Large-cap technology stocks have surged in 2023 — and FAANG shares could have even more room to grow, according to Fundstrat's co-founder Tom Lee. "Our base case for FAANG this year was that it could rise as much as 50%," Lee said Wednesday on CNBC's "Closing Bell," referring to a grouping that includes Facebook's parent company Meta, as well as Amazon , Apple , Netflix and Alphabet .
"As this year unfolded, it really looks like FAANG — and I'm being a little broader, including things like Nvidia and semis — are so relevant to how you deal with inflation, whether it's through AI or automation. So these are incredibly important companies," said Lee. Lee added that the ability of tech companies to grow their profits can only improve. "You can't really say that you're going to have diminished demand for these products.