Wedbush analysts predict a significant rise in tech stocks as the Federal Reserve is expected to begin its rate-cutting cycle this week after years of restrictive policies. Investors are hopeful that this could trigger a renewed “risk on” sentiment in the tech sector, which has faced volatility since late July.
Despite recent market fluctuations, Wedbush highlights strong tech earnings, pointing to Oracle’s results as evidence that the AI revolution is advancing into its next phase. The firm estimates around $1 trillion in AI-related investments over the coming years, fueling unprecedented growth in the tech industry.
Nvidia, led by CEO Jensen Huang, is seen as central to this AI revolution, with Wedbush dubbing it the “4th Industrial Revolution,” impacting sectors from semiconductors to smartphones. Analysts estimate that every $1 spent on Nvidia’s AI chips creates an $8-$10 impact across the tech sector, reinforcing their bullish outlook.
Wedbush also emphasizes the growing AI involvement of major tech players like Microsoft, Oracle, Palantir, and Apple. While some investors are concerned about the delayed financial impact of AI investments, Wedbush compares this period to the early stages of the 1995 internet boom rather than a tech bubble.
Wedbush believes that as AI monetization picks up, it will drive the next phase of tech market growth, making it a pivotal moment for tech investors.