Wedbush analyst Dan Ives projects a 25% surge in tech stocks for 2024, with NASDAQ potentially hitting the 20,000 mark.
What Happened: Ives, in a New Year’s Day tweet, stated, “We believe tech stocks will be up 25% in 2024 with a NASDAQ 20k level our bull case scenario as the Street is still significantly under estimating how quickly this AI monetization cycle is playing out among enterprises in the field. Dec quarter end checks strong for cloud.”
This comes in the backdrop of analysts predicting a new bull market for tech stocks in 2024, driven by increased spending on innovations in cloud and AI technology. Ives had previously stated in November 2023 that the tech bull market has begun and is set to intensify in 2024.
Why It Matters: Tech stocks have been on a roll, with the NASDAQ 100 hitting an all-time high of 16,800 points in December 2023, marking a year-to-date performance of 54% – the strongest since the dot-com boom of 1999. A staggering 92% of the stocks in the NASDAQ 100 index rose above their respective 50-day moving averages, indicating widespread gains in the tech sector.
Leading tech companies like Apple Inc. AAPL, Microsoft Corp. MSFT, and Alphabet Inc. GOOG are expected to accelerate in 2024 as technologies such as cloud and AI provide "a 1995 moment," according to Ives.
Notably, the Nasdaq has soared over 43% over 12 months. Individual tech giants have given higher returns. Apple stock shot up 48%, while Google parent’s Class C shares were up 58% in a similar period. Microsoft shares rallied almost 57% as well in the same time frame.
The surge in shares of Semiconductor and AI stocks has even been larger. Nvidia Corp NVDA shares gained nearly 240% over the last 12 months, while Palantir Technologies Inc. PLTR returned 167%.
On the last day of trading in 2023, the Nasdaq closed at 15,011.35, if Ives’ predictions are correct, the tech-heavy index will have to trudge up another 33% to reach the 20,000 mark.
The bullish sentiment is echoed by Gene Munster, managing partner at Deepwater Asset Management, who predicts a 1990s-like surge in tech stocks, driven by the transformative potential of artificial intelligence.
Image via Shutterstock
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