Tom Lee, the co-founder of Fundstrat, predicts that large-cap technology stocks will continue to surge in 2023, and FAANG shares could have even more room to grow. Lee believes that FAANG (Facebook’s parent company Meta, Amazon, Apple, Netflix, and Alphabet) could rise by up to 50% this year. He anticipates a rebound in FAANG companies after they took a beating in the second half of 2022.
Tech Shares Stronger Than Anticipated
Lee added that the growth case for tech shares, including non-FAANG names, is stronger than he had realized. He believes that FAANG and other relevant tech companies like Nvidia and semis are crucial in dealing with inflation, whether it’s through AI or automation. These companies are incredibly important, and their ability to grow their profits can only improve.
Future Profits Could Expand
According to Lee, the demand for tech products will grow, and there’s no new competition. As a result, these companies’ ability to make future profits is higher, which will increase their PE and pull up the whole market. Therefore, he recommends that investors pay attention to these companies and invest in them for future gains.
In conclusion, FAANG and other relevant tech companies are poised for growth in 2023, and investors should keep an eye on them. The demand for tech products will continue to grow, and these companies’ ability to make future profits is higher, which will increase their PE and pull up the whole market.
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