Wall Street’s still bullish on AI, and Wedbush just named its five must-watch tech stocks to scoop up for the rest of 2025.
Nvidia’s (NVDA) was perhaps a no-brainer, with its mission-critical role as the engine behind nearly every noteworthy AI deployment.
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But the other four? They spread their tentacles across multiple sectors and strategies, each offering something unique in what Wedbush calls the "golden age of tech."
The common thread: They're all tied to the fast-evolving real-world scaling of AI.
Nvidia becomes the bedrock of the AI era
Nvidia’s the ultimate juggernaut in the AI realm, with a chokehold on the AI accelerator space and a pace of innovation that’s second to none.
Today, Nvidia controls north of 90% of the global AI accelerator market, led by the explosive demand for its H100 and H20 GPUs.
Even with the escalating tensions between the U.S. and China, Nvidia managed to maintain export licenses, enabling it to cater to its Chinese clients.
Related: Jim Cramer drops jaw-dropping price target on Palantir stock post-earnings
Also, earlier this year, Nvidia crossed a $4 trillion market cap, a rare feat that's indicative of its critical role in every major cloud provider’s AI strategy.
Whether it’s Amazon, Microsoft (MSFT) , or Google, they’re all running Nvidia chips, for both model training and high-throughput inferencing.
But hardware is just part of the story.
Nvidia’s real moat is arguably its robust software stack. CUDA, launched over a decade ago, has become the backbone for the bulk of AI development today.
Add in cuDNN, TensorRT, and other optimized libraries, and the result is impeccable speed and developer efficiency.
Its powerful new Blackwell architecture, successor to Hopper, adds next-level performance-per-watt, setting the stage for swifter large-language-model training with specialized tensor cores.
Also, at the COMPUTEX event this year, CEO Jensen Huang doubled down.
Nvidia will be involved in building a massive $500 billion worth of AI infrastructure in the U.S. over four years, while expanding its sovereign-cloud partnerships across Europe and the Middle East.
Wedbush says AI bulls still have room to run
Tech heavyweights are just a huge vote of confidence from the veteran analyst team at Wedbush.
In a new note, popular tech analyst Daniel Ives and his team doubled down on their top five picks for the second half of 2025.
These included Nvidia, Meta Platforms (META) , Microsoft, Palantir Technologies (PLTR) , and Tesla (TSLA) . The first four in particular, though, “paint a bullish story for the AI revolution.”
Related: Cathie Wood splurges $4.1 million on popular AI stock
“The Street is still underestimating the AI-driven growth wave coming,” Wedbush said, pointing to healthier Q2 earnings that effectively “validated” the bull case across the board.
Palantir in particular killed it with a “blowout quarter,” cementing its place as the “poster child” for AI’s next phase.
Wedbush believes the AI market is still in its early stages, and the firm is tracking $2 trillion in enterprise and government AI spending over the next three years.
“We’ve barely scratched the surface of this fourth industrial revolution,” Ives wrote, adding that tech leaders like Nvidia, Microsoft, Palantir, Meta, and Alphabet are setting new benchmarks.
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Additionally, he talked about the strength in the broader software sector as the next big wave. As more companies move from AI experimentation to full-scale adoption, Wedbush sees the incredible momentum accelerating into year-end.
Big tech’s AI leaders stay hot, with one notable exception
Nvidia is arguably the undisputed king in the AI momentum trade.
The chipmaker is still climbing, up more than 31.72% year-to-date and a whopping 55.8% over the past three months alone.
Investor optimism is centered around robust data-center demand and easing tensions between the U.S. and China.
What’s most surprising is that even with export-license delays and geopolitical pressure, institutions continue to pour into the AI behemoth.
Meta Platforms isn’t far behind. A strong Q2 showing triggered an 11% post-earnings jump, with revenue growth coming in at an impressive 22%.
CEO Mark Zuckerberg’s AI-led ad upgrades and ramp-up in AI hardware hiring have helped push the stock to roughly 31% higher YTD, and 30.43% over three months. Reality Labs continues to bleed cash, but the core business looks stronger than ever.
Microsoft, now a $4 trillion club member, leans on its cloud giant Azure’s mid-30% year-over-year growth and a deepening OpenAI partnership. Also, with Windows 10 support ending in October, a PC upgrade cycle looms.
Also, a massive $80 billion AI infrastructure spend planned for 2025 could supercharge its lead. Consequently, the stock is up more than 25% YTD and 21% in three months.
Palantir is perhaps the dark horse. It recently posted powerful Q2 results, where revenue surged 48% YOY to over $1 billion, and retail enthusiasm hasn’t cooled off, either.
Shares are up a staggering 128% YTD, including 58.45% over the past three months.
EV giant Tesla, meanwhile, is the clear laggard, down 22.37% YTD, despite a short-term 20.5% bump in recent months. European EV sales have cratered, and CEO Elon Musk’s political presence continues to stir the pot.
Related: Morgan Stanley slaps eye-popping price target on Nvidia stock
