Wedbush thinks tech stocks will rally into year end, led by Amazon, Alphabet, Meta
Mutlu Kurtbas
Following Nvidia's (NVDA) second-quarter results and Federal Reserve Chairman Jerome Powell's speech at Jackson Hole last week, Wedbush Securities analyst Dan Ives said tech stocks are likely to rally into the end of the year, due to a new tech bull market, led by artificial intelligence.
In a note to clients, Ives said tech stocks have moved higher, despite the fact that the yield on the 10-year U.S. Treasury remains above 4% and Powell forecast further rate hikes if necessary.
"It all comes down to growth in the tech space and what do true Street numbers ultimately look like into 2024, this remains the key focus in our opinion for investors," Ives wrote in the note. "We believe the Nvidia guidance (despite the modest sell off post print) speaks to a tidal wave of AI driven spending on the horizon for the tech sector over the coming years."
Following back-to-back reports from Nvidia (NVDA) that stunned Wall Street, Ives said it's clear that the AI demand story is "real" and its impact on big tech companies, such as Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META) is notable. 
The analyst also pointed out that the impact of AI on the consumer internet is likely to be "massive," with the start occurring in cloud services, notably Amazon's (AMZN) AWS and Alphabet's Google Cloud Platform.
Both of these cloud service giants are buying AI-capable chips, building AI-centric services and selling those services to their respective customers, including Amazon's retail business and Google's search business, both of which are incorporating AI into their existing consumer offerings. 
"On this theme, we continue to like Amazon, Alphabet, and Meta as our favorites," Ives added.

More on Amazon, Alphabet, etc.

Amazon: An Underappreciated Margin Improvement Story
Google: Undervalued And Positioned To Gain From Economic Strength
Google: Strong Company At A Reasonable Price
Google: AI Will Lead The Way
Meta Platforms: Getting Ready To Rally Toward Its All-Time Highs
Amazon: Risk-Reward Is Attractive Here
Amazon: Growth Decade Ahead
Meta, Google, others said to meet with Sen. Schumer on AI next month
Google's AI 'counteroffensive taking shape,' Baird says
Meta launches AI model for coding