TECH - 'AI Revolution' Key Narrative For Q4 Tech Earnings Says Analyst As He Flags A 'Glaring Positive' That Can Mitigate Bears' Valuation Concerns | Benzinga
Tech earnings season starts in earnest next week, with the likes of Netflix, Inc. (NASDAQ:NFLX), Tesla, Inc. (NASDAQ:TSLA), Intel Corp. (NASDAQ:INTC) and International Business Machines Corp. (NYSE:IBM) all in the mix. An analyst at Wedbush said on Tuesday that he sees the tech stocks belying bearish predictions.
Demand Perking Up: “All Street eyes are on 4Q earnings season and initial 2024 guidance for the tech sector to gauge underlying enterprise and consumer demand,” said Daniel Ives in a note.
There has been an uptick in demand for enterprise software and cyber security, and a clear surge in demand around major AI projects, Ives said, citing channel checks. Use cases are exploding in 2024, he said. On the flip side, the analyst noted weakness in small and medium businesses. ” Overall we
see ‘less caution’ from CIOs than we picked up in the field 3 months ago which is a glaring positive,” he said.
AI Key Narrative: The key narrative for fourth-quarter tech earnings is the “beginning ...