tl;dr
Dan Ives of Wedbush Securities predicts cybersecurity will be the top tech subsector in 2024, driven by cloud computing demand, despite currently lagging behind AI and high-growth software. He highlights companies like CrowdStrike, Zscaler, Palo Alto, and Check Point as key players. Ives is also opt...
Dan Ives, the global head of technology research at Wedbush Securities, believes the market has misjudged a key tech subsector in 2024. He predicts that cybersecurity, despite lagging behind other areas like artificial intelligence and high-growth software, is poised to be the biggest subsector of the year for tech investors.
Ives points to major players such as CrowdStrike, Zscaler, Palo Alto, and Check Point, highlighting how the increasing shift to cloud computing will drive demand for robust cybersecurity solutions. He expects this subsector not only to outperform during earnings season but also to seize significant market attention moving forward.
Additionally, Ives expresses strong optimism about IBM, anticipat ing a resurgence fueled by the company’s advances and growing adoption of AI technologies. He suggests that IBM is undergoing a “renaissance,” making it a stock that could be re-rated upward as investors come to better appreciate its AI-driven transformation.
Overall, Ives’s insights challenge current market rotations, encouraging investors to reconsider the potential of cybersecurity and AI-focused tech giants like IBM, which may have been undervalued in recent trading trends.