Tech stocks will rally as much as 15% more as "the AI revolution is here", Wedbush analyst Dan Ives says
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- Tech stocks could rally another 12%-15% in the second half of 2023, according to Dan Ives.
- The Wedbush analyst reiterated the AI boom was having its "1995 moment" – similar to the internet boom of the 1990s.
- While some have compared the AI hype with the dot.com bubble, Ives is confident on the tech's transformative capabilities.
Artificial intelligence has taken the stock market by storm this year, powering triple-digit rallies in tech names such as Nvidia and boosting the Nasdaq 100 by almost 40%.
However, as gravity-defying market moves do, this one too has split Wall Street into two camps – those who think the rally has gone too far, too fast, and others who believe the trend still has room to run.
Dan Ives of Wedbush Securities belongs to the latter camp.
He predicts US tech stocks to rally another 12%-15% from current levels as AI enjoys its "1995 moment" – parallel to the investment boom that followed the advent of the internet. That forecast is even more bullish than the 10%-12% gain he projected last month.
"We believe overall the tech sector will be up another 12%-15% in the second half of this year led by software/chip sector with Big Tech remaining the "torch bearer" for this tech rally continuing to heat up. AI Revolution is here-seeing first signs of spending. 1995 Moment," he tweeted on Tuesday.
The Wedbush analyst has repeatedly described the rise of AI as the "fourth industrial revolution," suggesting the technology has the capacity to transform modern society.
"I think this is really transformational changes to technology that I think would change the tech space for the next 20-30 years," Ives said in a CNBC interview in late June.
Per CNBC, Ives projected the AI industry will see a trillion dollars of incremental spend over the next decade. "That could be conservative — that wasn't here six months ago," he said.
Read more: AI is the 'fourth industrial revolution' - and will see $1 trillion in investment, Wedbush analyst Dan Ives says