AI is expected to continue to be a major focus for the tech sector (XLK) come the new year, but what can investors expect? TECHnalysis Research President and Chief Analyst, Bob O'Donnell says expect a lot of different changes with AI. O'Donnell telling Yahoo Finance's Josh Lipton on Asking for a Trend that "hybrid AI" starts to change the story when we think about who are going to be the important players.

As for what investors might want to watch for with AI darling Nvidia (NVDA), O'Donnell says "the important thing to think about with Nvidia is the software story". Nvidia has been a dominant player in the AI arena and O'Donnell explains how software gives the chipmaker a nice growth opportunity.

To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here.

This post was written by Ivana Freitas.