Ohsung Kwon of Wells Fargo Securities hopes that artificial intelligence will dominate the third quarter revenue season. “Other than AI, I’m not excited about anything,” Kwon, the company’s chief equity strategist, told CNBC’s “Fast Money” on Monday. He expects demand for AI will be the main reason the outcome exceeds Wall Street estimates. He argued that the sector hasn’t fallen into a bubble, and said investors should stick to the group as the foundations drive recent profits. According to Kwon, AI trading is still in its early innings. “I think AI is more important than the Fed,” he said. Kwon’s comments came just hours after he released his first revenue season preview notes since it began at Wells Fargo in May. “The GDP ratio is well below the PC and internet boom levels, which means the cost of high-tech equipment is incurred,” he wrote in his research notes. “Generated AI is adopted almost twice as fast as the internet at work and at home, and ChatGpt is the fastest growing consumer app of all time. Software companies have fewer employees.” Kwon pointed out a special model that helps build his predictions. “We basically looked at every macro variable we could find – we looked at about 350 macro variables. After going through this machine learning process, we figure out where sales are and still point to a fairly decent beat. His predictions come when the S&P 500 and the high-tech Nasdaq close to an all-time high. The S&P 500 has won nearly 15% so far this year, but the Nasdaq has grown nearly 19% in 2025. Next year’s price target for the S&P 500 year-end is 7,200. This means a 7% increase from the end of Monday. Join us in the front row seating for the ultimate holiday trading experience with Melissary and “fast money” traders on Thursday, December 11th. Get your tickets now: cnbcevents.com/fastmoneyliveDisclaimer
