The 1990s were an animal all their own, especially in investing. The internet bubble was just getting started and carried on into the early 2000s, when the whole thing was brought largely to a crashing halt by the September 11th effect. But now, it may be a whole new 1995 for tech stocks, say analysts at Wedbush Securities.
The remark is having a mixed impact on tech stocks in Friday afternoon’s trading, however. Salesforce (NYSE:CRM), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) were all down fractionally. However, Intel (NASDAQ:INTC) was up fractionally, and Nvidia (NASDAQ:NVDA) was up nearly 2%.
The thesis expressed by Wedbush, via a team led by Dan Ives, is that artificial intelligence is currently at a point where it’s basically 1995 for the tech sector all over again. Nvidia’s numbers have certainly looked like something out of the nineties indeed, and with a further trillion dollars in spending poised to hit the AI sector over the next 10 years, that’s putting up a lot of room for investment gains. Ives noted that the GPU gold rush isn’t the end of spending but rather just the beginning. A wide range of use cases are coming open, and that’s going to prompt a further surge.
Don’t Forget 2001
If we are indeed in a new 1995, then that means a new 2001 can’t be far behind. Already, there are several sectors concerned about a bubble in the making, one that will ultimately either pop or deflate and take plenty of equity with it. For instance, Richard Bernstein Advisors’ namesake, Richard Bernstein, revealed that there were also high expectations back in 1995. In addition, recently eased interest rates were present ahead of the tech bubble.
Which Tech Stocks Are a Good Buy Right Now?
Turning to Wall Street, the leader in the tech sector is MSFT stock, a Strong Buy-rated stock that offers a 14.52% upside potential against an average price target of $469.58. Meanwhile, the laggard is CRM stock, a Moderate Buy-rated stock whose $296.68 average price target yields just a 1.29% upside potential.
