Nvidia, Microsoft lead Wedbush's top 10 tech winners for AI revolution in 2025
Dec. 31, 2024 7:35 AM ET
By: Ravikash Bakolia, SA News Editor
 JHVEPhoto
Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT) lead the top 10 tech winners for the AI Revolution in 2025, according to a report from Wedbush.
Analysts led by Daniel Ives said they expect tech stocks to be up 25% in 2025 as the Street further digests a less regulatory spider web under Trump in the White House, with Federal Trade Commission Chair Lina Khan days behind them, stronger AI initiatives being on the way, and a "Goldilocks foundation for Big Tech and Tesla looking into 2025 and beyond."
The analysts believe tech stocks will be robust in 2025 on the shoulders of the AI Revolution and over $2T of incremental AI capital expenditure over the next three years.
While there will be some tense instances in 2025 along the way on the heels of Fed worries, China tariff poker game, and stretched valuation moments, this would create the opportunities to own the tech theme and key names, the analysts added.
Wedbush's top 10 tech winners for the AI revolution in 2025 are — Nvidia, Microsoft ( MSFT), Palantir Technologies ( PLTR), Tesla ( TSLA), Alphabet's ( GOOG) ( GOOGL) unit Google, Apple ( AAPL), MongoDB ( MDB), Pegasystems ( PEGA), Snowflake ( SNOW) and Salesforce ( CRM).
"Now the time has come for the broader software space to get in on the AI Party as we believe the use cases are exploding, enterprise consumption phase is ahead of us beginning in 2025," said Ives and his team.
The analysts added that the launch of Large language models, or LLMs, across the board, and the true adoption of generative AI will be a major catalyst for the software sector and key players to benefit from this once in a generation fourth Industrial Revolution set to benefit the tech space.
The analysts believe the two best software plays on the AI Revolution in 2025 remain Palantir and Salesforce, with many well-positioned software vendors joining the AI Party.
Ives and his team noted that Nvidia and cloud stalwarts remain the AI driving force.
"The start of this $2 trillion+ of AI spending all began with the Godfather of AI Jensen [Jensen Huang] and Nvidia as they remain the only game in town with their chips the new gold and oil," said the analysts.
The stalwart cloud/hyper scale players in 2025 will continue to play an instrumental role in this key phase of the AI revolution, being led by Microsoft, while also seeing Google Cloud Platform and Amazon Web Services ( AMZN) both finding major cloud and AI momentum into the coming years. |
