ASX, but there are two names for Australia. One suggestion comes with a side of controversy. Read on and see why.

The best tech ideas from Australia

1. WiseTech Global (ASX: WTC)

Only a week ago, the Australian Federal Police raided WiseTech’s head offices on the back of an ASIC investigation into share trading activities from three directors across 2024-2025. No charges have been laid at this stage.

WiseTech has been plagued by controversy in the last year, starting with concerns over its governance and hit by issues in its founder’s private life, which saw Richard White step down as CEO.

The shipping logistics business is a new addition to Morningstar’s monthly list and prices are at their lowest in over a year, plunging after the AFP raid.

Morningstar analysts stated, “We believe these issues and the risk of White leaving are overly discounted in the price. The business is well-established with a deep bench of talented people, it has no competitors of note and it is still early in its market opportunity.”

Antares’ Nick Pachias agreed in last week’s Buy Hold Sell, highlighting a new commercial model being rolled out and no competitor globally. He also added, “you’ve got an acquisition which will give them significant growth in the longer term, solving the dead leg of empty containers going around the world.” It is also tipped as a Buy in Market Index’s Broker Consensus Tool.

On the flip side, Morgans Financial acknowledged WiseTech’s strong market position but removed it from their best ideas list, concerned about the governance issues.

WiseTech holds a Five-Star Morningstar rating and was deemed to be at a 50% discount to its fair value estimate of $138/share at 31 October 2025.

2. SiteMinder Ltd (ASX: SDR)

Livewire readers won’t be surprised to see SiteMinder make the list.

The hotel e-commerce site has featured as a pick for a number of fund managers and brokers. Macquarie recently highlighted it as a top small-cap pick, while Seneca Financial’s Ben Richards nominated it as a name that would dominate in 10 years’ time, pointing to plenty of room to grow in this recent wire.

Lakehouse Capital’s Donny Buchanan also described it as a “rare offering”, saying, “with a clean balance sheet, early-stage products driving accelerated revenue, strong unit economics, and growing profitability, SiteMinder’s 6x enterprise value to ARR valuation is attractive for a fast-growing global software company”.

Broker consensus on Market Index tips it as a Strong Buy.

Of SiteMinder, Morningstar analysts noted its strong position and opportunity in the market.

“We expect the hotel industry will consolidate around scaled software providers like SiteMinder which can fractionalise large fixed technological and regulatory costs across a larger customer base. Economic downturns will only accelerate this process, in our view.”

SiteMinder holds a Four-Star Morningstar rating and was deemed to be at a 34% discount to fair value estimates of $10.75 at 31 October 2025.

The best tech ideas from the US

1. Sabre Corp (NYSE: SABR)

The largest global distribution system (GDS) provider for air bookings, Sabre’s performance has been weak over the last year, falling 40%. It’s not profitable yet, but it is growing its revenue at a reasonable pace. The software and travel tech company is also currently embroiled in a court case against British Airways for reimbursement of costs it incurred doing business with the airline.

Market consensus for this small-cap company places it as a Hold, according to Business Insider.

Morningstar notes that Sabre is likely to deal with uncertainty and volatility in the near-term, off the back of US policy and geopolitical uncertainty, but believes the business is uniquely positioned and has a competitive advantage.

“Replicating Sabre's distribution platform would face material aggregation and/or processing hurdles. During 2024, American Airlines reported weaker sales, driven by its decision to deemphasise global distribution system platforms. American is now leaning back into GDS networks to try to regain lost corporate business. Platform investments in the cloud, along with new distribution capabilities and sales opportunities in ancillary, hotel IT, and airline IT, further entrench Sabre's customers, supporting its competitive advantages,” Morningstar analysts stated.

Sabre Corp holds a Four-Star Morningstar rating and was deemed to be at a 32% discount to fair value estimates of US$3.00/share at 31 October 2025.

2. HubSpot Inc (NYSE: HUBS)

The all-in-one CRM platform provider facilitates marketing, sales and services provisions for its customer base. HubSpot has traded down over the year but there has been a recent rebound in prices off the back of product launches, such as loop marketing and strategic partnership announcements, like its direct ChatGPT integration and an AI connector to Claude.

This week, it announced its agreement to acquire Answer Engine Optimisation (AEO) start-up business XFunnel – for the unfamiliar, this is the movement away from Search Engine Optimisation (SEO) to feed into tools like ChatGPT and Claude being used as search and answer tools instead. This is expected to be integrated into HubSpot’s existing platform, a significant benefit to small businesses using the platform.

Market consensus for this places it as a Buy, according to Business Insider.

Morningstar have strong conviction in HubSpot’s future, stating “the company has established itself as the standard for scaling midmarket companies, enjoying success in moving upstream to larger organisations.” It is one of their top software picks.

They see HubSpot’s Breeze AI platform as offering the business a widening moat and a growth tailwind.

“Our DCF-based valuation incorporates a 16% compound annual growth rate for revenue stemming from larger deals, improved retention, and new-product penetration, as well as more than 100 basis points of non-GAAP operating margin expansion resulting from leverage across all expense lines,” stated Morningstar analysts.

HubSpot holds a Four-Star Morningstar rating and was deemed to be at a 29% discount to fair value estimates of US$690/share at 31 October 2025.

3. Microsoft Corp (NASDAQ: MSFT)

Interestingly, one of the Magnificent Seven has a place in Morningstar’s top global ideas – and it’s a business that remains popular with fund managers too.

Only last week, Munro Partners’ Nick Griffin cited it as a cornerstone holding and noted, “Microsoft trades at the same multiple today as it did last year, which is the same multiple it traded on three years ago, which is the same as five years ago.”

He sees big potential in Microsoft’s fast-growing cloud business and highlighted that cloud adoption is still early, so there is plenty to come for Microsoft.

Another supporter is Aoris Investment Management, which has previously stated that Microsoft is the only Magnificent Seven company to meet its quality criteria in its 15-stock portfolio.

Microsoft continues to innovate as well as enhance its existing service offering.

Just this week, Microsoft launched the Agentic Launchpad in partnership with NVIDIA and WeTransact to support start-ups and scale-ups with innovative agentic AI systems and solutions. It also announced a partnership with Anyscale, developing an AI-native compute service to be offered on Microsoft Azure.

Market consensus on Microsoft positions it as a Strong Buy, according to TipRanks.

Microsoft also ranks as a top tech pick for Morningstar, and they hold a positive view on the prospects of the Cloud business and the integration of AI across the business and its service offerings.

“With its leadership in public cloud with Azure, partnership with OpenAI, and unmatched distribution, we believe Microsoft is currently a leader in AI and will remain so in the coming years. 

We see a looming catalyst in accelerating Azure revenue in the second half of fiscal 2025 that we think investors will welcome after capacity constraints limited growth, impressive as it actually was, over the last several quarters,” analysts stated.

Microsoft holds a Four-Star Morningstar rating and was deemed to be at a 14% discount to fair value estimates of US$600/share at 31 October 2025.

Around the globe – where else Morningstar is watching

Australians have a tendency to just focus on domestic and US stocks, but it’s worth remembering there’s a big world out there. There are some extraordinary names in Europe and Asia. The likes of Tencent Holdings should be a sharp reminder of that.

While it can be harder to directly invest in these names, depending on what access your trading platform offers and whether they are also listed on US indices, it’s worth keeping note of these names.

Asia top tech ideas

Source: Morningstar, data as at 31 October 2025.

Europe best tech ideas

Source: Morningstar, data as at 31 October 2025.

Will you invest in any of these names? Share your best tech ideas in the comments below.