Tech Rally Gains Momentum: 4 Large-Cap Picks for 2025 as Rate Cut Odds Surge

After weeks of tech sector turbulence in October and November, Wall Street is catching its breath—and investors are betting on a December rate cut to fuel the next leg up.

The Setup: Why Sentiment Has Shifted

The past month painted a grim picture for big tech. Valuations looked stretched, AI hype felt overdone, and the sector bled. But something changed last week. The CME FedWatch Tool now prices in an 84.9% probability of a 25-basis-point rate cut in December—a dramatic swing from 46% just days earlier.

What moved the needle? Inflation data finally cooperated. The producer price index came in cooler than expected, with core PPI rising just 0.1% month-over-month versus the 0.2% forecast. Meanwhile, retail sales ticked up 0.2%, signaling consumer resilience ahead of the holiday shopping season.

On the earnings front, major AI players have delivered robust quarterly results and struck major deals, restoring confidence that the sector has real fundamentals beneath the hype.

Four Tech Titans Positioned for Upside

Amazon (AMZN): The e-commerce and cloud computing juggernaut is printing a 29.7% expected earnings growth rate. AWS remains the dominant infrastructure player, while Prime and Whole Foods anchor the retail fortress. Consensus estimates have been raised 4.8% in the last 60 days.

NVIDIA (NVDA): The GPU kingpin continues to power the AI boom with a stunning 54.5% earnings growth forecast. Despite recent volatility, the demand tailwind for AI chips remains structural and intact.

Palantir (PLTR): The intelligence-software leader is growing faster than most realize, with an expected 78.1% earnings growth rate and consensus estimates up 10.6% in two months. The company’s software is deployed across 80 industries globally.

Micron (MU): Perhaps the most explosive opportunity, with over 100% projected earnings growth this year. Memory and storage demand from AI data centers and mobile devices shows no signs of cooling. Consensus estimates up 5.9% recently.

All four carry strong analyst momentum, with recent estimate revisions suggesting upside still intact.

The Bottom Line

Rate cut hopes are real, economic data is cooperating, and tech earnings are delivering. The combination could spark renewed appetite for growth stocks in early 2025. The question isn’t whether these companies have solid business fundamentals—they do. The question is whether the market re-rates them higher now that macro tailwinds are finally aligning.