Despite stronger-than-expected results from Nvidia (NVDA), artificial intelligence-related stocks fell on Thursday, as investors questioned the legitimacy of the AI spending boom. And with bearish sentiment on the rise, Wedbush Securities has reiterated its stance that investors should buy “AI winners.”
“We have heard from thousands of the bears over the last 24 hours through social media … just like the ‘DeepSeek Moment’ in January which at the time convinced the market the Big Tech cap-ex spending cycle was way over the skis,” analyst Dan Ives wrote in a note to clients, referring to the time earlier this year when investors became concerned that Chinese AI lab DeepSeek (DEEPSEEK) had spooked the markets.
But just like then, the AI Revolution is going through a “gut check phase” and the investment firm remains bullish on tech going into next year and beyond.
“Today the fear is around the ‘market telling us something’ about Nvidia’s tech customers and the sustainability of this transformation playing out over the next few years,” Ives continued. “As we discussed $3 trillion-$4 trillion is going to be spent over the next few years on this AI Revolution buildout…this is how we are getting to an autonomous, robotics, and AI future that will change the way companies and individuals work and live.”
As such, Ives reiterated his call that stocks such as Nvidia, Microsoft (MSFT), Oracle (ORCL), Palantir (PLTR), Google (GOOG) (GOOGL), Tesla (TSLA), Apple (AAPL), CrowdStrike (CRWD), Palo Alto Networks (PANW) and Amazon (AMZN) be bought at current levels.