Wedbush strategists have declared that Wall Street is underestimating the potential of the artificial intelligence boom. In their opinion, cloud and AI-driven spending can propel the tech sector into a new bull market by 2024. According to a note released Monday by strategists led by Dan Ives, tech stocks are anticipated to surge in 2024 as companies increase their resources dedicated to AI and cloud technology. The note also stated that spending in these areas will outpace budgets in the IT space. Ives wrote, “We believe the new tech bull market has now begun and tech stocks are set up for a strong 2024 with tech stocks we expect to be up 20%+ over the next year led by Big Tech as the AI spending tidal wave hits the shores of the broader tech sector.”
Wedbush likened the impact of AI on business and technology to that of the internet, and the strategists said AI is in its “1995 moment.” Companies like Nvidia, Microsoft, Datadog, and Palantir are already showing how AI use cases are increasing across the enterprise and consumer landscape, and things are only expected to escalate. According to Monday’s note, the firm’s favorite tech names include Apple, Microsoft, Palo Alto Networks, Palantir, Zscaler, CrowdStrike, and MongoDB. For consumer tech plays, Wedbush highlighted Amazon, Alphabet, and Meta Platforms as names to watch.
“[W]e view AI as the most transformative technology trend since the start of the Internet in 1995 and believe many on the Street are still underestimating the $1 trillion of AI spend set to happen over the next decade in a bonanza for the chip and software sectors looking forward with Nvidia and Redmond leading the way,” the strategists said. This is according to a news report on Business Insider.
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