Wedbush Securities Predicts 15% Nasdaq Gain Driven By AI

Dan Ives, the global head of technology research at Wedbush Securities, has expressed his bullish outlook on the US tech sector, asserting that investors are significantly underestimating its growth potential over the next five years. In a recent interview, Ives highlighted that the tech sector is poised for substantial gains, driven by the rapid advancement and widespread adoption of artificial intelligence (AI).

Ives believes that focusing solely on valuation metrics would lead investors to miss out on transformational tech stocks. He argues that the market is currently underestimating the growth prospects of the AI revolution in technology. According to Ives, the next few years will see significant developments in autonomous robotics, which could propel the Nasdaq to new heights, potentially reaching 20,000 to 25,000 points.

The analyst views geopolitical events as opportunities to acquire tech stocks at more favorable prices. This perspective is based on his extensive experience covering the tech sector over the past 25 years. Ives' optimism is rooted in the belief that the tech sector's growth trajectory will continue to outperform expectations, despite current valuations that some may consider high.

Ives' comments come at a time when the Nasdaq is trading at 21,719 points, reflecting the sector's strong performance. His insights suggest that investors should look beyond short-term volatility and focus on the long-term growth potential of the tech sector, particularly in areas such as AI and autonomous robotics.