© Reuters. ‘Tech stocks rip higher into year-end’ says Wedbush analyst
Wedbush analysts said in a note Tuesday that the firm expects a tech rally to gain legs into the year-end despite Federal Reserve/10-year fears.
The analysts believe that the Street is “now starting to get a better grasp on what appears to be a stable and slightly improving IT spending environment” heading into year-end and 2024.
“Our recent incrementally positive enterprise IT checks in the field reinforce our thesis that a modestly improving IT spending environment in 3Q on the heels of this ‘1995-like AI Revolution’ creates a bullish set up for tech stocks into year-end and 2024,” they wrote.
As a result, the analysts said the firm believes “tech stocks rip higher into year-end,” with a new tech bull market here despite the near-term focus on the Fed. In addition, Wedbush thinks the Fed is “starting to finally wave the white flag,” with rate cuts on the horizon in 2024.
The firm is focusing on tech growth led by AI. However, while they don’t see Microsoft (NASDAQ:), Alphabet (NASDAQ:), and Amazon (NASDAQ:), among others, experiencing growth like Nvidia (NASDAQ:) in this quarter, they do feel the “rocket ship-like trajectory of AI-driven growth” will hit the shores of the tech industry over the next 12 to 18 months.