In This Article:
In 2023, the tech sector has displayed significant growth, particularly driven by the adoption of generative AI models. TECHnalysis Research, LLC President and Chief Analyst Bob O'Donnell joins Yahoo Finance Live to discuss key trends and companies shaping this growth.
“Most people in their jobs, have yet to experience it [generative AI],” O'Donnell states, who notes the rollout is just the beginning for most companies and expects an “explosion” for companies such as Microsoft (MSFT) and Alphabet (GOOG, GOOGL).
While several of the Magnificent Seven tech stocks have ventured into the artificial intelligence space, O'Donnell believes that Apple (AAPL) is falling behind its competition. “Apple is behind the curve, on this one,” O'Donnell says.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
[AUDIO LOGO]
JOSH LIPTON: Tech having a huge year in the stock market in 2023, particularly in the AI space with a frontier of potential growth on the horizon. We could see a new Magnificent Seven come into focus for more on what investors should watch for in the tech market going into 2024. We turn now to TECHnalysis, Research President and chief analyst Bob O'Donnell. Bob, it is always good to see you, my friend.
There were a few big trends Bob in 2023, we could start in a few different places but let's start with AI, boom of interest there in 2023, Bob. We saw all kinds of companies putting time and money and effort into that tech. As you look ahead in 2024, Bob, I'm interested. How do you see generative AI as a technology evolving, Bob? And what are some of the companies you think are poised to benefit from that.
BOB O'DONNELL: Well, hey Josh, first of all great to see you again. Yeah, look we had obviously this explosion of interest in Gen AI but what I want to point out to folks is that most people in their jobs have yet to really experience it because Microsoft Office and Google Workspace, these are the tools that most people use every day in their normal work environment and we're just barely starting to see the rollout of the Gen AI powered versions of these tools.
So I think, despite the fact that some people are saying, hey, it's we're going to see a pullback on the hype, I actually think we're going to see a bit more of an explosion of interest around Gen AI as the general populace starts to use these tools. So, you know, again Microsoft, it's Google, those kind of companies are going to be important. You're going to see OpenAI and the other companies associated with Microsoft and Google.