“Heading into 2024 we believe the tech sector is set up for an acceleration of spending around cloud and AI spending that we believe is being significantly underestimated by the Street. While IT budgets are expected to be up modestly in 2024, we believe cloud and AI driven spending will be up 20%-25% over the next year with use cases now exploding across the enterprise and consumer landscape.”

Public cloud end-user spending grew roughly 20% in 2024 on Gartner's tracking, and AI infrastructure/model spending grew far faster, putting combined cloud-and-AI spending growth in or above his 20%-25% range.