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Tech investors have struggled in 2022, with the Nasdaq Composite (COMP.IND) fell by almost 20% as some areas of strength turned south.
Whether it’s cloud computing or semiconductors, consumer technology or some enterprise technology groups, 2022 will be a weak year in the technology sector.
However, as the calendar shifts to 2023, investment firm Wedbush believes it won’t be the same for tech stocks next year, but it won’t be a big rebound either, with the answer. the word lies “between these two”. scenario” and sets the next calendar year as a “fork in the road”.
“We believe the tech sector in general will grow around 20% by 2023 from current levels with Big Tech, software and semiconductors leading despite a lot of macro policies and wild cards of the company. Fed,” wrote analyst Dan ives in a note to clients.
In setting the themes for the coming year, Ives noted that it could be a “messy but optimistic technology tape” for companies in good standing, as the Federal Reserve begins to slow down. interest rate increases, but the global economy weakens. continue.
Apple (NASDAQ:AAPL) remains the company’s top choice through 2023, even as the company has to deal with supply chain disruptions due to China’s COVID-free policies. As the country moves away from that strategy, maybe Apple (AAPL) will get its supply chain back up and running and its very popular iPhone 14 Pro and iPhone 14 Pro Max demand will be met.
It seems there are early signs of that, as investment firm UBS recently speak There has been evidence of improved iPhone 14 waiting times in both Apple products (AAPL) the key markets are the US and China.
Ives also noted that other areas of technology spending will be relatively strong in 2023, including cloud, software, and cybersecurity, even as a large number of Wall Street models take into account “one macroeconomic conditions are very uncertain”. [environment] over the next six to nine months,” Ives explains.
In cloud computing, Ives emphasizes Microsoft (NASDAQ:MSFT) and Salesforce (NYSE:CRM) is well-positioned in 2023, even if both companies have recently lay off workers against fears of slowing growth.
Palo Alto Network (PANW), CyberArk (CYBR), Test marks (CHKP) and Zscaler (ZS) is marked as the top cybersecurity name.
Ziff Davis (ZD), PRETTY (PRETTY), get off (ALIT) and Planetary Laboratory (PL) are marked as a number of “under the radar” stocks that fit the mantra of “growth at a fair price”.
Ives also said he expects M&A activity to pick up next year, when valuations have arrived, the Fed is nearing the end of its rate hike and growth is likely to remain steady, even as the global economy weakens further. .
As such, companies like Cerence (CRNC), Varonis (VRNS), usable (TEN), Progress software (PRGS) and quality (QLYS) could be an acquisition target.
Earlier this week, Apple (AAPL) announced that it is expanding the availability of the Emergency SOS satellite feature on its iPhone 14 series, service to some countries in Western Europe.
