(CercleFinance.com) – Technology stocks should continue to grow in 2024 thanks to the development of artificial intelligence and the strength of the ‘cloud’, predicts Wedbush Securities.
The American broker says he expects a 25% increase in technology stocks next year on Wall Street, believing that investors underestimate the good health of the sector.
‘While it is true that budgets dedicated to IT are only expected to increase moderately in 2024, we believe that investments in the ‘cloud’ and AI will increase by 20% to 25% next year,’ explains Dan Ives, the broker’s star analyst.
In a note, the latter sticks to his theory according to which AI constitutes the most significant technological upheaval since the emergence of the Internet in 1995.
He adds that Wall Street tends not to fully appreciate the full implications of the $1 trillion investment wave that will sweep through the industry over the next decade, as well as its consequences for chipmakers like Nvidia. or software designers such as Microsoft.
‘We believe that it is now the entire sector which will join the ‘Magnificent Seven’ in a stock market rally which will be supported by AI’, concludes the professional.
His favorite stocks, with this in mind, are Apple, Microsoft, Alphabet (Google), Palo Alto, Palantir, Zscaler, CyberArk, Crowdstrike and MongoDB.
The hi-tech sector was by far the big star on Wall Street this year. With a gain of almost 57%, it significantly outperformed the ten other major sectors of the S&P 500 and allowed the Nasdaq Composite index to soar by 44%.
Given the weight of the technology sector, which represents more than 27% of the market capitalization of the S&P 500, its growth is considered essential to the progress of Wall Street.
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