Tech stocks will make new all-time highs in the second half of 2025 as investors refocus on AI-driven opportunities, analysts at Wedbush believe.
The firm forecasts a 25% surge in technology stocks in 2025, driven by accelerating investments in artificial intelligence (AI) and favorable regulatory shifts.
“The last month has been a brutal sell-off for tech stocks,” Wedbush analysts wrote, citing investor anxiety over shifting trade, investment, and technology policies. “The worst thing for the markets and tech stocks is uncertainty … and that has defined the last month.”
In a note, Wedbush highlighted that major AI initiatives, particularly under a potential Trump administration, will catalyze the tech sector's growth. Beneficiaries include companies like Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOG), Palantir Technologies Inc (NYSE:PLTR), and Oracle Corp (NYSE:ORCL, ETR:ORC).
What’s more, the US government's AI-focused policies, especially in defense and infrastructure, are expected to attract significant investment. In particular, Wedbush cited President Trump and SoftBank Group CEO Masayoshi Son who announced plans to inject $100 billion into the U.S. over the next four years, creating 100,000 jobs tied to AI and related infrastructure.
Wedbush believes the ongoing AI revolution will drive sustained growth, calling this period “Year 3 of what will be an 8-10 year buildout.” The firm expects AI-related capital expenditures to reach $2 trillion, fueling demand for companies like Nvidia and Microsoft.
“We clearly need stable Trump policy and investors need to know the rules of the game … but that will all happen over the coming months,” the analysts wrote.
Wedbush acknowledged that its bullish calls on Nvidia and other major tech stocks have struggled amid the downturn but reaffirmed its long-term view. “Our stock calls are not for the next few months … it’s for where we see these tech names over the next one, three, and five years.”