As 2025 begins, the Nasdaq, known for its technology-heavy composition, has been among the standout players on Wall Street in the last year.
With continued growth in sectors like artificial intelligence (AI), several Wall Street analysts have shared their outlook on technology.
The analysts highlighted the ongoing AI revolution as a key driver reshaping the sector and pushing the index to new heights.
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Analysts’ Nasdaq 2025 prediction
Wedbush analysts led by Dan Ives are forecasting a 25% surge in technology stocks in 2025, pointing out that the sector is likely to continue to be dominated by AI-driven companies.
In a late December note, Ives specified that some key players to watch include Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT). Tesla (NASDAQ: TSLA), Alphabet (NASDAQ: GOOG), Apple (NASDAQ: AAPL), and Palantir Technologies (NASDAQ: PLTR) also made the firm’s top list of AI-driven winners.
“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. <…> Over $2 trillion in incremental AI capital expenditures over the next three years,” Wedbush stated.
Elsewhere, JPMorgan (NYSE: JPM) strategist Dubravko Lakos-Bujas is also bullish on US equities in 2025, emphasizing the pivotal role of AI in driving growth. Lakos-Bujas highlighted that the ongoing AI revolution, particularly in the context of US Exceptionalism, is helping to broaden AI’s impact across industries, fueling earnings growth and market optimism.
He also pointed to the expanding business cycle, easing measures from global central banks, and the expected wind-down of the Federal Reserve’s quantitative tightening (QT) in the first quarter as additional factors supporting US equities.
On the other hand, Bank of America’s (NYSE: BAC) Savita Subramanian and Oppenheimer’s John Stoltzfus also highlighted the role of AI in sustaining economic and market resilience.
Subramanian forecasts a recovery in manufacturing alongside a 13% year-over-year growth in S&P 500 earnings per share. However, Stoltzfus highlighted AI as a watershed technological and economic progress moment.
“Artificial intelligence presents a genuine potential for greater efficiencies in key areas that are challenging progress today across sectors and society,” Stoltzfus stated. His bullish stance aligns with broader market optimism, with the S&P 500 projected to reach 7,100 by year-end.
Nasdaq’s risk factors in 2025
Besides the bullish outlook for technology stocks, the market faces risks in 2025, including policy volatility under the Donald Trump presidency, a shifting Federal Reserve stance, and market vulnerability after years of minimal corrections.
Additionally, despite suppressing inflation in 2024, the Fed’s recent actions, including a “hawkish cut” and revised inflation outlook, signal that inflation remains a concern. This uncertainty has rattled markets, with stocks facing significant declines in December, and will likely spill over into the new year.
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