Tech Bull Market

Wedbush’s Global Head of Tech Research, Dan Ives, on Friday stated that tech stocks will rally into the year-end even as AI valuation concerns grip markets.

Tech Bull Market

Ives stated that the current tech bull market could persist for another two years, identifying the AI Revolution and related capital expenditure as pivotal factors driving this growth.

“We believe tech stocks rip higher into year-end as this tech bull market has 2 more years of runway on the AI Revolution theme/Capex spending in our view,” Ives said in a post on X.

Table Pounders: Meta, Microsoft

As the AI Revolution progresses, companies are expected to ramp up their spending on technology and infrastructure. This trend is expected to propel further growth in the tech sector, benefiting investors and stakeholders.

In an interview with CNBC, Ives called Meta Platforms Inc. (NASDAQ:META) and Microsoft Corp. (NASDAQ:MSFT) the “table pounders.” As for Meta’s rising capex plans, Ives said the company will make “multiples” of the money that it will spend.

Ives added that the enterprise segment will be Microsoft’s, while Apple Inc. (NASDAQ:AAPL) will take the consumer segment, adding between $75 and $100 to the iPhone maker’s stock.

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Dismissing AI Bubble Concerns

Ives recently dismissed fears of an AI-driven tech bubble, stating that the market is in the early stages of a “Fourth Industrial Revolution” with years left to run. He predicts a significant surge in the market, with NASDAQ potentially reaching 30,000 points, driven by a “profit wildfire” from AI leaders.

Contrastingly, Michael Burry, known for his “Big Short” against the 2008 housing market, warns that the AI boom might mirror the 2000 dot-com bust. His firm, Scion Asset Management, has placed over $1 billion in bearish bets against AI-centric stocks like Palantir Technologies Inc. (NASDAQ:PLTR) and Nvidia Corp. (NASDAQ:NVDA).

Despite Burry’s caution, Ives remains optimistic, even criticizing Burry’s stance as fundamentally flawed, particularly regarding Palantir’s trajectory.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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