Wedbush (IVES) said the Greenland tariff battle of words will cause market weakness, but added that it provides the opportunity to buy “Tech Winners.”
Analysts led by Dan Ives said that the market will open weak this morning as the Street is showing natural concern around the U.S.-Europe tariff war of words with President Donald Trump focused on the contentious Greenland issue.
“Being here at Davos this week on the ground….the tariff scuffle is clearly an overhang on the conference as Trump gets here tomorrow to speak to tech leaders and various world leaders. Our view is just like over the last year the bark will be worse than the bite on this issue and tariff threats as negotiations take place and tensions ultimately calm down between Trump and EU leaders,” said Ives and his team.
The analysts noted that tech stocks will be hit as the “risk off dynamic” hits AI names, but they view this as an opportunity to own the tech winners for 2026 and beyond.
The analysts added that we are heading into what they believe, based on checks, will be a robustfourth quarter earnings season the next few weeks for tech stalwarts with a massive $550B of capital expenditure this year from Big Tech fueling the AI Revolution into its next stage of growth.
Ives and his team noted that for the first time in 30 years, the U.S. is ahead of China in the tech race as the AI Revolution is being fueled by Nvidia (NVDA), Microsoft (MSFT), Palantir Technologies (PLTR), Alphabet’s (GOOG) (GOOGL) Google, Advanced Micro Devices (AMD), Amazon (AMZN), and many other core U.S. tech names.
“On weakness this morning we would be buying many of our IVES AI 30 names, including Nvidia, Microsoft, Palantir, CrowdStrike (CRWD), Nebius (NBIS), Apple (AAPL), Palo Alto (PANW), Google, and Tesla (TSLA). The back and forth war of words between Trump and the EU will give investors another opportunity to own the tech winners and despite the bears always trying to yell fire in a crowded theater……the AI Revolution is still in the early days of playing out and this soap opera this week is not changing that dynamic in our view as the 4th Industrial Revolution hits its next stage of growth in 2026,” said Ives and his team.
Trump plans to meet global CEOs at the World Economic Forum in Davos on Wednesday for a special address, after which the CEO reception follows. However, the exact agenda remains unclear. U.S. policy shifts under Trump, including threats of tariffs on European countries, will likely dominate discussions. Reportedly, Greenland has been added to the agenda of the previously planned conference.
Treasury Secretary Scott Bessent has urged European countries not to retaliate against the U.S. trade tariffs announced over the Greenland issue.
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