Top Analyst Remains 'Very Bullish' About '3 To 5 Year Bull Market' Despite Tech-Induced Market Pullbacks

Noted tech analyst and Tesla Inc. bull Gene Munster reassured investors amid a tech stock rotation.

What Happened: During CNBC’s “Squawk Box” on Thursday, Munster highlighted that the market pullback in recent times is much better than the pullback during the dot-com bust era.

“It is normal when the market is so strong for investors to get near-term nervous about some events, yesterday be it commentary from Trump and Biden around regulation and treatment of Taiwan,” Munster said.

“But at the end of the day, the fundamentals are going to power AI. They are much more powerful than politics and I’m still very bullish that we are in a three to five-year bull market.”

Munster also pointed out that private AI software companies such as OpenAI and Elon Musk‘s xAI will be the “apple” for public investors to “get a shot at” after they become publicly listed in a couple of years.

The rotation out of tech has some investors sweating. But @Munster_Gene reminds us pullbacks aren't uncommon:
"It is normal when the market is so strong for investors to get near-term nervous about some events." pic.twitter.com/HE2pg17764

— Squawk Box (@SquawkCNBC) July 18, 2024

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Why It Matters: Munster’s comes at a time when the tech-heavy Nasdaq 100 suffered its worst day in nearly a year. The index tumbled by 2.7% following news of the Biden administration hastening export restrictions to China, causing a broad selloff in the semiconductor industry.

Despite the recent downturn, the U.S. stock market has seen a surge in recent months, largely attributed to the excitement surrounding AI. This rally has led to comparisons with the dot-com bubble of the late 1990s, raising concerns about potential overvaluation.

While the current market situation has stirred significant concern among investors, some analysts see potential benefits for select tech stocks. Amid the geopolitical tensions and potential for higher tariffs, certain companies are strategically positioned to benefit from the changing landscape.

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Image via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari