Wedbush sees 15% upside left for Nasdaq, tech stocks

Wedbush analysts are bullish on the tech sector, predicting a further 15% upside for the Nasdaq in 2024. They believe the current momentum is just the beginning of an AI-driven tech bull market, with the “AI party” just reaching 9 pm.

Wedbush highlights Nvidia (NASDAQ:) and Microsoft (NASDAQ:) as the early leaders of this “AI Revolution,” pioneering the foundation for a wave of new applications and spending. They anticipate a “tidal wave of $1 trillion” in tech sector spending related to AI over the next 12-18 months.

“We believe NASDAQ has another strong 2H ahead as tech stocks will be up 15% the rest of 2024 in our view with tech fundamentals set to accelerate as AI use cases materially expand,” writes Wedbush.

Their initial forecast for a 25% growth in tech stocks for 2024 remains on track, fueled by strong performances by tech giants like Nvidia, Microsoft, Amazon (NASDAQ:), and Meta (NASDAQ:). They emphasize this is a new era – a “1995 moment” of technological revolution, not a repeat of the dot-com bubble of 1999.

Wedbush expects Apple (NASDAQ:), Meta, and Google (NASDAQ:) to join the party in the latter half of the year, unleashing the consumer side of the AI revolution. The upcoming iPhone 16 is seen as a potential catalyst for this shift, ushering in an era of AI-powered smartphones.

Wedbush predicts a race to a $4 trillion market cap between tech giants Nvidia, Apple, and Microsoft over the next year. The firm says Nvidia’s dominance in GPU chips, considered the “new gold” of the tech sector, positions them well for continued growth as enterprises and consumers embrace the AI revolution.

Wedbush concludes that they believe the tech sector is poised for significant growth fueled by the ongoing AI revolution.