Tech stocks have been among the worst performers in the current market downturn and investors are hoping that the new year will bring a reversal in sentiment. Against this backdrop, Wedbush analyst Daniel Ives outlined his Christmas wish list for the sector.1. Abounding M&A News Flow: Ives said the tech sector is ripe for a massive consolidation phase, both on the enterprise and consumer side. See Also: Best Technology Stocks Right Now2. Microsoft Pocketing Activision: Microsoft Corp.'s MSF proposed acquisition of Activision Blizzard Inc. Ives wants the deal to go through, as he sees Activision becoming a key asset in Microsoft's consumer gaming war chest. The fructification of the deal could be a precedence for larger deals in the big tech space, he added.4. Apple Shifting Base Out Of China: Following the iPhone production disruptions, Ives hopes for Apple Inc. AAPL to diversify the production of the gadget out of China. Reversal In Tech Stocks: Wedbush hopes for a 20% rally in the overall tech sector in 2023, with big tech, software and semiconductor stocks leading the charge.7. Strong Cybersecurity Spending: Cybersecurity spending will likely be a pillar of strength despite the softer macro situation in 2023, Ives said. He reiterated that Palo Alto Networks Inc. PANW, CyberArk Software Ltd. Increased Activism: 2023 will bring more activism into the tech sector, with Salesforce.com Inc. CRM likely a major target, Ives said.9. More Flab Cuts: Ives calls for another 8-10% workforce reduction at big techs to manage the downturn forecast for 2023 and adjust to lower growth profiles.Price Action: Technology Select Sector SPDR Fund XLK ended Friday's session down 1.32% at $127.48, according to Benzinga Pro data. The exchange-traded fund has shed about 26% year-to-date.Read Next: Amazon's Rumored Layoffs To Hit Its Once 'Must-Invest' Growth Segments; Analyst Says More Cuts Possible 'If We Go Into A...'