Wedbush Securities analyst Dan Ives is encouraging investors to stay the course amid the current downturn in technology stocks related to artificial intelligence (AI).
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In a social media post, Ives, who is a closely followed technology analyst, refers to the recent selloff in AI names as a “mini panic” and says it is not likely to last long. “We view this as short lived mini panic moment for tech stocks as we believe tech stocks will have a major rally into the rest of the year as investors look to play the AI Revolution,” wrote Ives on X/Twitter.
The managing director at Wedbush Securities is known to be bullish on the technology sector and said the 500-point decline in the Nasdaq index on Nov. 13 is likely some “temporary turbulence” rather than a sign of an AI bubble bursting or lasting market weakness.
Healthy Rebalancing
Ives points out that the sudden and sharp downturn in AI stocks such as Nvidia (NVDA), Meta Platforms (META), and CoreWeave (CRWV) might turn out to be a healthy rebalancing rather than an indication of a market top or structural weakness in equity markets.
Ives adds that he continues to expect AI investments to lead to an “innovation renaissance” in the U.S. over the next decade. While many investors have begun to worry about AI capital expenditures, Ives stresses that the broader technology sector remains strong and positioned for long-term growth.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 42 Wall Street analysts. That rating is based on 34 Buy, seven Hold, and one Sell recommendations issued in the last three months. The average META price target of $846.48 implies 39.13% upside from current levels.
