The Growing Need for STEM and Technical Studies in American Higher Education: Exploring EdTech and Educational Infrastructure Investment Prospects

STEM Enrollment and EdTech Investment Reshape U.S. Higher Education

Higher education in the United States is experiencing a dramatic transformation, with student interest in STEM disciplines—especially artificial intelligence (AI), cybersecurity, and engineering technology—reaching record highs. Universities such as Farmingdale State College and the University of South Florida are expanding their offerings to accommodate this surge, while EdTech companies and infrastructure providers are stepping in to deliver flexible, skills-oriented training solutions. For investors, these developments signal a promising chance to participate in the next era of educational advancement and workforce readiness.

STEM Fields See Unprecedented Growth

Recent years have witnessed a remarkable increase in enrollment for AI, cybersecurity, and engineering technology programs. By 2025, the number of U.S. undergraduate AI programs had more than doubled compared to 2024, with 193 programs available nationwide. The University of South Florida has established a dedicated college for AI and cybersecurity, enrolling over 3,000 students. At MIT, the "AI and decision-making" major has quickly become the institution’s second-largest undergraduate program, attracting nearly 330 students. In contrast, traditional computer science programs have seen a downturn, with 62% of computing departments reporting fewer undergraduates during the same timeframe.

Engineering technology is also on the rise at schools like Farmingdale State College, which has committed $75 million to a new Computer Sciences Center in an effort to double its computing student body. This investment reflects a broader trend among colleges to better align with evolving industry requirements.

On a national scale, the U.S. Bureau of Labor Statistics anticipates a 17.9% increase in software developer positions between 2023 and 2033. Additionally, job postings related to AI jumped by 56.1% in 2025, highlighting a clear movement toward specialized technical education.

EdTech Bridges the Skills Divide

The EdTech sector is rapidly evolving to address the growing demand for practical, career-focused training. Valued at $277.2 billion in 2025, the global EdTech market is forecasted to reach $907.7 billion by 2034, fueled by innovations in AI-driven personalized learning and immersive VR/AR experiences. Startups such as Protege, which secured $25 million in Series A funding in August 2025, and Harmonic, which raised $100 million in Series B, are utilizing AI to create engaging, job-oriented educational platforms. Meanwhile, companies like Pluralsight and Labster are gaining popularity by offering interactive labs and simulation-based learning in fields like cybersecurity, data science, and engineering.

Collaboration between federal agencies and educational institutions is further accelerating progress. For instance, Purdue University Northwest and the University of New Haven have obtained significant grants to bolster cybersecurity education. These efforts not only help close the STEM skills gap but also present attractive opportunities for long-term investment.

Investment Opportunities: ETFs and Equities

Those looking to invest in this trend have several options. The Global X Education ETF (EDUT) provides targeted exposure to global education products and services. While specific 2025 performance figures for EDUT are not yet available, the technology sector as a whole has performed strongly. The Vanguard Information Technology ETF (VGT) achieved an average annualized return of 20.76% over the past year, surpassing its category average. VGT’s leading holdings—Nvidia, Microsoft, and Apple—demonstrate the influence of major tech firms in advancing AI and STEM innovation. Industry experts expect VGT to maintain its robust performance.

Thematic funds like the Evolve FANGMA Index ETF (TECH) and sector-focused ETFs such as VGT offer diversified access to companies shaping the future of education and technology. For those willing to take on more risk, direct investment in EdTech startups like Protege and Mindstone Learning—which help non-technical professionals acquire AI expertise—may offer significant growth potential.

Broader Impacts on Society and the Economy

The rapid expansion of STEM education and EdTech investment is having far-reaching effects on both society and the economy. Industry research suggests that by 2034, widespread adoption of AI in education could deliver returns on investment 20–75% higher for institutions. This evolution not only addresses immediate talent shortages but also strengthens long-term economic stability. For example, the AI segment in K-12 education is expected to grow from $390.8 million in 2024 to $7.95 billion by 2033, reflecting a broader societal shift toward technical proficiency.

Nevertheless, challenges persist. Traditional universities must adapt to remain relevant, while EdTech startups face competition from established players and new entrants alike. Investors are advised to focus on organizations with strong industry partnerships, scalable business models, and clear alignment with workforce needs.

Summary

The rising demand for STEM and technical education is redefining the landscape of American higher education. From major investments in AI and cybersecurity programs to the rapid evolution of EdTech, the sector is set for continued expansion. Investors can take advantage of this momentum through ETFs like EDUT and VGT, as well as by supporting high-growth startups. As employers increasingly value skills over traditional degrees, the convergence of education and technology will remain a dynamic arena for both innovation and investment.