Despite warnings of a speculative bubble due to outsized gains by some market winners, Munster insists a tech bubble is expected given the transformative potential of AI. He also predicts AI could boost labor productivity growth by 1.5 percentage points over the next decade, a view supported by Goldman Sachs. Other Wall Street strategists also foresee a long-running bull market in the tech sector.
Key takeaways:
- Gene Munster, managing partner at Deepwater Assert Management, predicts a long bull market in tech stocks starting from 2024, driven by AI.
- The bull market could last for three to five years and is expected to result in a tech bubble.
- Munster believes that small-cap tech companies will outperform the market, rather than the 'Magnificent Seven' stocks that dominated in 2023.
- Other Wall Street strategists echo Munster's views, warning of a potential shift away from the 'Magnificent Seven' due to their extreme valuations.