As per Wedbush, 2024 is poised to solidify AI’s position as a prominent investment style, potentially leading to a 3% surge in technology companies.
Former Wall Street tech analyst Dan Ives suggests that the Nasdaq Composite index could experience a 33% uptick from its current level just above 15,000 points, even in a bearish scenario.
In a research note disclosed by Business Insider, Ives expressed, “As we approach 2024, both the financial industry and the digital realm anticipate the emergence of ‘the Year of AI,’ propelling tech firms to new heights.”
Envisioning a Nasdaq threshold of 20,000 in our optimistic scenario, we anticipate a 25% increase in tech stocks in 2024, underscoring the Street’s underestimation of the rapid evolution of the AI monetization cycle.
With the introduction of AI-driven bots by both companies in 2023 and significant investments from tech behemoths like Apple, Amazon, Nvidia, and Meta Platforms, the rivalry between Microsoft and Google parent Alphabet is likely to intensify over the next year, according to Ives.
This optimistic outlook follows a year where the Nasdaq Composite surged by 43%, defying Wall Street’s gloomy forecasts.
The heightened interest in ChatGPT, which propelled the “Beautiful Seven” group to remarkable returns and facilitated chipmaker Nvidia’s ascent to a trillion-dollar valuation, fueled the surge in tech stocks.
Ives is not alone in forecasting a pivotal role for AI in 2024. Kathleen Brooks, the founder of Minerva Analysis, anticipates that “AI will remain a dominant theme in 2024—we are merely scratching the surface at present.”
Brooks further noted, “Nvidia and Microsoft are already at the forefront in this space, with these software firms boasting substantial cash reserves to support their endeavors.”
