The technology sector is gearing up for a significant acceleration in 2024, with artificial intelligence (AI) and cloud computing spending expected to surge as their applications broaden. Wedbush analysts, led by Dan Ives, predict that AI will be the most transformative technology trend since the internet's inception in 1995. They believe that the potential $1 trillion spend on AI over the next decade is still being underestimated by many on Wall Street. This optimism for tech is reflected in the NASDAQ 100-Index's (NDX) impressive 47% rise in 2023 thus far. Nvidia (NVDA, Financial) and Microsoft (MSFT, Financial) are anticipated to lead the way in this transformative period.
In the realm of digital currencies, investment funds have seen consistent inflows, with the last week marking the 10th consecutive week of positive movement, totaling $1.76 billion. CoinShares reported that this streak of inflows is the largest since October 2021. Bitcoin (BTC-USD, Financial) accounted for 75% of the recent inflows, while Ethereum (ETH-USD, Financial) also saw substantial interest, indicating a bullish sentiment in the cryptocurrency market.
In the pharmaceutical sector, RBC has expressed confidence that Sarepta's (SRPT, Financial) drug Elevidys will likely remain on the market, following positive remarks from FDA official Peter Marks. RBC estimates that Sarepta's market value could reach $120 if Elevidys receives full approval for treating young patients with Duchenne muscular dystrophy. The drug's accelerated approval in June has set the stage for potential near-term revenue and valuation growth.
The airline industry is abuzz with the announcement that Alaska Air Group (ALK, Financial) plans to acquire Hawaiian Holdings (HA, Financial) for $1.9 billion. The deal is expected to bring synergies and earnings accretion, with Alaska Air Group projecting $235 million in synergies within two years post-closure. The combined airline will operate under one loyalty platform while maintaining separate brand identities.
In the energy sector, NextEra Energy Partners (NEP, Financial) has announced a private offering of senior unsecured notes worth $750 million, due in 2029. The proceeds are intended to repay existing debts and strengthen the company's financial position. This move underscores the ongoing strategic financial management within the energy industry.
Carvana Co. (CVNA, Financial) has received an upgrade from JPMorgan to a Neutral rating. The analyst believes that Carvana has a potential path through the current macroeconomic and industry challenges. The company's investments in infrastructure and network, including the acquisition of ADESA's physical auction business, could provide a long-term competitive edge.
