Dan Ives, a well-known technology analyst at Wedbush Securities, predicts that U.S. technology stocks will rise by 25% in 2024, and the Nasdaq is expected to reach 20,000 points. "We believe tech stocks will rise 25% in 2024, with the Nasdaq hitting 20,000. This is our bull case forecast, as Wall Street remains severely underestimating how quickly the AI monetization cycle will play out among companies in this space," Ives wrote in a post on New Year's Day.
Many analysts currently predict that technology stocks will usher in a new bull market in 2024, driven by increased spending on innovation in cloud computing and artificial intelligence technologies. Ives previously said in November 2023 that the bull market in technology stocks had begun and would expand in 2024.
In 2023, U.S. technology stocks have been rising, and the Nasdaq 100 index hit a record high of 16,800 points in December. An astonishing 92% of stocks in the Nasdaq 100 rose above their respective 50-day moving averages, indicating a broad rally for tech stocks.
Ives said leading technology companies such as Apple, Microsoft and Alphabet are expected to accelerate in 2024 as technologies such as cloud computing and artificial intelligence provide a "1995 moment."
On the last trading day of 2023, the Nasdaq Composite Index closed at 15011.35 points, a cumulative increase of 43% for the whole year. If Ives' prediction is correct, the tech-heavy index would have to rise another 33% to reach the 20,000 mark.