Tech stocks are forecasted to embark on a resurgence in the second half of the year, according to analysts at Wedbush.
Some of the sector's biggest players, including Apple, Amazon, Microsoft, Google owner Alphabet and Facebook parent Meta, are all set to report quarterly updates later this month, with the expectation these will come in strong.
Analysts at Wedbush pin an up 15% share price gain on average among tech stocks on the boom being experienced in software and chip sectors.
“Heading into the second half of 2023 we see a much broader tech rally ahead as investors further digest the ramifications of this $800 billion artificial intelligence (AI) spending wave on the horizon and what this means for the software, chip, hardware, and tech ecosystem over the next year,” Wedbush said.
“While management teams will continue to be prudent around costs and conservative for guidance, we believe the stage is now set for a tech earnings season that will put fuel in the tank of this tech rally as a more stable enterprise tech landscape and resilient consumer is front and centre,” the analysts wrote.