Embrace the AI Faith! Wedbush's Optimistic Projection: Tech Stocks Poised for a New Bull Market in US Stock Market

With the conclusion of the earnings season, several tech giants, including $Apple(AAPL.US)$ and $Microsoft(MSFT.US)$ , experienced noticeable pullbacks. Wedbush Securities asserts that while the broader market continues to be volatile, any retracements in tech stocks might be "transient," and artificial intelligence (AI) stocks could potentially lead the market's surge.
Wedbush analyst Dan Ives reaffirmed his earlier forecast from earlier this year, predicting a further rise of 12% to 15% in tech stocks by year-end. He believes that with the drive of corporate cloud expenditures and large-scale projects from companies like Microsoft, $Amazon(AMZN.US)$ and $Alphabet-A(GOOGL.US)$ , the tech sector will usher in a new bull market.
Following Amazon's second-quarter performance announcement, its stock price saw a substantial rise, attributed to robust guidance and the stability of Amazon Web Services (AWS). Ives referred to this quarter as a "show of strength."
Fueling all of this is the AI frenzy. Artificial intelligence has become a hot topic in this year's capital market, with some likening its significance to the early days of the internet's development.
From the hundreds of conference calls we've participated in over the past month, it's evident that the AI theme is reshaping the landscape for both businesses and consumers' future, creating a distinctly different spending environment for winners and losers in this backdrop," he added. He further mentioned that areas like personal computers and infrastructure have shown weakness, whereas domains such as cloud computing, network security, digital advertising, and enterprise have demonstrated robust performance.
Ives stated: "We are currently in the phase of studying and building AI use cases, ultimately preparing for a substantial spending cycle." Ives also suggested that companies like $NVIDIA(NVDA.US)$ , $Microsoft(MSFT.US)$, $Apple(AAPL.US)$, $Alphabet-A(GOOGL.US)$, $Oracle(ORCL.US)$, $Palantir(PLTR.US)$, $MongoDB(MDB.US)$, $Snowflake(SNOW.US)$, $Salesforce(CRM.US)$, $Advanced Micro Devices(AMD.US)$, $C3.ai(AI.US)$ , among others, are likely to benefit from this trend.
With the potential conclusion of the Federal Reserve's rate-hike cycle and continued robust AI spending, Ives believes that "the venture capital environment is signaling a green light before year-end," propelling a bullish market for the next 12 to 18 months.