Now Could Be a Good Time to Do Bargain Hunting for Large-Cap Tech Stocks: Wedbush Securities Senior Analyst

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As a seasoned crypto investor with over two decades of experience under my belt, I find Daniel Ives’ analysis reassuring and insightful. His extensive background in tech stock coverage allows him to navigate market turbulence with a level of confidence that instills trust in his predictions.

On August 5th, Daniel Ives, a Senior Equity Research Analyst at Wedbush Securities and Managing Director, expressed his views on Bloomberg TV about the current tech stock market status. Despite the recent market uncertainties, Ives highlighted that this phase presents an excellent buying opportunity for large-cap tech stocks. He firmly believes that the upward trend in tech stocks is still strong and ongoing.

Ives shared insights suggesting a surge of investor doubts about whether the technology sector’s bull run has peaked. However, he asserts these fears are unwarranted, likening the present scenario to a tense but brief moment in an ongoing tech stock bull market. He underlines the importance of guidance during such turbulent phases, expressing confidence that this dip is temporary rather than indicative of a significant change in the market’s direction.

When queried about factors that might change his optimistic position on tech stocks, Ives highlighted the importance of observing significant weakening trends within the technology sector. Yet, he underlined that recent financial reports, Asian supply chain assessments, and forecasts for future consumer demand have exhibited no such signs of deterioration. Ives remains convinced that these signals bolster his belief that the present market landscape presents an excellent chance to purchase top-tier, large-cap technology shares.

In addition, Ives discussed the relationship between technology stocks and broader economic movements, focusing on changes in US-Japan exchange rates. He admitted that the unwinding of trades related to these exchange rate swings has increased market instability. However, he contended that the core strengths of the tech industry remain strong, especially considering the continuous advancements in artificial intelligence, which he referred to as a “rare 40-year cycle.”

Ives pointed out Microsoft, Oracle, Nvidia, Palo Alto Networks, Apple, and Tesla as robust companies that investors should keep even during market drops. With his 24 years in tech stock analysis, he emphasized that downturns often lead to recovery, underlining the need for a long-term outlook.

Responding to the current change in investor feelings towards AI shares, Ives acknowledged the rising uncertainty among investors and experts like those from Elliott Management, who question the profit-making potential of AI. Nevertheless, Ives reaffirmed his faith in the underlying story of AI, indicating that the market now seeks tangible outcomes instead of mere assurances.

As we move forward, Ives emphasized the significance of the forthcoming earnings statements from significant tech corporations, with a special focus on Nvidia. He pointed out that investor anticipation for Nvidia has eased somewhat lately, however, the interest in AI-focused products continues to be robust. Ives proposed that Nvidia’s upcoming earnings announcement could be one of the most scrutinized in recent times, considering the present market jitters and the crucial part AI plays in shaping the tech industry’s future.

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2024-08-05 16:36