Latin Tech Stocks Outpacing Wall Street’s Best

Technology companies based in Latin America have delivered investor returns that are 36% higher than their American counterparts so far in 2025, according to data from Bank of America.

Valor cited Augusto Urmeneta, head of BofA Securities for Latin America, in reporting that the “Magnificent Seven” U.S. tech titans — Amazon, Apple, Meta, Tesla, Nvidia, Google, and Microsoft — have posted a combined negative return of 8% this year.

These American tech giants had a strong performance in 2024. However, momentum was derailed in 2025 as a new wave of tariffs imposed by U.S. President Donald Trump ignited a trade war, weighing heavily on stock valuations.

In contrast, Latin American technology companies have managed to sidestep much of the market turbulence. These firms not only withstood the current global volatility, but also show further potential for stock price appreciation in the coming months.

Latin American tech stocks continue to trade at attractive valuations. The average price-to-earnings ratio stands at 9.6, well below the region’s historical average of 14.6 and significantly cheaper compared to the Nasdaq’s 25.5, which is above its own long-term average of 18.6.

The sector has seen a dramatic recovery in market capitalization over recent years. From a peak of $227 billion in 2021, Latin American tech stocks plunged to $93 billion in 2022. But by 2025, the sector surged back, reaching an all-time high of $231 billion.

Despite this strong rebound, Urmeneta cautions that the Latin American tech market still has growing pains. The sector remains highly concentrated, with just two companies— Mercado Libre and Nubank —accounting for a combined 82% of its total market capitalization. Mercado Libre holds a dominant 55% share, while Nubank represents 27%.

Beyond these giants, the remaining 9% of the sector is divided among approximately 25 other players, including notable names such as XP, Globant, and Stone.

In terms of overall market composition, the technology sector in Latin America is still relatively underdeveloped. Tech stocks account for just 10% of the region’s total equity market, compared to a much larger 30% share in the United States.