EXCLUSIVE: Energy, Semiconductors Could Dominate Portfolios In 2025, Says Direxion CEO

As investors look to navigate the volatility of global markets in 2025, Direxion's CEO, Douglas Yones, sees the technology and energy sectors as key growth areas.

In an exclusive interview with Benzinga, he asserted that while broader market uncertainty persists, the semiconductor and energy industries are poised to stand out.

Semiconductors: A Key Growth Sector

Yones points to the semiconductor industry, driven largely by the increasing demand for AI technology. "Technology, particularly the AI and semiconductor industries, stands out as a key area for growth," he shares.

As AI applications expand, the need for more advanced chips is set to rise, making this a high-potential sector. For traders looking to capitalize on this, Yones recommends leveraged ETFs such as the Direxion Daily Semiconductor Bull 3X Shares SOXL, which offer significant exposure to the semiconductor industry.

Energy Sector Boosted By Policy Shifts

The energy sector is also expected to thrive in 2025, with favorable policies likely to drive growth in fossil fuel companies. "The Trump administration has made its stance on drilling very clear, and the administration may be more friendly to fossil fuel companies," says Yones.

He believes this will likely hurt alternative energy stocks, but make energy ETFs like the Direxion Daily Energy Bull 2X Shares ERX an appealing choice for traders.

Looking Ahead: 2025's Growth Potential

With AI driving technological advances and President-elect Donald Trump‘s administration continuing its pro-fossil fuel stance, both semiconductors and energy stocks are expected to dominate investor portfolios in the year ahead.

"We expect energy and semiconductor stocks to benefit from both technology trends and government policies," Yones said.

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