Tech Rally Has Begun, Wedbush Says, Predicting “Epic” Short Coverage By Investing.com

2023-11-21 12:00:01

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Investing.com – The technology sector has already started its year-end rally, according to a note from Wedbush to investors last Friday.

The company’s analysts recommended that investors “prepare for easing fears about the Fed” and bet on the growth of cloud and artificial intelligence (AI) in 2024.

They stated that the market is underestimating the potential of these technologies, which are expected to drive spending by 20% to 25% next year, with an explosion of use cases in the corporate and consumer environment.

Wedbush also designed “epic shorts coverage [posições vendidas]” for the technology sector by the end of the year, based on a “solid fundamental picture” for growth stocks. “The new tech bull market has begun, and tech stocks are poised for a strong 2024 as the wave of AI spending hits the broader sector,” the analysts added.

Furthermore, analysts highlighted AI as “the most transformative technology trend since the inception of the Internet in 1995” and estimated that the market is ignoring the $1 trillion in AI spending predicted over the next decade. They described this as an opportunity for the chip and software sectors, with Nvidia (NASDAQ:) and MSFT leading the way.

The firm’s preferred technology stocks are Apple (NASDAQ:), Microsoft (NASDAQ:), Alphabet (NASDAQ:), Palo Alto Networks (NASDAQ:), Palantir (NYSE:), Zscaler (), CrowdStrike Holdings Inc. (NASDAQ: 🙂 and MongoDB (NASDAQ:).