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Tech Stocks Expected to Surge by 25% in 2024, Nasdaq Aims for 20,000 Points

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TL;DR

  • Tech stocks are projected to surge 25% in 2024, and Nasdaq targets 20,000 points – Analyst Dan Ives.
  • Strong performance in the tech sector driven by AI and cloud technology.
  • Gene Munster sees a 1990s-like tech stock surge thanks to AI’s transformative potential.

Wedbush analyst Dan Ives has made a bold prediction for the tech sector in 2024, foreseeing a significant surge in tech stocks and the possibility of the Nasdaq index reaching the 20,000 mark. This projection has caught the attention of investors and market enthusiasts alike, as tech stocks have been on a remarkable upward trajectory in recent times.

Ives’ optimistic forecast

Dan Ives expressed his optimism for the tech sector’s performance in 2024 through a New Year’s Day tweet. He stated, “We believe tech stocks will be up 25% in 2024 with a NASDAQ 20k level in our bull case scenario as the Street is still significantly underestimating how quickly this AI monetization cycle is playing out among enterprises in the field. Dec quarter end checks strong for the cloud.”

This bullish outlook is founded on the belief that the market is not fully appreciating the pace at which artificial intelligence (AI) monetization occurs among enterprises. The ongoing surge in cloud technology adoption further supports this view.

Tech stocks on a roll

The tech sector has been a standout performer recently, with the NASDAQ 100 index reaching an all-time high of 16,800 points in December 2023. This marked a year-to-date performance of an impressive 54%, the strongest performance seen since the dot-com boom 1999. A striking 92% of the stocks within the NASDAQ 100 index had risen above their respective 50-day moving averages, underscoring the widespread gains in the tech sector.

Leading tech giants such as Apple Inc. (AAPL), Microsoft Corp. (MSFT), and Alphabet Inc. (GOOG) are expected to maintain their momentum in 2024. Technologies such as cloud computing and AI are poised to drive what some analysts call “a 1995 moment” for the tech industry, signifying rapid growth and innovation.

Apple’s stock, for instance, witnessed a remarkable 48% increase, while Google’s parent company, Alphabet Inc., saw a 58% increase in the value of its Class C shares over a similar period. Microsoft shares rallied nearly 57% during the same timeframe.

The surge in the shares of semiconductor and AI-related companies has been even more pronounced. Nvidia Corp. (NVDA) shares surged by an astounding 240% over the past 12 months, and Palantir Technologies Inc. (PLTR) delivered a remarkable return of 167%.

Challenges ahead for Nasdaq

As of the last trading day in 2023, the Nasdaq closed at 15,011.35 points. To reach the 20,000 mark, as per Dan Ives’ prediction, the tech-heavy index would need to climb an additional 33%. Achieving this ambitious goal will not be without its challenges, as market dynamics, economic conditions, and global events can all impact the trajectory of tech stocks.

Echoing optimism

Gene Munster, managing partner at Deepwater Asset Management, shares a similar optimistic view, predicting a surge in tech stocks reminiscent of the 1990s. He attributes this potential boom to the transformative power of artificial intelligence, a technology that is poised to reshape industries across the board.

The tech sector is entering 2024 with high expectations, fueled by the optimism of analysts like Dan Ives and Gene Munster. Their projections of a 25% surge in tech stocks and the possibility of the Nasdaq hitting 20,000 points demonstrate the industry’s potential for growth. However, investors should approach these predictions cautiously, considering the stock market’s inherent uncertainties and risks. As always, conducting thorough research and consulting with financial professionals before making investment decisions in this dynamic and ever-changing sector is advisable.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Glory Kaburu

Glory is an extremely knowledgeable journalist proficient with AI tools and research. She is passionate about AI and has authored several articles on the subject. She keeps herself abreast of the latest developments in Artificial Intelligence, Machine Learning, and Deep Learning and writes about them regularly.

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