Tech stocks led the S&P 500 from 2,000 to 3,000. The sector may still have far to run

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Traders work on the floor of the New York Stock Exchange (NYSE) on July 10, 2019 in New York City. Following remarks from Federal Reserve Chairman Jerome Powell about a possible rate cut, the Dow rallied on Wednesday and the S&P 500 crossed 3,000 points for the first time ever.

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Those companies could continue to see staggering growth if they are willing to adopt new technologies, according to Tony Nash, CEO of forecasting and analytics company Complete Intelligence.

“It’s not necessarily just the revenue growth. It’s the efficiency (gains) that you get through some of these technology firms,” Nash said, adding that the way Nvidia has increased the processing speed for users is “pretty incredible.”

While he said Netflix, which rose by more than 450% over the same time period, may see some push back because of competition from Disney and other legacy media, others can continue their climb. “Some of them are seeing real … sustainable gains, not just on growth but on productivity and efficiency,” he told CNBC’s “Street Signs ” on Thursday.

New technologies can bring efficiency to financial services companies or into the area of corporate procurement and supply chain management, Nash said.

If a manufacturing company can raise its revenue at a steady rate, but then becomes more efficient in its operations and finances, the firm can “absolutely” hit new highs in its stock price, he said.

Nash said his firm has benefited from using artificial intelligence and machine learning, and said such technology may drive meaningful growth in businesses.

“I am a big believer in this, and I do think that it’s sustainable,” Nash said. “But it’s sustainable first of all, in pockets, second of all — do the executive teams have the courage to let their companies adopt these technologies. That’s a big question.”

The pace of adoption remains to be seen, however, he said.

“It depends on how quickly these companies will want to adopt it,” he said. “Will companies adopt technologies that will displace workers and change their profile? I think that’s the real question.”

“If shareholders are aggressively pushing those executives to make changes to their operations and their back end, then I think yes, we can continue to see (stock rallies), especially with the technology companies.”

— CNBC’s Yun Li and Fred Imbert contributed to this report.