Cloud Computing and AI Will Be Persisting Themes in Tech

2023’s market rally continues to center itself on the big tech comeback with certain themes exhibiting strength like artificial intelligence (AI) and cloud computing. While these themes can offer traders short-term opportunities, they can also persist in the long term as growth plays.

With all the focus on interest rates and inflation, it isn’t stopping the growth of cloud computing. Research data suggests that subsectors of tech will continue to witness exponential growth in the next few years.

“No longer an emerging trend, Gartner predicts public cloud service and user spending to grow nearly 22%, totaling more than $597 billion in 2023, up from $491 billion in 2022,” an E-Week article said, noting that the report data also mentioned that “75% of organizations will utilize a cloud-driven digital transformation model by 2026.”

High interest rates certainly stifled big tech in 2022 with gloomy forecasts on spending as companies looked to slash their budgets amid high interest rates. Given the macroeconomic forces weighing on not just technology, but all sectors, investment in cloud computing as well as AI doesn’t appear to be waning.

“The economic uncertainty may factor into IT budgets and buying decisions, but this doesn’t seem to be slowing down investment in the cloud,” the article added. “In fact, going forward, generative AI will be a major factor that drives many organization’s tech stack purchase decisions.”