Tech stocks have stumbled in recent sessions, with high valuations and global risks fueling investor jitters. However, Wedbush’s tech analyst Dan Ives isn’t concerned. He sees the dip as short-term and believes it could be an “opportunity to own the core winners.”
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During the broader market sell-off, Nvidia (NVDA) has slipped nearly 3% this week, while Microsoft (MSFT) is down 2.7% and Alphabet (GOOGL) has dropped 2.24%. Chipmakers like Advanced Micro Devices (AMD), Broadcom (AVGO), and Micron (MU) have also faced declines.
Wedbush’s Ives Sees a ‘1996 Moment’ in Tech
Ives believes that tech stocks are currently in a “1996 moment.” He adds that such pullbacks are healthy and he expects the bull cycle to stay intact for another two to three years.
According to Ives, this tech rally is powered by the biggest wave of technology investment in decades, the AI boom. It’s still the early stages, with AI use cases just beginning to spread quickly as more companies see the value it creates.
For context, the “1996 moment” for stocks refers to when then-Fed Chair Alan Greenspan warned about too much excitement in the markets. At the time, tech stocks were booming, and many feared valuations were way too high. But instead of collapsing, the tech rally kept going for several more years.
Ives Stays Bullish on Nvidia
Ives remains specifically bullish on Nvidia ahead of its earnings next week. He expects results to highlight overwhelming demand, noting that “demand to supply ratio is 10:1 for Nvidia’s golden chips.” He also believes Nvidia will continue to be the central player driving the AI revolution.
Notably, Ives has been following the tech sector on Wall Street for more than two decades. He serves as Managing Director and Senior Equity Research Analyst at Wedbush Securities. On TipRanks, he holds a solid 4.5-star rating and is ranked 1078 out of nearly 10,000 analysts tracked.
Which Tech Stock Is the Better Buy?
Using TipRanks’ Stock Comparison Tool, we placed the above-mentioned tech stocks against each other to find the best stock, according to analysts. Among these stocks, NVDA, MSFT, AVGO, and MU carry Strong Buy ratings from analysts.
In fact, MU stock carries the highest upside potential among the group, with analysts projecting a 31.23% gain from current levels, based on an average price target of $153.81.
