Wedbush expects the tech surge to continue into the new year, driven by AI.

The tech rally is expected to continue beyond the year's end, according to Wedbush analysts, who said in a report on Tuesday that artificial intelligence-driven development is expected to drive that growth in 2024.

Wedbush believes the most recent decline in tech stocks is "just a brief pause," and they expect the tech surge to pick up steam after Labour Day and continue until the end of the year.

According to its analysts, the IT industry is "on the cusp of a massive wave of software and chip spend," driven by the expansion of AI use cases on a worldwide scale.

"We firmly stick with our bullish call that a 12%-15%+ in tech stocks will be in the cards heading into year-end as the new tech bull market has already kicked off in our opinion," they said in their article.

Wedbush noted that AI is "set to unleash an unprecedented wave of spending that could comprise 10% of IT budgets in 2024," and the analyst added that this is a "1995 moment happening before our eyes."

"This spending wave is starting to quickly prove it's not a hype cycle but transformational real spend," the analysts said. "We estimate it will result in an incremental $800 billion of enterprise/consumer spending over the next decade."

(Sources: investing.com, reuters.com)