On Monday, Wedbush analyst Dan Ives unveiled his top 10 tech winners for the AI revolution into 2025, leaving two major Magnificent 7 players notably absent from the list.
What Happened: In his post, Ives said that the companies are poised to ride the wave of a $2 trillion AI capital expenditure boom over the next three years.
His list of top 10 tech winners for the AI revolution: Nvidia Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), Palantir Technologies Inc. (NASDAQ:PLTR), Tesla Inc. (NASDAQ:TSLA), Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, Apple Inc. (NASDAQ:AAPL), MongoDB Inc. (NASDAQ:MDB), Pegasystems Inc. (NASDAQ:PEGA), Snowflake Inc. (NYSE:SNOW), and Salesforce Inc. (NYSE:CRM).
'Magnificent 7' heavyweights Amazon.com, Inc. (NASDAQ:AMZN) and Meta Platforms, Inc. (NASDAQ:META) were conspicuously absent from the list.
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"We expect tech stocks to be up 25% in 2025," Ives stated, adding that it will be bolstered by "a goldilocks foundation for Big Tech and Tesla" and reduced regulatory hurdles under a Donald Trump-led administration.
Ives also cautioned about potential "white-knuckle moments" in 2025, citing concerns around Fed actions, China trade dynamics, and stretched valuations.
However, he said, "This will create the opportunities to own the tech theme and key names which has been our core investing tech playbook the last 2 years."
We 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 Khan/FTC days in the rear-view mirror, stronger AI initiatives within the Beltway, and a goldilocks foundation for Big Tech into 2025 pic.twitter.com/buam9doR6K
— Dan Ives (@DivesTech) December 30, 2024
Why It Matters: Apple currently leads the market with an impressive valuation of $3.812 trillion, and its stock has surged by 35.85% year-to-date.
Cupertino introduced Apple Intelligence this year, a robust collection of AI tools and features designed to greatly improve the user experience on its devices.
Following closely is Nvidia, with a market cap of $3.367 trillion and an impressive 185.43% year-to-date increase. Nvidia is anticipated to launch its next-generation RTX 5000 series GPUs at CES 2025 scheduled for the second week of January.
Microsoft secures the third spot with a valuation of $3.158 trillion. Alphabet, the parent company of Google, holds a market cap of $2.350.
Amazon rounds out the top five with a valuation of $2.326 trillion, while Meta and Tesla are at number seven and eight with a market cap of $1.492 trillion and $1.339 trillion, respectively.
