From Investing.com: 2024-09-16 05:47:57

The Federal Reserve is expected to kick off its interest rate-cutting cycle this week after years of hikes and restrictive policies, sparking hope for tech investors looking for a “risk on” trade revival amidst recent market volatility.

Wedbush analysts remain confident in tech earnings, highlighting Oracle’s recent results as proof of the AI revolution shifting into a software and use-case phase. They estimate around $1 trillion in AI-related capital expenditure will drive significant tech sector growth.

Nvidia and CEO Jensen Huang are key players in the AI revolution, with Wedbush forecasting a multiplier effect of $8-$10 for every $1 spent on an Nvidia GPU chip across the tech sector. Other tech giants like Microsoft, Oracle, Apple, and IBM are also riding the AI wave.

While concerns about AI-driven investment impacts persist, Wedbush compares the current tech environment to the early Internet boom of 1995, not the tech bubble of 1999. They believe the monetization of AI will drive the next leg of the tech bull market, with stable IT spending providing a bullish backdrop for tech stocks.



Read more at Investing.com: Tech stocks to move higher on rate cutting cycle, AI boost says Wedbush By Investing.com