The new bull market for tech stocks is here as the sector is having a '1995-like AI Revolution,' Wedbush says

• The bull market for tech stocks is here, according to Wedbush analysts.
• Strong AI demand and IT spending should be able to power the sector higher through the next year.

The new bull market for tech stocks is here, as Wall Street's excitement for artificial intelligence means money is pouring into the sector, according to Wedbush analysts.

"We believe key solid results/guidance last night from the likes of tech stalwarts Salesforce, Okta, and Crowdstrike reinforce our thesis that a modestly improving IT spending environment on the heels of this '1995-like AI Revolution' creates a bullish set up for tech stocks into year-end and 2024," Wedbush analysts said a note on Thursday. "We believe tech stocks rip higher into year-end with the new tech bull market here."

Nvidia's latest earnings report in particular was a "drop the mic" moment, Wedbush added. The chipmaker's success should show investors that the demand for AI will be as strong as other revolutionary tech trends.

In addition to comparing AI to the early years of the internet, analysts also likened it to the advent of Apple's first iPhone in 2007.

A handful of investors have stayed bearish on the market, given the array of macro pressures that are currently beating down on stocks. Inflationary pressures could still be lingering in the economy, and the Fed has signaled it could continue to hike interest rates to tame high prices, a move that will weigh on equities.

Still, robust AI demand and IT spending should tip the market into the bullish direction, Wedbush said.

"It all comes down to growth in the tech space and what do true Street numbers ultimately look like into 2023, this remains the key focus in our opinion for investors," the firm added.