Wedbush said the sharp sell-off in leading technology stocks reflects short-term impatience rather than a breakdown of the artificial intelligence trade. The broker recommended buying the dip in seven core AI names including Microsoft and Nvidia, calling the current environment a buying opportunity in what it describes as a multi-year AI bull run.
Wedbush said the sharp sell-off in leading technology stocks reflects short-term impatience rather than a breakdown of the artificial intelligence trade. The broker recommended buying the dip in seven core AI names, calling the current environment a buying opportunity in what it describes as a multi-year AI bull run.
"The sell-off reflects short-term impatience rather than any breakdown in the artificial intelligence trade," Wedbush said in a research note.
The broker named Microsoft Corp, Alphabet Inc, Palantir Technologies Inc, Oracle Corp, Nvidia Corp, Amazon.com Inc and Meta Platforms Inc as core AI names driving what it calls the fourth industrial revolution. Investors have been treating Microsoft and Meta as if they were bear-market stocks that cannot be owned, Wedbush said.
The sharp selling pressure comes as investors weigh stretched valuations after a prolonged rally in AI-related names. Wedbush's call positions the pullback as an entry point rather than the start of a broader correction in the technology sector.
The recommendation puts Wedbush at odds with the recent selling pressure, betting that AI infrastructure spending will sustain growth across the sector. Investors will watch upcoming earnings from these names for confirmation that demand trends remain intact.
This article is for informational purposes only and does not constitute investment advice.
