Wedbush Predicts 25% Tech Stock Growth in 2025, Names Top 10 Winners
Wednesday, Jan 1, 2025 7:56 am ET
1min read Wedbush expects tech stocks to rise 25% in 2025 due to the AI Revolution, stronger AI initiatives, and a "goldilocks foundation" for Big Tech and Tesla. The firm's Top 10 Tech Winners include Nvidia, Microsoft, Palantir, Tesla, Google, Apple, MongoDB, Pegasystems, Snowflake, and Salesforce. Despite potential "white-knuckle moments" from Fed worries, China tariffs, and valuation concerns, Wedbush believes this will create opportunities to own tech stocks and key names.
The technology sector is poised for a significant surge in the coming years, with Wedbush Securities expecting a 25% increase in tech stocks by 2025. This optimistic outlook is fueled by the ongoing AI revolution and the enterprise application of Large Language Models (LLMs) [1].Nvidia (NVDA) and Microsoft (MSFT) are leading the charge as the top picks from Wedbush's list of AI-driven winners. Nvidia, in particular, is expected to benefit from its data centers and GPU impact, with cloud giants like Microsoft Azure, Google Cloud, and Amazon Web Services (AMZN) enabling enterprises to scale AI solutions [1].
Microsoft, on the other hand, is expected to capitalize on its strong position in the software industry. According to Wedbush, Salesforce (CRM) and Palantir (PLTR) are the premier software companies playing in this AI wave, with massive demand for AI-integrated platforms across industries [1].
Tesla (TSLA) also makes the list as a key player in the AI revolution, with its autonomous driving technology and data generation capabilities providing significant opportunities for growth [1].
The AI revolution is expected to drive over $2 trillion in incremental AI capital expenditures, fueled by generative AI adoption and the enterprise application of LLMs [1]. This presents significant growth opportunities for software and hardware leaders, as the sector is still in the early stages of AI's impact [2].
Despite potential concerns from the Federal Reserve, China tariffs, and valuation concerns, Wedbush believes these challenges will create opportunities to own tech stocks and key names [1]. The firm's bullish outlook is supported by the multiplier effect of AI spending, with every dollar invested in AI chips returning $8 to $10 across the tech sector [2].
References:
[1] Gurufocus. (2025, January 5). Nvidia and Microsoft top tech picks as Wedbush predicts 25% rally in 2025. Retrieved January 10, 2025, from https://www.gurufocus.com/news/2642973/nvidia-and-microsoft-top-tech-picks-as-wedbush-predicts-25-rally-in-2025
[2] Wallstreetpit. (2025, January 6). 2nd inning AI boom: Wedbush's Dan Ives on techs bullish future. Retrieved January 10, 2025, from https://wallstreetpit.com/121988-2nd-inning-ai-boom-wedbushs-dan-ives-on-techs-bullish-future/
