As the 10-Year Treasury Yield (TNX) edges towards the critical 5% mark, Wedbush analysts highlight a risk-off sentiment impacting tech stocks at the start of 2025. Despite this, Wedbush maintains a bullish outlook for the tech sector, driven by robust demand and capital expenditure in AI technologies. "While the Fed's path for cutting rates will be slower in 2025 given the recent strong job data, our bullish thesis for tech stocks in 2025 is well intact and unchanged," the analysts assert. They view current market pullbacks as strategic buying opportunities, particularly in AI-driven tech companies like Nvidia, Microsoft, and Amazon. Wedbush emphasizes that the $2 trillion AI CapEx will significantly reshape the tech landscape, suggesting that the market is underestimating the long-term financial implications. As tech earnings season approaches, Wedbush anticipates a clearer picture of the sector's resilience, despite the bond market's influence.