Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOG), and Amazon (NASDAQ:AMZN) could be in for a boost, according to a recent assessment by investment firm Wedbush Securities. Analyst Dan Ives revealed that recent checks indicated an encouraging rise in cloud spending. Ives suggested this bodes well for these tech giants, reinforcing the firm’s thesis that tech sector figures will likely see an upward trend into 2024. Other cloud stocks that could benefit include:
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- Oracle (NYSE:ORCL)
- Salesforce (NYSE:CRM)
- Palantir (NYSE:PLTR)
- IBM (NYSE:IBM)
- Adobe (NASDAQ:ADBE)
- Snowflake (NYSE:SNOW)
- C3.ai (NYSE:AI)
Ives believes Microsoft has a distinct edge, poised to garner a greater market share in the cloud sphere and potentially swell its total addressable market by 35% to 40% in the upcoming years. The progression of AI is seen as a massive opportunity for monetization. Ives anticipates tech stocks will jump another 12% to 15% in the latter half of this year, primarily driven by software and semiconductor stocks, as AI reshapes the tech world. He foresees AI-related spending accounting for 8% to 10% of IT budgets in 2024, a notable jump from 1% this year.
Overall, Wall Street is very positive on AMZN, MSFT, and GOOG stocks, as they’re all rated as Strong Buys by analysts. Nevertheless, their average price targets suggest that all three are currently trading near fair value.
