Written by 4:00 pm AI Prediction, Future of AI, Stocks and Business

### 2024: The Year of AI as Tech Stocks Surge by 25%, Predicts Leading Analyst Dan Ives

A Wedbush AI survey shows Wall Street is “significantly underestimating how quickly this AI monetiz…

Dan Ives, a prominent technology analyst at Wedbush, is bullish on the ongoing AI gold rush, suggesting that investors can expect further advantages in the coming year as AI technology continues to drive corporate earnings growth. This optimism follows a successful year for AI-related tech stocks in 2023.

In a recent note, Ives projected a 25% increase in tech stocks for 2024, with a potential best-case scenario of 35%, propelling the Nasdaq Composite to a record high of 20,000. The key driver behind Ives’ positive outlook is the rapid expansion of Internet of Things (IoT) use cases globally, which he believes is being underestimated by many in the financial industry.

The discussion surrounding the impact of AI on large corporations’ profitability has been a topic of debate on Wall Street. While some express caution, citing the early stage of AI’s potential benefits in reducing costs and enhancing productivity, others like Ives remain optimistic about the transformative power of AI. Ives emphasizes the importance of “use cases” in driving the adoption and success of AI technologies across various industries.

Recent surveys conducted by Wedbush and Insight Enterprises reveal a growing awareness and adoption of generative AI tools among businesses, with a significant number of companies recognizing the value of AI in data analysis and marketing. As businesses increasingly leverage AI technologies to innovate and streamline operations, Ives anticipates a significant uptick in AI-related spending in the tech sector in the near future.

Looking ahead to 2024, Ives recommends investing in established tech giants with strong AI connections, alongside select pure-play AI companies, software experts, and cybersecurity firms. He believes that these companies are poised to benefit from the proliferation of AI use cases and will likely outperform in the tech sector throughout the year.

While acknowledging potential market fluctuations driven by economic conditions and Federal Reserve policies, Ives remains confident that the positive impact of AI monetization on the tech industry will continue to drive growth and innovation, likening it to the transformative effect of the Internet’s emergence in the mid-1990s.

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Last modified: January 15, 2024
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