Posted 2/23/2024, 3:12:00 PM
Tech sector seeing surge in AI spending, not a bubble like 1999
- Wedbush Securities believes the tech sector is experiencing a 1995-like moment as AI goes mainstream, not a bubble
- Nvidia's earnings and AI chips are the start of a massive spending wave on AI across sectors
- AI adoption could unlock $1T+ in tech spending over 10 years, benefiting software cos like MSFT, CRM, etc.
- Unlike the 1999 dot-com bubble, today's valuations are justified by monetization, infrastructure, and macro environment
- Nvidia, Microsoft and other AI stocks may seem expensive, but worrying about valuations could mean missing the AI transformation