Despite a recent tech sell-off, Broadcom’s (AVGO) strong earnings results offer a potentially upbeat forecast for the tech sector, driven by demand for artificial intelligence (AI). Wealth Enhancement Group portfolio consulting director Ayako Yoshioka joins Seana Smith and Madison Mills on Morning Brief to discuss buying into the tech sector in 2025 and why she is “absolutely” bullish on the sector.

“When you look at the long term, I think the AI spending is clearly going to continue,” Yoshioka says. “The hyperscalers aren’t going to pull back on the budgeted CapEx that they’ve already announced.”

Although current market volatility could be a “buying opportunity for those who may not have been exposed” to the tech sector, Yoshioka warns that “CapEx spend has been the biggest concern … that has eaten into that free cash flow.”

Additionally, while the “Magnificent Seven” names might intuitively feel like reliable picks to buy into, Yoshioka advises that “second- and third-tier tech companies … may have higher growth rates … [and] can benefit from AI a little bit more than the bigger hyperscalers can.”

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This post was written by Sydney Strauss