By Adam Clark
Introduction
Technology companies have been the driving force behind the U.S. stock market this year, and it seems that the tech rally is showing no signs of slowing down in 2024. As we head into the new year, Wedbush analyst Dan Ives shares his predictions for the industry. While giants like Apple continue to dominate, there are other key players to watch out for.
Spending on Cloud and AI Technology
Despite a more modest rise in overall IT spending, Ives predicts that investment in cloud and artificial intelligence (AI) technology will increase by 20%-25% in the next year. This suggests that companies are recognizing the importance of these cutting-edge technologies and are willing to invest heavily in them.
Apple’s Continued Strength
Although Apple may not be the first name that comes to mind when thinking about cloud and AI, it still remains a major contender in the tech stock market. Ives believes that Apple will maintain its position as a top tech pick, thanks to a strong iPhone 15 upgrade cycle and a promising start to the holiday season following Black Friday weekend.
Other Prominent Players in Big Tech
Alongside Apple, Wedbush analysts also highlight Microsoft and Google-parent Alphabet as key players to watch out for. These tech giants have consistently proven their worth and are expected to contribute to the ongoing tech rally.
The Rise of Cybersecurity Sector
Ives emphasizes the importance of the cybersecurity sector as a potential source of winners. He identifies Palo Alto Networks, Zscaler, and CrowdStrike as attractive stocks within this industry. These companies are leveraging their AI capabilities to stay competitive against both Microsoft and other players in the field.
Exploring Data Analytics and Cloud-based Databases
In addition to the cybersecurity sector, Ives also recommends looking out for data-analytics company Palantir Technologies and cloud-based database firm MongoDB. These companies have shown promising performance and are worth considering for tech stock investments.
Conclusion
In conclusion, Dan Ives reaffirms his bullish stance on the tech sector as we approach the end of the year. He believes that the fundamental picture for growth tech stocks remains strong and predicts a short covering for the ages in the tech sector. As we move into 2024, technology companies are poised to continue driving the U.S. stock market, with Apple leading the way. However, there are other noteworthy names, such as Microsoft and Alphabet, and sectors like cybersecurity that offer potential investment opportunities.
