The tech world in 2025 is set to be defined by resilience, consolidation, and the unstoppable rise of Edge AI.
JPMorgan analyst Samik Chatterjee has unveiled his top predictions for hardware and networking in 2025, and it's clear: the year will be all about resilience, edge AI, and a few surprising twists. Here's what investors need to know.
Apple, Edge AI: 2 Hot Tickets For 2025
Chatterjee is betting on Apple Inc
While hyperscalers may grapple with AI scaling debates, Edge AI will steal the spotlight. By December, expect it to solidify as the darling of the tech world, powering smarter gadgets and keeping investors excited well into 2026.
AI's ROI remains focused on cost-cutting rather than driving revenue gains. Enterprises will stick to the basics, leveraging AI for leaner operations rather than headline-grabbing revenue boosts, the analyst said.
Cloud Wars Favor Hardware
The long-running tug-of-war between on-premise and cloud infrastructure tilts toward hardware in 2025. According to Chatterjee, companies like Dell Technologies Inc and Cisco Systems Inc could shrug off fears of cloud dominance as enterprises reconsider the cloud's ROI for AI workloads.
AI Stocks: A Rollercoaster Ride
It won't be smooth sailing for AI-leveraged players like Arista Networks Inc
Investors will wait for the likes of Nvidia Corp's
Valuation Squeeze, Cyclicality To Spark M&A Frenzy
Premium valuations across the hardware sector will narrow the gap between winners and laggards, says Chatterjee. The year's theme? Find value in the underdogs or wait for M&A opportunities to unlock hidden potential.
As Telco, enterprise, and cable players gear up for a cyclical rebound, consolidation could heat up. Chatterjee predicts stronger players will snap up rivals to amplify recovery gains and slash costs.
Contract Manufacturers: The New Favorites
Historically overshadowed by OEMs, contract manufacturers are ready to shine. Lower risks, better margins, and ties to AI infrastructure projects could make them 2025's surprise winners.
Tariff Troubles Overblown
Worried about tariffs? Don't be. Chatterjee expects years of supply chain investments to shield companies from the worst, leaving doomsayers scratching their heads as stocks rise.
EV, AV: Hype Fatigue Sets In
Electric and autonomous vehicles will face another year of growing pains. With U.S. EV subsidies on shaky ground and slower progress in autonomous tech, optimism might fizzle-except for robotaxis, which could gain traction in tightly controlled spaces, says Chatterjee.
JPMorgan's vision for 2025 is clear: edge AI is the growth engine, Apple stays unstoppable, and consolidation could define the year. For investors, it's a roadmap to navigate the tech sector's next big moves.
