EXCLUSIVE: Gene Munster Predicts 1990s-Like Surge In Tech Stocks, Cautions Against AI's 'Bubble-Like' Environment

Gene Munster, the managing partner at Deepwater Asset Management, shared his insightful year-ahead outlook for the technology sector.

In an appearance on Benzinga’s “PreMarket Prep” Wednesday, Munster provided a comprehensive look into the future of tech stocks. Artificial intelligence will fundamentally transform the landscape in the years to come, Munster said.

7 Key Insights From Munster

1. AI-Driven Bull Market: Expect a significant bull market driven by AI over the next three to five years. Munster likens this stage to the 1995 dot-com era. This optimistic outlook places AI at the forefront of technological advancements, with Munster expecting substantial growth in this domain.
   
2. Microsoft And Meta: While Nvidia Corp NVDA remains a front-runner, other tech giants like Microsoft Corp. MSFT and Meta Platforms Inc. META will likely benefit the most from advancements in AI and see substantial gains.
   
3. Meta's AI-Driven Growth: Munster remains bullish on Meta. The Facebook parent company’s development of AI-powered products and services could lead to an increase in user engagement and growth, he said. Meta is poised to leverage what he terms “Metaverse optionality.” That’s a strategic wildcard the social media behemoth is anticipated to deploy in the coming year, he said.
   
4. Potential in Smaller AI Players: Munster highlighted smaller companies like CrowdStrike Holdings Inc. CRWD and Nubank. Both companies hold significant potential in the AI landscape due to their unique market positions and innovative approaches, in his view. Thanks to the adoption of AI in its operations, Nubank has emerged as the fastest-growing financial company in South America, Munster said.
   
5. The Future of Apple and AI: Apple Inc. AAPL ‘s potential AI initiatives, such as an AI-driven Siri, could lead to multiple expansions for the company. Munster anticipates Apple will make significant strides in AI, enhancing its existing product ecosystem.
   
6. Challenges and Opportunities: While optimistic about AI, Munster acknowledges the challenges and potential for overestimation of AI’s impact. He emphasizes the need for nimble strategies to navigate the possible “bubble-like atmosphere” in the AI market.
   
7. The Broader Tech Sector: Tech companies, especially those under $20 billion in market cap, are poised for significant performance improvements in 2024, Munster said.

Watch the full interview with Gene Munster below:

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Gene Munster. Courtesy photo.