BofA update shows where active managers are putting money
Investing.com -- Wedbush analyst Dan Ives expects a powerful rally in technology stocks in the second half of 2025, driven by accelerating artificial intelligence (AI) and cloud investment.
“We believe tech stocks will have a very strong second half of the year kicking off with a robust tech earnings season on the doorstep,” Ives wrote in a new note.
Calling AI a “once in a generation 4th Industrial Revolution,” Ives said the market is underestimating the scale of enterprise and government investment.
“Our bullish view is that investors are still not fully appreciating the tidal wave of growth on the horizon from the $2 trillion of spending over the next 3 years coming from enterprise and government spending around AI technology and use cases,” he wrote.
Wedbush named Nvidia (NASDAQ:NVDA), Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), Palantir (NASDAQ:PLTR) and Tesla (NASDAQ:TSLA) as its top five tech picks for the remainder of 2025.
Ives emphasised that “the poster childs for the AI Revolution are led by Nvidia and Microsoft,” adding that “there is one company in the world that is the foundation for the AI Revolution and that is Nvidia.”
Software (ETR:SOWGn) stocks, too, are expected to benefit as “the use cases are exploding” and enterprise adoption enters a consumption phase.
“2025 so far has been an inflection year within enterprise generative AI as true adoption has begun by going from idea to scale,” Ives said.
He also noted improving geopolitical sentiment, writing, “We believe the Trump Administration will continue to soften its stance around tariffs,” and praised Nvidia’s resumed H20 chip sales into China as “a key strategic positive for the tech space.”