AI Stocks Are On Sale — Dan Ives Calls It Another 'Gut Check' For Tech Investors
Big Tech is in a sentiment "penalty box" even as the multi‑year AI build‑out enters a critical acceleration phase, and Wedbush tech analyst Dan Ives argues that creates a prime entry point into the core AI winners. MSFT stock is moving. See the chart and price action here. Ives’ latest industry note frames the current pullback in the major AI platforms as another "gut check" stretch for tech investors heading into a pivotal earnings season. The market is wrestling with "worries around the costs of this once-in-a-generation tech buildout" just as spending ramps into what Ives calls the 4th Industrial Revolution. Microsoft (NASDAQ: MSFT ), Alphabet (NASDAQ: GOOGL ), Palantir Technologies (NASDAQ: PLTR ), Oracle (NYSE: ORCL ), Nvidia (NASDAQ: NVDA ), Amazon.com (NASDAQ: AMZN ) and Meta Platforms (NASDAQ: META ) are driving the trend but under massive selling pressure. Ives describes Micr...
Big Tech is in a sentiment "penalty box" even as the multi‑year AI build‑out enters a critical acceleration phase, and Wedbush tech analyst Dan Ives argues that creates a prime entry point into the core AI winners. MSFT stock is moving. See the chart and price action here. Ives’ latest industry note frames the current pullback in the major AI platforms as another "gut check" stretch for tech investors heading into a pivotal earnings season.
The market is wrestling with "worries around the costs of this once-in-a-generation tech buildout" just as spending ramps into what Ives calls the 4th Industrial Revolution. com (NASDAQ: AMZN ) and Meta Platforms (NASDAQ: META ) are driving the trend but under massive selling pressure. " Read Also: Powder Keg Stocks: 10 Most‑Shorted Names Primed For A Monster Squeeze ‘The Waiting Stage’ Ives argues the core issue is timing, not fundamentals.
Big Tech is in an "air pocket stage" where roughly $700 billion of capex this year is funding AI datacenter and compute buildouts, but monetization is still six to 12 months away for the software and consumer franchises sitting on top. Microsoft, Meta, and to a lesser extent Amazon and Alphabet, are "in the waiting stage to see the growth/monetization boom," according to the analyst, even as Alphabet has been "the golden child of this group" before a recent loss of engineers to Anthropic.
" Meta, in particular, is "looking to transform its business" with massive AI investments that will "take some time to hit numbers," pushing some investors toward memory and infrastructure names in the interim. " Rising Memory Costs The second source of anxiety is rising compute and memory costs, sharpened by Apple’s recent price increases. The news sparked "a negative jolt," according to Ives, and fears of a breaking point at which enterprises slow AI deployment, with the "game of musical chairs" leaving some hyperscalers without a chair. " Read Also: Palantir’s Worst Meltdown Since 2021: Michael Burry’s Big Short Draws Blood Image: Shutterstock