Tech Stocks Set for Double-Digit Rally in 2025, Wedbush Analysts Predict
Wedbush analysts are forecasting a strong bull run for tech stocks, with a double-digit rally expected by the end of this year and even more growth in 2025. Their "AI Revolution" demand thesis is gaining momentum, driven by unprecedented demand for AI chips in the supply chain, particularly led by Nvidia.
The surge in demand for AI is fueling a significant increase in enterprise spending as AI use cases expand across industries. Analysts estimate that the overall AI infrastructure market could grow tenfold by 2027, with a projected $1 trillion in AI capital expenditures over the next three years.
This wave of tech spending is seen as a major tailwind for companies in semiconductors, software, infrastructure, and cybersecurity, as AI-driven models become increasingly central to enterprise operations. Leading tech players like Nvidia and Microsoft are at the forefront of the AI revolution, but other major companies such as Oracle, ServiceNow, Palantir, and Apple are also driving innovation in this space.
Wedbush analysts believe that tech stocks are poised to move higher in the coming years, with a potential 10%+ increase by the end of this year and a further 20% growth in 2025. They see the current tech bull market entering a new phase led by the AI Revolution, with tech spending on AI expected to drive significant growth in the sector.
The firm emphasizes that the market may be underestimating the impact of AI-led tech spending and expects margin and growth benefits from AI to be key drivers of tech stock performance in the future. Despite potential volatility leading up to the U.S. Presidential Election, Wedbush analysts anticipate a very strong Q3 tech earnings season.
In conclusion, investors should pay attention to the growing trend of AI-led tech spending and consider positioning themselves in well-performing tech companies to take advantage of the potential growth opportunities in the market. The AI Revolution is set to reshape the tech sector and drive significant value for investors in the years to come.