Already red-hot technology stocks are in line for a rally to historic levels, Wedbush declared Tuesday, even as a host of firms warn the artificial intelligence-driven gains could be little more than wishful thinking.The tech sector will soar another 12% to 15% by year’s end, Wedbush analysts led by Dan Ives predicted in a note to clients, explaining the “AI revolution” will further boost investor sentiment as companies report quarterly earnings in coming weeks.
A 15% surge for the Nasdaq Composite would send the tech-heavy index to just shy of its all-time high of 15,971 first achieved in November 2021—culminating in a dramatic 52% rally for the index in 2023. The most valuable tech giants like Microsoft and Nvidia will continue to be the primary “torch bearers” for the rally, according to Wedbush, as multibillion-dollar projected increases in AI spending across the entire sector should lead to higher earnings expectations.Wedbush’s optimistic prognostication for tech comes amid a growing chorus of analyst concerns about the sector's soaring valuations.