Wedbush Forecasts 25% Surge in Tech Stocks by 2025
Investing.com — Wedbush forecasts a 25% surge in technology stocks in 2025, driven by the continuing AI boom. The investment bank predicts AI-related capital expenditure (capex) will exceed $2 trillion over the next three years.
Key Growth Factors
According to Wedbush, three key factors will drive the tech industry’s growth:
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Government Initiatives: Major AI initiatives from the US government, especially under a potential Trump administration, are expected to benefit companies like Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL), Palantir (NASDAQ:PLTR), and Oracle (NYSE:ORCL). The focus on AI is predicted to have significant implications, especially for the defense sector.
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Global Investment Strategy: President-elect Trump and SoftBank Group Corp. (TYO:9984) CEO Masayoshi Son announced a $100 billion investment into the US over the next four years. This funding aims to create 100,000 jobs focused on AI and related infrastructure. Wedbush analysts view this as a positive backdrop for further global AI investments in the US, contributing to a bullish scenario for the tech and AI sectors.
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Regulatory Changes: The departure of Lina Khan from the Federal Trade Commission (FTC) is perceived as a significant positive change for the tech industry. With Andrew Ferguson taking over, Wedbush anticipates a rollback of Khan's stringent anti-tech policies, potentially leading to an increase in tech mergers and acquisitions. Analysts, led by Daniel Ives, expressed optimism that this change is timely amidst the AI arms race.
Impact on Tesla
Wedbush believes that a Trump victory would be particularly beneficial for Tesla (NASDAQ:TSLA) and its CEO, Elon Musk. The firm expects that Trump’s policies would expedite Tesla's autonomous and Full Self-Driving (FSD) initiatives, advancing their 2026/2027 goals for autonomous vehicles. Analysts stated: "We believe a Trump White House helps unlock the $1 trillion of autonomous/AI value to Tesla's stock as autonomous/FSD is accelerated starting in 2025 and a key tailwind for Cybercab timing."
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