Wells Fargo Securities’ Ohsung Kwon expects artificial intelligence to dominate the third quarter earnings season. “Aside from AI, I’m not excited about anything,” Kwon, the firm’s chief equity strategist, told CNBC’s “Fast Money” on Monday. He expects the demand for AI to be the main reason the results exceed Wall Street estimates. He insisted the sector was not in a bubble and said investors should stick with the group as fundamentals were driving recent gains. 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 hours after he released his first earnings season preview notes since starting at Wells Fargo in May. “High-tech equipment costs more because its share of GDP is well below PC and Internet boom levels,” he wrote in a research note. “Generative AI is being adopted nearly twice as fast at work and at home as the internet, and ChatGpt is the fastest growing consumer app in history. Software companies will have fewer employees.” Kwon pointed to a special model that helped build his predictions. “We basically looked at every macro variable we could find – we looked at about 350 macro variables. We went through this machine learning process to figure out where sales are and still point at a pretty decent beat. His prediction will happen when the S&P 500 and the tech-heavy Nasdaq close at all-time highs. S&P The 500 has gained nearly 15% so far this year, while the Nasdaq is up nearly 19% in 2025. Kwon’s S&P 500 year-end price target for next year is 7,200. This represents an increase of 7% from Monday’s close. Join Melissa Lee and “Fast Money” traders for a front row seat on Thursday, December 11th. Get your tickets now: cnbcevents.com/fastmoneylive Disclaimer
