Throughout the year, Wall Street has been focusing on stocks related to artificial intelligence (AI), but according to Dan Ives, an analyst at the US investment bank Wedbush, the market still largely underestimates the transformative potential and huge spending frenzy that this technology will bring.
In a report on Monday, strategists led by Ives predicted that as the company increases its investment in artificial intelligence and cloud technology, technology stocks are expected to continue to soar in 2024. In Wedbush's view, expenditures in these two areas will exceed the budget of the IT sector.
Ives wrote, "We believe that a new technology bull market has begun and technology stocks will experience strong growth in 2024. With a wave of artificial intelligence spending impacting the broader technology industry, we expect technology stocks to rise by more than 20% next year, led by large technology companies."
Wedbush insists on comparing the impact of artificial intelligence on business and technology to the internet, and analysts say that artificial intelligence is in the "1995 moment" (internet boom).
The bank stated that companies such as Nvidia, Microsoft, Datadog, and Palantir have demonstrated how the use of artificial intelligence in the enterprise and consumer sectors is increasing, and the number of applications in the future will only increase.
According to Monday's report, Wedbush's favorite technology companies include Apple, Microsoft, Palo Alto Networks, Palantir, cloud computing security company Zscaler, computer security technology company CrowdStrike, and developer data platform MongoDB.
At the same time, in the field of consumer technology, Wade Bush emphasized that Amazon, Google's parent company Alphabet, and Meta platforms are worth paying attention to.
"We believe that artificial intelligence is the most revolutionary technological trend since the birth of the Internet in 1995, and we believe that many people on Wall Street still underestimate the $1 trillion in AI spending that will emerge in the next decade, which will be a treasure trove for the chip and software industries, with Nvidia and Microsoft leading this trend," strategists said.