Top Sectors With Bullish Forecast

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Top Sectors With Bullish Forecast

Top Stock Sectors With Bullish Potential In 2025

There's no doubt that 2024 was a good year for the US stock market. Looking ahead, the interest rates will keep going down, which makes it a win-win situation for the equity markets.

However, that's not to say that there will be no uncertainty and risk as we enter into 2025. However, most of the experts agree that 2025 will be mostly positive despite the uncertanities and the risks.

With that in mind, there are three sectors of the US stock market that have the most bullish potential in 2025. These are energy, healthcare, and technology. In fact, the tech sector had a great run in 2024 due to AI and it is expected to continue next year as well.

Technology

The spending in the AI field will increase across the board and is highly likely to double during 2024 - 2028. According to experts, it is expected to grow at a 29% CAGR.

The investments will make their way into AI hardware, applications, servers, storage, and semiconductors. On top of that, services like Cloud Computing will also benefit from the bull run.

Healthcare

Healthcare is also an important sector to watch with a CAGR of 7% between 2022 - 2027. The factors that can drive the profit include higher reimbursement rates and cost efficiencies.

The margin is expected to expand across the entire healthcare industry as more firms will use the HST firms. The HST firms will increase in the life sciences, health system, and insurance companies.

Also, the healthcare companies which can help others to cut costs by using the analytics and data will also see a jump in their share prices.

Energy

The tech sector is growing, which also means there is a higher demand for energy. According to EPRI, chatbots such as ChatGPT can use up to 10x more energy as compared to a normal internet search.

In 2023, around 60% of the electricity in the USA was generated by fossil fuels. Meanwhile, the share of renewable energy sources was only 21%.

So, there's no doubt that companies using oil, natural gas, other fossil fuels will stay relevant and even record an increase in their share prices.

However, the stock prices of companies dealing with renewable sources such as solar and wind will also see a surge in 2025.

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