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Tech stocks set to rebound on AI growth and ad-spending recovery

Published Sep 28, 2023 01:14
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Despite a challenging September for tech stocks, marked by anticipated higher rates and a 5% dip for Tech (NYSE:XLK), analysts from Wedbush, led by Dan Ives, foresee a rebound. The predicted recovery is attributed to the upcoming big tech earnings season and forecasted federal rate cuts in 2024.

The Federal Reserve's revised projections indicate two rate cuts next year and an additional rate hike this year, shifting market expectations. This comes after a difficult period for tech stocks, reminiscent of the 2007 financial crisis, with hawkish Federal Reserve decisions and escalating Treasury yields.

Giant tech companies such as Microsoft (NASDAQ:MSFT), Google (NASDAQ:NASDAQ:GOOGL), and Amazon (NASDAQ:NASDAQ:AMZN) are expected to benefit from increased enterprise spending on AI-related data center infrastructure.

Wedbush analysts highlight the transformative growth potential in artificial intelligence, cloud technologies, cybersecurity, and a resurgence in digital advertising. They anticipate these factors will play a significant role in the tech sector's recovery.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Tech stocks set to rebound on AI growth and ad-spending recovery
 

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