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Tech's Santa Claus rally: Analyst sees AI party carrying into 2025

A Santa Claus rally is coming for technology stocks, according to Wedbush analyst Dan Ives. The senior equity research analyst sees several factors driving the market darlings higher into the end of the year, ranging from expectations about loosened regulation from the incoming Trump administration to increased adoption of artificial intelligence (AI) by the US government. The analyst also sees the tech sector gaining by 20% through 2025. "It's about the multiplier — for every dollar spent on Nvidia chip, there's an $8 to $10 multiplier across tech, across software, infrastructure, cybersecurity. That's why this is going to be a tech bull market that rages into next year," Ives explains to Morning Brief hosts Seana Smith and Brad Smith. "Because now it's about the second [or] fourth-derivative. Because now software they're they're on the dance floor at the AI party, they're no longer waiting behind the velvet rope. And now other tech players are trying to get in cybersecurity infrastructure." Ives also comments on Palantir's (PLTR) position in the so-called AI revolution, speculating that the company has the potential to the next Oracle (ORCL). To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by John Hyland.