New tech bull market has begun on ‘tidal wave’ of AI spending declares Wedbush

Wedbush tech analysts are optimistic about the technology sector, stating that a new tech bull market has begun. They believe that the sector is poised for increased spending on cloud and artificial intelligence (AI), which is currently underestimated by the market. The analysts anticipate a “tidal wave” of AI spending, with a projected 20%-25% increase in spending on cloud and AI over the next year.

The positive influence of AI monetization on the tech sector has become evident during the current tech earnings season. Companies like Microsoft (NASDAQ:MSFT), Datadog (NASDAQ:DDOG), and Palantir (NYSE:PLTR) reported strong results, underscoring the rapid expansion of AI use cases in both enterprise and consumer domains.

The analysts consider AI as the most transformative technology trend since the advent of the Internet in 1995. They believe that the Street is underestimating the potential $1 trillion of AI spending set to occur over the next decade, presenting significant opportunities for the chip and software sectors. Nvidia (NASDAQ:NVDA) and Microsoft are highlighted as leaders in this AI-driven future.

The analysts’ preferred tech stocks include Apple (NASDAQ:AAPL), Microsoft, Google (NASDAQ:GOOGL), Palo Alto (NASDAQ:PANW), Palantir, Zscaler (NASDAQ:ZS), Crowdstrike, and MongoDB (NASDAQ:MDB).