The tech sector continues to thrive, with the iShares Global Tech ETF boasting over 50% returns in 2023, outpacing the S&P 500. Citi is optimistic about opportunities in the tech sector, particularly in markets like China, where additional policy support is expected to improve sentiment and lead to a mild cyclical recovery in 2024. The bank also sees potential gains for global stocks, with the MSCI AC World potentially seeing a 5% upside by the end of the year.
Citi’s outlook also extends to specific tech stocks, with Arista Networks being added to the list of top “high-conviction” picks. The bank is bullish on Arista’s position in the long-term exposure to the general artificial intelligence megatrend and believes the company is likely to benefit from early AI-related opportunities. Investors looking for further upside in the tech sector may consider Citi’s list of high-conviction stock recommendations from markets across the United States, Europe, Asia-Pacific, and Latin America.
In addition to opportunities in the tech sector, Citi is also bullish on artificial intelligence outside of technology, citing the efficiencies it can bring to basic business, legal, and medical services, which are expected to become readily apparent sooner than many expect. Overall, Citi’s positive outlook emphasizes the potential for continued growth in global stocks and specific tech investments in the near future.
