Tech stocks are in the beginning stage of the next bull market and will jump another 12% this year, Wedbush's Dan Ives says

• Tech stocks are in a bull market and could jump another 10%-12% by year-end, Wedbush's Dan Ives said.
• That's due to the hype for artificial intelligence, which is creating another "1995 moment" in the space.

Tech stocks are in the early stages of a bull market, and the sector is primed to stage a big rally by the end of this year, according to Wedbush's Dan Ives.

Tech stocks could surge 10%-12% by the end of 2023 thanks to fundamentals that are holding up like "the Rock of Gibraltar," he predicted in a note on Tuesday, pointing to positive earnings for Microsoft and Palantir last quarter.

Wall Street's enthusiasm for artificial intelligence also isn't likely to wane anytime soon. There's around $1 trillion of AI spending set to take place over the next decade, Wedbush estimated. That's recreating a "1995 moment" for the tech sector, the year the internet started to transform the space, Ives previously said.

"We believe this is the beginning of the next tech bull market. And ultimately, that's why I think it's a table-pounder, not just into year-end, but into 2024," Ives said in an interview with CNBC on Tuesday, expanding on his note.

Tech stocks have already soared this year as generative AI piqued the interest of investors. The sector is now at a record-high compared to the S&P 500, eclipsing the peak of the dot-com bubble.

Meanwhile, the tech-heavy Nasdaq just notched eight straight winning sessions on Tuesday — its longest winning streak in nearly two years.

"The macro story is overshadowing the biggest technology revolution in the last 30 years with AI a '1995 Moment' and we believe the fundamental tech growth stories/use cases are accelerating and have been front and center during 3Q earnings season," Ives added in his note.

But other Wall Street forecasters are more skeptical of the outlook on tech. The Magnificent Seven stocks — a group of megacap tech giants that have accounted for most of the stock market's gains this year — are likely overvalued, according to Richard Bernstein Advisors, which instead sees a "once-in-a-generation" investment opportunity in virtually everything other than the Magnificent Seven.