Wedbush analysts projected a 25% surge in tech stocks entering 2024, viewing the AI revolution as a key catalyst for a burgeoning tech bull market.
Now, the investment firm expects another robust second half for the NASDAQ Composite, projecting a 15% jump in technology stocks for the remainder of 2024 with the sector’s fundamentals “set to accelerate as AI use cases materially expand.”
“On the enterprise AI front Nvidia/Microsoft will drive this while Apple/Meta/Google now unleash the consumer AI Revolution heading into year-end with iPhone 16 the beginning of this AI-driven smartphone era,” analysts wrote.
Jensen Huang of Nvidia (NASDAQ:NVDA) and Satya Nadella of Microsoft (NASDAQ:MSFT) have emerged as key leaders in the AI sector, with enterprise AI spending just beginning to surge, Wedbush booed. Wall Street is now closely monitoring which companies will emerge as winners in the next wave of AI-driven spend.
“Looking into 2H24 we believe a massive broader tech rally is ahead as the AI Revolution now accelerates,” Wedbush’s team continued.
“The winners of this next phase of the AI Revolution will be those tech vendors that are able to monetize their installed bases with new AI platforms enabling customers to find clear value and data-driven use cases built off generative AI models/applications.”
The investment firm believes that over the next year, the race to the $4 trillion market cap in the tech sector will be between Nvidia, Apple (NASDAQ:AAPL) and Microsoft.