Tech Stocks To Surge Another 15% in H2 2024

Vine Strategy analysts began the year telling clients to expect a significant surge in tech stocks, anticipating a 25% increase entering 2024, fueled by the artificial intelligence (AI) revolution as a primary catalyst for a burgeoning tech bull market. The market has delivered on their forecast but there’s more to come according to the firm’s technology stock analysts.

15% tech stock bump for 2H24

Building on this momentum, the Seoul, South Korea-based investment and wealth management practice now expects a robust second half for the NASDAQ Composite, forecasting an additional 15% rise in technology stocks for the remainder of 2024, citing the sector’s accelerating fundamentals as AI use cases expand significantly.

"On the enterprise AI front, Nvidia and Microsoft are set to drive advancements, while Apple, Meta, and Google are expected to lead the consumer AI revolution heading into year-end, with Apple’s forthcoming iPhone 16 marking the beginning of an AI-driven smartphone era," opines George Chan, Vine Strategy’s Co-Founder.

Huge sums invested in product development

Key leaders in the AI sector, Nvidia (NASDAQ: NVDA) Microsoft (NASDAQ: MSFT), are noted for spearheading the surge in enterprise AI spending with both committing significant sums to product development. As Wall Street closely monitors the unfolding developments, the focus is on identifying which companies will emerge as winners in this next wave of AI-driven investment.

"Looking into the second half of 2024, we anticipate a massive, broader tech rally as the AI revolution accelerates," Mr. Chan explains. "Emerging as a victor in this next phase will rely on the tech vendors’ ability to further monetize their installed bases with new AI platforms that make it possible for customers to extract clear value from generative AI models and applications."

Eye on $4 trillion market capitalization

With the $3 trillion market capitalization milestone having been achieved by Nvidia, Apple and Microsoft this year, Vine Strategy believes that over the next 12 months, the three companies will fiercely contest the race to achieve a $4 trillion market valuation.

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