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### Top 9 Tech Stocks Endorsed by Wedbush Securities Amid Nasdaq’s Surge to $20,000 in the Age of Artificial Intelligence

The Nasdaq could hit a new all-time high in 2024 as the tech rally continues and companies spend mo…

When ChatGPT was publicly launched by OpenAI in November 2022, it potentially signaled the beginning of artificial intelligence culture. However, it wasn’t until March 2023 that investors truly understood the magnitude of a generational technological shift. This realization struck them when Nvidia revealed the surging demand for semiconductor chips that power AI programs, leading to strategic investments.

The story, available exclusively to Business Insider subscribers, showcases the rise of the ‘Beautiful Seven,’ a group of leading technology stocks driving AI progress. Notably, Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla played a significant role in the growth of the S&P 500, collectively surpassing the investment portfolios of entire countries like Canada, Japan, or the UK.

While these seven stocks dominated the headlines in the past year, the communication services and information technology sectors saw a surge of over 50% in 2023. Esteemed capital research analyst Dan Ives from Wedbush Securities predicts further profitability in the coming years.

In a client update on January 1, Ives expressed confidence in the upcoming year, forecasting a 25% rise in technology companies in 2024. At the core of his optimistic outlook lies the pivotal role of AI in propelling this growth trend.

As the wave of AI adoption sweeps through the broader technology landscape, Ives suggests that a new era of technological prosperity has begun. With AI driving innovation, he anticipates a thriving market in 2024, led by major tech players and groundbreaking advancements.

The increase in AI investments across businesses indicates a significant boost for the software industry. Leaders in various sectors are increasingly using AI to improve operational efficiency and implement cost-effective strategies. This widespread adoption of generative AI is visible in various applications like data analysis, marketing content generation, and document editing.

Microsoft and Alphabet emerge as key beneficiaries of this AI boom, with Microsoft taking the lead with its cloud computing platform Azure and AI assistant Co-Pilot. However, the impacts of increased AI adoption extend beyond these tech giants to companies like Nvidia, Google, Datadog, and Palantir, all witnessing a rise in AI applications in both corporate and consumer realms.

As AI continues to infiltrate the industry, Ives envisions an overall uptrend for the technology sector, with the Nasdaq potentially hitting new highs by the end of the year. Despite potential fluctuations influenced by macroeconomic factors, Ives maintains an optimistic outlook, emphasizing the underestimated speed of AI integration in business processes.

For investors aiming to benefit from these trends, tech-focused ETFs like SPDR NYSE Technology ETF (XNTK), Invesco S&P 500 Equal Weight Tech ETF (RSPT), and Vanguard Information Technology ETF (VGT) provide straightforward options. Additionally, Vincent suggests a more detailed investment approach for 2024, targeting companies such as Apple, Microsoft, Google, Palo Alto Networks, Palator, Zscaler, CyberArk, Crowdstrike, and MongoDB. Wedbush Securities has identified these entities as top performers, poised to capitalize on the flourishing AI-driven tech market rally this year.

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Last modified: January 5, 2024
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