Wedbush analyst Dan Ives said the market sell-off is a buying opportunity for many AI names as investors take a “risk-off” approach to the markets amid US trade tensions with the EU over the future of Greenland.
That includes some of the biggest laggards in Tuesday’s trading session, including Nvidia (NVDA), Microsoft (MSFT), Palantir (PLTR), CrowdStrike (CRWD), Nebius (NBIS), Apple (AAPL), Palo Alto (PANW), Google (GOOG), and Tesla (TSLA).
“The back and forth war of words between Trump and the EU will give investors another opportunity to own the tech winners and despite the bears always trying to yell fire in a crowded theater,” Ives, who is quite bullish on the sector, wrote in a note to clients, adding, “the AI Revolution is still in the early days of playing out.”
Ives believes the US is in the midst of the “4th Industrial Revolution” that will see its “next stage of growth in 2026.”
Tom Essaye, Sevens Report Research founder, told Yahoo Finance’s Opening Bid that “every sort of decent dip should be viewed as a buying opportunity,” though he said to wait for a further dip of 3% to 5% from the recent highs to jump in.
“Unless you are concerned that Trump will willingly enact policies that will slow the economy or hurt the markets … then you have to focus on earnings, on underlying solid economic growth, on the fact that the Fed is still likely to cut rates, probably in the first half of this year, and that AI enthusiasm is still alive and well and as long as those things are true,” Essaye said.
The tech sector ETF (XLK) was down by about 1.3% in the early trading session.