Gene Munster (Gene Munster), a well-known American technology analyst, predicted in a recent interview that 2024 will be the beginning of a multi-year bull market in the technology industry, and this round of bull market may continue for three to five years.
Munster said, “I think we're entering a three to five year tech bull market, which is driven by artificial intelligence. It's not about interest rates, but about a fundamental shift in productivity. I think we're entering the first year of the tech bubble, and this bubble will form within the next three to five years.”
Munster's views have been endorsed by some other Wall Street people, who also believe that technology stocks are starting a long-term bull market.
Munster said that this momentum will be largely driven by increased productivity brought about by artificial intelligence. Earlier, Goldman Sachs predicted that artificial intelligence could increase labor productivity by 1.5 percentage points within the next 10 years.
Some analysts warned that a speculative bubble was forming given the huge gains of some of the biggest winners in the market last year, but Munster said the formation of a tech bubble was to be expected given that artificial intelligence technology would prove to be a game-changing technology.
He added: “When dramatic changes like artificial intelligence occur, creating a bubble is the only logical outcome.”
Despite this, Munster said he believes “Big Seven” stocks will no longer dominate the market as they did in 2023. He said small tech companies will definitely perform strongly this year, and the Russell 2000 growth stocks are expected to outperform the S&P 500 index.