Despite the deeper 2023 macro overhang cloud, Wedbush Securities remains positive for technology.

As Wall Street completes the 2022 trading year and looks ahead to 2023, Wedbush Securities detailed its prediction for the technology industry. The company forecasts continued pressure on the industry, but there are still chances.

Given the risk/reward valuation levels on the tech sector and the most under owned tech stocks since the 2009 timeframe, Wedbush Securities wrote in a note to investors that "we believe tech stocks are reflecting massive amounts of bad news priced in and the set-up overall into 2023 is net bullish despite the darker macro."

As it stated: "We believe the IT sector is poised for a big wave of consolidation," the financial institution also listed some of its top Christmas hopes and forecasts for the technology industry in 2023. It also emphasised that the industry may experience some mergers and acquisitions.

In addition, the company stated: "We expect cyber security spend will be a pillar of strength into 2023." Palo Alto Networks (NASDAQ:PANW), CyberArk Software (NASDAQ:CYBR), Zscaler (NASDAQ:ZS), Tenable Holdings (NASDAQ:TENB), and Check Point Software Technologies are a few stocks Wedbush Securities likes (CHKP).

Wedbush also assigned outperform recommendations to all of the aforementioned names and provided the following price targets: PANW - $200, CYBR - $170, ZS - $180, TENB - $48, and CHKP - $145.

Additionally, the financial company thinks Apple (NASDAQ:AAPL) should stop producing its iPhones in China because Foxconn's problems and Covid lockdowns are still a problem. Wedbush also predicts that Apple will introduce its Apple Glasses in 2023. Additionally, it added a $200 price target and listed Apple as an outperform.

Overarching conclusion: "We estimate Big Tech will likely need to eliminate another 8%–10% of its personnel to handle this slowdown around 2023 and adjust to lower growth profiles ahead."

Following the broader market's second consecutive week of losses, stock indices eked out a small gain.