Artificial Intelligence to Ignite Technological Bull Market, Predicts Dan Ives of Wedbush

**Tech Analyst Predicts A.I. Gold Rush in Second Half of the Year, Labels it an “Internet Moment”**
A tech analyst at Wedbush, Dan Ives, has expressed his belief that the current A.I. boom presents a massive opportunity for investors. In a note to clients, Ives stated that the A.I. “Gold Rush” will heat up the tech sector in the second half of the year. He compared the impact of A.I. on markets to the “Internet Moment” of 1995, emphasizing that this is just the beginning of the A.I. revolution. Ives also dismissed concerns of a market bubble, asserting that this is the start of a new tech bull market.

**Projected Growth of A.I. in IT Budgets**
Wedbush has projected that A.I. will account for up to 10% of overall IT budgets by 2024, compared to just 1% in 2023. Ives predicted that spending on software-based A.I. will become a priority for Chief Information Officers (CIOs) globally. He believes that this will lead to winners and losers in the tech industry, but overall, the sector will experience a strong second half of the year. Ives draws parallels to the dot-com bubble of the late 1990s but highlights that the current A.I. revolution is still underestimated.

**Broader Tech Rally Expected**
Due to significant investments in A.I., Ives predicts that the unexpected tech rally witnessed this year will continue to expand in the coming months. He attributes this momentum to the anticipated $800 billion A.I. spending wave and its implications for software, chips, hardware, and the overall tech ecosystem. Ives believes that the tech sector will witness a 12% to 15% growth in the second half of the year, led by software and the chip sector. Moreover, he expects Big Tech companies to remain at the forefront of this rally.

**Companies Likely to Invest in A.I.**
Ives lists several companies expected to make significant investments in A.I., including Microsoft and Nvidia. He also predicts that besides Google, other technology giants such as Oracle, Amazon, Salesforce, Palantir, MongoDB, Apple, IBM, Meta, Adobe, Snowflake, and, along with smaller players in the industry, will collectively invest billions in A.I. over the coming years. Ives highlights Microsoft as a market leader in the A.I. race and suggests that the company will expand its total addressable market in cloud computing by 35% to 40%.

**Divided Investor Opinions on A.I.**
While Ives is confident in the potential of A.I., other investors hold contrasting views. Some have cautionary concerns regarding the A.I. hype and its potential impact on the market. Hedge fund billionaire Ken Griffin warns of the spread of hype around the technology, while Cathie Wood of ARK Invest believes that Nvidia’s shares are overpriced due to A.I. excitement. James Penny, CIO of TAM Asset Management, compares the A.I. hype to the dot-com era.

**Debating A.I.’s Impact on Humanity**
Regarding A.I.’s wider impact on humanity, opinions are divided among business leaders, technologists, and A.I. experts. At the Yale CEO Summit, 42% of surveyed CEOs expressed concerns that A.I. could potentially destroy humanity within the next five to 10 years. Prominent figures such as Elon Musk and Steve Wozniak have also called for a pause in the development of powerful A.I. systems. However, opinions vary, with some experts dismissing the notion that A.I. will bring about the end of mankind.

In conclusion, the A.I. industry is experiencing a significant boom that presents a lucrative opportunity for investors. While some investors are skeptical about the A.I. hype and its potential risks, others are confident in the technology’s growth and its positive impact on the tech sector. The future of A.I. remains uncertain, and debates about its impact on humanity continue among experts. However, one thing is clear: A.I. is reshaping the tech world, and investors are taking notice.

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