Wedbush analyst Dan Ives has shared his bold predictions for technology sector stocks in 2025.
Two predictions headline the list: Apple, followed by Microsoft and Nvidia, will reach a market capitalization of $4 trillion dollar, and Tesla could join the $2 trillion by the end of 2025.
Tesla’s Path to $2 Trillion
Ives projects that Tesla, with a current market cap of just over $1.3 trillion, will hit $2 trillion by the end of 2025 — “in a bull case scenario.”
Skeptics may see that as a lot of bull, so to speak, but Ives believes that autonomous driving — including the launch of Cybercab — could propel the company to new heights.
Tesla stock surged to an all-time high this week, gaining over 60 percent since Donald Trump’s November 4 election win — a rally enabled in part by a $100 million-plus donation from Musk.
Tesla CEO Elon Musk recently announced plans to begin manufacturing its Cybercab robotaxis in 2026. But Musk has a habit of overpromising and underdelivering. He said in 2019, “Next year, for sure, we will have over a million robotaxis on the road.” Five years later, none have been built.
But Musk, the world’s richest man, will now have arguably unparalleled access to political power for a titan of industry. Trump named him as co-chair of the Department of Government Efficiency last month — and the SpaceX and Tesla founder is likely to face significantly fewer regulatory headwinds.
Musk as a Go-Between in U.S.-China Talks
Ives also “believe[s] Musk will play a key role” in U.S.-China tariff talks — with not just Tesla, but also Apple and Nvidia getting “carve-outs in this game of high stakes poker” between Washington and Beijing.
Musk’s Tesla has received unusually favorable treatment for a Western company from the Communist Party of China. Easing the friction between the two great powers is in his business interest — and he could leverage his proximity to Trump to make that happen.
Trump has made the unexpected move of inviting Chinese paramount leader Xi Jinping to his second inauguration.
The $4 Trillion Dollar Club
Ives also believes Apple will become the first company to reach a $4 trillion valuation in 2025, with Microsoft and Nvidia likely to follow. He expectets the iPhone 16 and its AI-driven features to spark a “multi-year supercycle for Apple.”
With the impending departure of Lina Khan at the helm of the Federal Trade Commission, Ives forecasts a 50 percent-plus rise in tech mergers and acquisitions. Tech stocks, he says, will rise another 25 percent driven by growth in artificial intelligence.
Ives is also bullish on Palantir, which he says is positioned to become “the next Oracle.” The company’s flagship Artificial Intelligence Platform (AIP), he argues, will transform “AI use cases within enterprises.”
Speaking to CNBC, Ives predicted “another two-to-three-year bull market for tech,” citing the ongoing “fourth industrial revolution.”
Read Ives’ full set of predictions here.
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