Wedbush Securities says Microsoft (MSFT) and Nvidia (NVDA) are set to benefit the most from the AI investment surge expected in 2025. The investment firm, led by five-star analyst Dan Ives, predicts that tech stock prices could rise by 25% due to $2 trillion in AI spending over the next three years. With fewer regulations and growing acceptance of advanced AI, major tech companies are well-positioned to thrive.
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The report also pointed to software companies like Salesforce (CRM) and Palantir (PLTR) as being the potential winners from the adoption of generative AI tools like large language models. Nvidia’s chips are seen as essential for driving AI innovation, while cloud services like Microsoft Azure, Google Cloud, and Amazon Web Services (AMZN) are expected to benefit from the rising demand for AI solutions.
Nevertheless, despite challenges like economic uncertainty and geopolitical risks, 2025 is expected to be a key year for AI adoption across industries. Wedbush sees this as a big chance for investors to double down on tech stocks now that the sector is poised for even more growth. It’s worth noting that, so far, Ives has enjoyed a 52% success rate on his stock ratings, with an average return of 7.4% per rating.
Investor Sentiment Is Positive
Wedbush analysts are not the only ones with a positive outlook on tech stocks. Most impressively, over 21% of the portfolios tracked by TipRanks hold shares of Nvidia. In addition, the average portfolio weighting allocated towards NVDA among those who do have a position is 13%. This suggests that investors of the company are very confident about its future. Indeed, investor sentiment is currently positive, as pictured below.
Which Tech Stock Is the Best Buy?
Turning to Wall Street, out of the aforementioned stocks, analysts think that NVDA stock has the most room to run. In fact, NVDA’s price target of $177.08 per share implies more than 31% upside. On the other hand, they expect the least from PLTR, as its price target of $44.85 per share implies a downside of over 40%.
