Even though Nvidia (NVDA) reported better-than-expected results, AI-related stocks dropped on Thursday. This happened because investors started to doubt whether the current surge in AI spending can last. With more people turning cautious, Wedbush Securities repeated its advice to keep buying top-performing AI stocks. In fact, five-star analyst Dan Ives compared this to what happened back in January during the “DeepSeek Moment,” when concerns about Chinese AI lab DeepSeek made people worry that Big Tech companies were spending too much.
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Ives explained that just like back then, the AI sector is now going through a reality check. Investors are nervous that Nvidia’s tech customers might slow down spending or that the shift toward AI might not be as long-lasting as expected. But Wedbush still believes in the long-term future of AI, and predicts that companies will invest between $3 trillion and $4 trillion over the next few years. This massive spending is expected to lead to big changes in how businesses and individuals use automation, robotics, and AI.
Because of this strong belief in AI’s future, Ives is sticking with his recommendation to buy key AI stocks at today’s prices. He pointed to companies like Microsoft (MSFT), Oracle (ORCL), Palantir (PLTR), Google (GOOGL), Tesla (TSLA), Apple (AAPL), CrowdStrike (CRWD), Palo Alto Networks (PANW), and Amazon (AMZN), along with Nvidia. Even though the market may feel uncertain right now, Wedbush believes these companies are leading the AI industry and are smart long-term picks.
Which AI Stock Is the Better Buy?
Turning to Wall Street, out of the stocks mentioned above, analysts think that Oracle stock has the most room to run. In fact, Oracle’s average price target of $352.52 per share implies more than 76% upside potential. On the other hand, analysts expect the least from Tesla stock, as its average price target of $383.37 equates to a loss of 4.2%.
