But here in early 2024, there seems to be a lot of debate surrounding the AI Boom’s sustainability. Was 2023 a one-year fluke or the start of a big multi-year boom in AI stocks?
Heralding the Multi-Year Boom
Back in late 2022, tech stocks were crashing. Now they’re soaring.
In just 12 months, we’ve essentially gone from an all-out tech stock crash to an all-out boom.
That’s extremely rare.
And over the past 50 years, every time tech stocks have gone from crashing to soaring like this, it marked the start of a multi-year boom in tech stocks.
Specifically, trailing 12-month returns on the tech-heavy Nasdaq Composite swung from -25% in late 2022 to +25% in late 2023.
Upward price momentum thrusts of this sort are exceptionally rare. In its 50-plus year history, the Nasdaq has only swung from trailing 12-month returns of -25% to +25% four times before.
And all four instances marked the start of a multi-year tech bull market.
This upward price momentum thrust happened in the late 1970s, as tech stocks were shaking off the inflation fight of that decade. And over the next 10 years, tech stocks soared more than 500%.
This also happened in the early 1990s, as tech stocks were emerging from a shallow U.S. recession. And over the next decade’s dot-com boom, tech stocks soared more than 800%.
It happened again in the early 2000s, when tech stocks finally bottomed after the dot-com crash. Tech stocks went on to rally about 70% over the next five years.
And it happened right after the 2008 financial crisis, too – right before tech stocks soared more than 300% over the next 10 years.
The evidence is crystal clear, with no counterexamples.
A major AI bull market has begun. And it’s time to prepare for potentially enormous incoming gains.
The Final Word on the AI Bull Market
Whenever tech stocks go from crashing to soaring like they did over the past 12 months, it always marks the start of a multi-year tech bull market.
So, no, 2023 was no fluke.
It was the start of a 10-year AI bull market, wherein AI stocks will soar hundreds upon hundreds of percent.
Worried about the rough start to the year? Don’t be. It will prove to be just a bump in the road during the first few innings of this AI Boom…
And a terrific buying opportunity.
Especially if you know what AI stocks you should be buying now for the biggest returns.
Luckily, buying the top AI stocks to crush the market is exactly what we specialize in.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.