Wedbush’s Top Predictions for the Tech Sector in 2025

1. Tech M&A to Surge by 50%

The anticipated departure of Lina Khan from the FTC is expected to reduce regulatory scrutiny, paving the way for a boom in tech mergers and acquisitions (M&A). Wedbush forecasts public deal-making to increase by over 50%, driven by activity in software, cybersecurity, AI infrastructure, and consumer technology.

2. Tech Stocks to Climb Another 25%

Building on 2024’s strong performance, Wedbush projects a further 25% increase in tech stock valuations. This growth will be fueled by the ongoing AI revolution and the ripple effects of increased spending on AI and tech infrastructure.

3. The First $4 Trillion Market Cap Companies

Wedbush analysts believe Apple will make history by becoming the first $4 trillion company, spurred by robust demand for the iPhone 16 and upcoming AI-driven features.

• Nvidia and Microsoft are expected to join Apple in this exclusive club, driven by rapid advancements in the AI revolution.

4. AI CapEx to Exceed $1 Trillion

Wedbush anticipates global investment in AI to surpass $1 trillion in 2025. This wave of spending will drive software innovation, AI infrastructure, and transformative use cases across enterprise and consumer markets.

5. Tesla to Reach a $2 Trillion Market Cap

Tesla’s advancements in Full Self-Driving (FSD) technology and the launch of its Cybercab service in early 2026 could propel the company to a $2 trillion market valuation. Analysts suggest autonomous technology alone represents a $1 trillion opportunity.

6. Reduced Antitrust Pressure on Big Tech

While concerns about tech breakups and antitrust scrutiny persist, Wedbush predicts minimal structural changes for companies like Microsoft, Amazon, and Alphabet. Regulatory "bark" is expected to remain worse than its "bite."

7. Cybersecurity: A Key Growth Sector

As cloud adoption and AI expand, the cybersecurity sector is poised for significant growth, potentially exceeding 30%. Increased M&A activity is likely to reshape this robust sub-sector.

8. Palantir to Emerge as the Next Oracle

Wedbush names Palantir as the “most underappreciated tech name” in its coverage. The firm’s AI Platform (AIP) is expected to drive a breakout year, solidifying Palantir’s role as a leader in AI-driven enterprise solutions.

9. Apple’s iPhone Supercycle

The launch of the iPhone 16 is forecasted to kick off a multi-year supercycle, with record shipments exceeding 240 million units in 2025. Analysts see this as a pivotal moment for Apple as it integrates AI features into its consumer ecosystem.

10. Elon Musk’s Role in US-China Tariff Talks

Elon Musk is anticipated to play a critical role in US-China trade negotiations, particularly around AI-related tariffs. Wedbush expects Musk’s involvement to secure favourable outcomes for tech giants like Apple, Tesla, and Nvidia.

Conclusion: A Year of Transformation for Tech

Wedbush’s 2025 outlook highlights a transformative year for the technology sector, driven by breakthroughs in AI, record-setting valuations, and robust growth in emerging sub-sectors like cybersecurity and autonomous technology. For investors, these predictions underscore the importance of staying attuned to key players and trends shaping the industry’s future.

(Souces: investing.com, ChatGPT)