Tensions between President Trump and China’s President Xi over rare earth metals have rattled tech stocks, but Wedbush Securities says this is actually a buying opportunity. In fact, after a period of calm and improving U.S.-China relations, this sudden flare-up has caused a sharp sell-off in tech. Still, five-star Wedbush analyst Dan Ives believes that the market’s fears may be overblown. He compared the situation to a high-stakes poker game and said that the drama will likely settle down without serious long-term consequences, just like it did during a similar scare back in April.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ives explained that these kinds of flare-ups often create moments of panic, but they don’t usually last. Instead, he sees them as chances to invest in long-term winners, especially in areas like semiconductors, software, and artificial intelligence. Even with growing pressure in China on companies like Nvidia (NVDA), Ives believes that the overall outlook for tech remains strong and that these short bursts of fear are part of the ride for tech investors.
With that mindset, Ives remains optimistic about the biggest names in tech. He specifically named Nvidia, Microsoft (MSFT), Palantir (PLTR), Meta (META), Alphabet (GOOGL), and Amazon (AMZN) as the companies that are driving the AI revolution. As a result, his advice to investors is to not panic during sell-offs like this one but to consider doubling down on tech winners.
Which Tech Stock Is the Better Buy?
Turning to Wall Street, out of the six stocks mentioned above, analysts think that META stock has the most room to run. In fact, META’s average price target of $875.86 per share implies more than 23% upside potential. On the other hand, analysts expect the least from PLTR stock, as its average price target of $157.33 equates to a loss of 11%.
