Nasdaq To Surge 15% Driven By AI, In Second Half Of 2024, Predicts Wedbush Analyst Dan Ives: "Tech Bull Market Has Legs"

Wedbush analyst Dan Ives has made a bold prediction for the second half of 2024, foreseeing a significant surge in tech stocks.

What Happened: Ives took to social media platform X, to share his forecast, stating that the Nasdaq is poised for another robust six months, with a projected 15% increase in tech stocks. He attributed this growth to the expanding use cases of AI, which will drive tech fundamentals.

“We believe NASDAQ has another strong 2H ahead as tech stocks will be up 15% the rest of 2024 in our view with tech fundamentals set to accelerate as AI use cases expand. AI Party it's 9 pm and this will go until 4 am in our view. We believe tech bull market has legs,” Ives wrote.

Why It Matters: Ives’ prediction aligns with other industry experts who have also highlighted the potential of AI to drive market growth. Earlier in June, Tom Lee, the managing partner at Fundstrat Global Advisors, forecasted that the S&P 500 could reach 15,000 by 2030, largely due to the AI wave.

However, this optimism comes amid contrasting views. In May, Goldman Sachs predicted a flat return for the S&P 500 for the remainder of 2024, suggesting that the market rally had peaked.

Another analyst, Gene Munster, predicted that the stock market would continue to rise for another three to five years before an AI bubble bursts. This aligns with Lee's forecast of a sustained period of growth driven by AI-focused companies.

However, not all experts share this optimistic outlook. Economist Harry Dent warned of a looming "crash of a lifetime" due to the current "everything" bubble, which he believes has yet to burst.