Nasdaq index could grow by 19% in 2022

Specialists of the private investment company Wedbush shared their forecasts regarding the further dynamics of the Nasdaq index, focused on high-tech companies. 

Annual growth in this segment is expected to reach 30%, which will allow the index to grow to 19,000 next year, which is 19% higher than the 2021 target of 16,000.

The company's analysts believe that in 2022, the three largest companies in the world – Microsoft, Apple and Alphabet – will push the index up. Microsoft and Google will be able to earn even more on the transition to cloud technologies. At the moment, this industry is still at the initial stages of development.

In the second half of next year, the shortage of semiconductors will decrease, which will help improve the fundamental aspect of demand for technology companies. The segments of cloud technologies, cybersecurity, 5G and metaverse have also already seen growth. 

«We think that 90% of cloud projects have already received the green light from IT directors. Decent sums have already been allocated for cloud technologies in the budgets for 2022, while Microsoft is determined to take a significant market share from Amazon Web Services,» – Wedbush experts say.

Apple's capitalization next year is likely to exceed $3 trillion with continued growth due to the iPhone upgrade super cycle. Moreover, investors should take a closer look at companies from the cybersecurity industry, for example, the shares of Zscaler, Palo Alto Networks and Cyber-Ark.