Tech stocks have had a strong performance so far this year, giving the markets a healthy boost despite recessionary concerns. Apple (AAPL) -) -- which is up more than 44% for the year -- breached a $3 trillion market cap earlier in the month.
Nvidia (NVDA) -), up nearly 200% for the year, became one of the biggest companies in the world when it jumped beyond a $1 trillion valuation earlier in the year. Tesla (TSLA) -) also surged recently, jumping from $153.75 per share at the end of April to $268.65 July 11.
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Noting the many explosive possibilities of artificial intelligence, Wedbush analyst Dan Ives thinks that this tech sector will continue surging throughout the rest of the year, saying that he anticipates the "overall tech sector will be up another 12%-15% in the second half of the year."
This additional surge, Ives said, will be led by "software/chip sector with Big Tech remaining the 'torch bearer' for this tech rally continuing to heat up. AI Revolution is here -- seeing first signs of spending. 1995 Moment."
We believe overall the tech sector will be up another 12%-15% in the second half of this year led by software/chip sector with Big Tech remaining the "torch bearer" for this tech rally continuing to heat up. AI Revolution is here-seeing first signs of spending. 1995 Moment 🐂🏆⛅️
— Dan Ives (@DivesTech) July 11, 2023
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Ives added that, though bears sound both "smart and scary," the recent surge in AI represents a "seminal moment in the evolution of technology just beginning to play out for the next decade. AI spend is real and not just hype."
In a separate tweet, Ives equated the coming AI monetization trend to the birth of the internet in 1995. The analyst expects that second-quarter earnings for tech will exceed the Street's expectations.
