The stock market has risen over the last year, helping to break the 36,000 barrier.
IANS News Agency
The year-to-date gain of the Nasdaq is likely to continue into next year, according to Dan Ives.
The bull market should continue because of an easing chip shortage.
The tech-laden Nasdaq will hit 19,000 in 2022, according to Ives.
The tech-laden Nasdaq should be in good shape in the coming years, as it looks to extend its year-to-date gains of nearly 30%, according to a Thursday note from Daniel Ives.
The easing of the Semiconductor shortage in the first half of next year should help improve the fundamental demand story behind tech companies and quell investor concerns about high valuations. The tech space should sustain bullish investor sentiment due to emerging growth from the cloud, cyber security, 5G, and the metaverse.
The tech bull cycle will continue into the year 2022, given the scarcity of growth names and winners in the market, according to Ives.
The price target for the Nasdaq was set by Ives at 19,000, representing a potential upside of 19% from current levels and an increase from its previous target of 16,000. The 10-year compound annual growth rate of the Nasdaq is 23%.
The three largest companies in the world will drive the upside next year. The shift to the cloud is still in its early days, but Microsoft and Google should benefit from it.
"We believe that Microsoft is positioned to gain more market share vs. Amazon Web Services, with healthy cloud budgets already in place for 2022," he said.
According to the note, Apple will likely surpass a $3 trillion valuation on continued growth from an iPhone upgrade supercycle.
The cyber security space is a sector investors should own as the growth in cloud solutions leads companies to understand the need for cyber security protection. The golden age of cyber security will continue as more data moves to the cloud.
The cyber security industry will see strong deal flow next year, and points to Zscaler, Palo Alto Networks, and Cyber-Ark as stocks to own in the sector, among others.
Business Insider has an original article.
