Is the AI investment frenzy rekindling? Buyers are now using real money to guard the "AI bull market narrative" at lower prices.

In late 2022, the well-known Wall Street investment firm Wedbush accurately predicted a bull market in US stocks and accurately predicted multiple times that this bull market would continue for a long period of time. The firm recently stated that in the tech stock bull market since 2023, driven by the AI investment frenzy, various short-term disturbances are normal, and the firm firmly predicts that the US tech stocks (based on the Nasdaq 100 index) still have around 10% upside for the remainder of the year as investors urgently seek to position themselves in this unprecedented AI revolution through a "buy on the dip" strategy. At the same time, many Wall Street giants including Goldman Sachs Group, Inc., Morgan Stanley, and UBS Group AG have rejected the AI bubble theory, believing that the AI-driven bull market is far from over. Senior analysts from several Wall Street Financial Institutions, Inc. also stated that the AI bubble theory, hawkish stance of the Federal Reserve, or other factors causing short-term pullbacks are major investment opportunities for investors to buy in the low points of this unprecedented AI boom. "Just last week was a very tense week for tech investors, as there were significant sharp declines in tech stalwarts (such as Microsoft Corporation, Palantir, NVIDIA Corporation, and Broadcom Inc.), which raised some short-term concerns in this tech bull market," said a team of analysts led by senior analyst Daniel Ives at Wedbush. Analysts pointed out that last week, Palantir Technologies (PLTR.US) actually delivered extremely impressive and above-expectation explosive growth data... but the stock price sharply fell the next day, highlighting market concerns about the AI bubble theory and the increasing valuation of Palantir. However, stocks like Palantir, experiencing more than a 10% decline, present the best opportunity for positioning, as historical data proves that performance is key, and short-term factors do not hinder the long-term bull market trajectory of the stock. Analysts further expressed that several factors have stimulated bearish sentiments regarding the "AI bubble", along with concerns about the revenue of "AI chip leader" NVIDIA Corporation (NVDA.US) being cut off in the Chinese market, and bearish commentary on OpenAI being "too big to fail"... coupled with Michael Burry, the "Big Short" who successfully predicted the 2007 US subprime crisis, releasing bearish tweets on NVIDIA Corporation and Palantir, driving the bearish views on tech stocks related to the "AI bubble" to continue to rise. Senior analyst Ives and his team at Wedbush stated, "In short, we believe that this is just a brief 'White Knuckle Moment' for global tech stocks, as we believe that with investors seeking active participation in this unprecedented AI revolution, and the AI investment second, third, and fourth-order effects unfolding on consumers and global businesses, tech stocks will rise by another 8% to 10% for the remainder of the year, on top of the already over 20% increase this year." Analysts noted that the most important conclusion of this year's third-quarter global tech earnings season is the strong revenue data from Microsoft Corporation, Amazon.com, Inc., and Alphabet's Alphabet Inc. Class C from their cloud computing business, as well as the significant increase in AI-related capital expenditures for 2026, led by Meta Platforms, the parent company of Facebook, and other tech stalwarts. These earnings emphasize a long-term bull market narrative for AI: the demand for computing power associated with generative AI and AI agents is increasing, and the revenue prospects associated with these AI systems are becoming more positive. With a massive influx of buy orders at low points, will the AI investment frenzy sweep in again? Senior analyst Ives and his team at Wedbush believe that with the comprehensive deployment of the next stage of AI spending, the overall capital expenditures of large tech companies could increase significantly from around $380 billion this year to close to $550 billion to $600 billion by 2026. Ives and his team added that Palantir is the "best demand barometer" for enterprise AI applications, with strong growth in its US commercial business far exceeding the expectations of Wall Street analysts, indicating that more and more businesses and government organizations are accelerating their investments and deployment plans for "AI + Everything", which will also be significantly reflected in the strong performance of Snowflake (SNOW.US) and MongoDB (MDB.US). "This is an unparalleled global AI arms race, driven by the strong momentum of the next AI chapter being the continued feverish AI spending of large tech companies, and this spending frenzy shows no signs of slowing down as it progresses towards 2026... we believe that this is a huge positive and validation moment for the long logic of the AI revolution, despite the anxiety surrounding the AI bubble in the past few weeks, this does not prevent funds from continuing to choose to buy on the dip," Ives and his team stated. As AI chip leader AMD and SSD storage giant SanDisk announce incredibly strong performance under the AI frenzy, and Wall Street financial giants like Goldman Sachs Group, Inc. and UBS Group AG release reports refuting the "AI bubble," concerns about the AI bubble in the market have significantly diminished, driving Asian tech giants closely related to AI like Advantest, Tokyo Electron, SoftBank Group, and SK Hynix to surge on Monday, highlighting the rush of real money into these AI computing leaders. After the market opened on Monday, leading AI computing companies like NVIDIA Corporation, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, and Micron Technologies are continuing their strong bullish trend in the morning session. Citigroup on Wall Street recently stated that a short-term market weakness/downward pullback may be within the general expectations of investors, and the "fundamental narrative of artificial intelligence driving the long-term bull market in stocks" remains intact, which could create significant buying opportunities during the pullback. Drew Pettit, Senior US Equity Strategist at CitiGroup, highlighted significant investment opportunities for buying on the dip with AI Beta (AI ). Pettit specifically named the hottest stocks in the AI computing industry - NVIDIA Corporation (NVDA.US) and ETF targets focused on the entire semiconductor sector (such as PSI, SMH, SOXX, and XSD), while also mentioning AI Amazon.com, Inc. (AMZN.US), calling it the "super empowerer" of AI technology. Amazon.com, Inc. recently released strong revenue data for its AWS cloud computing business, and OpenAI recently announced a blockbuster seven-year, $38 billion AI computing agreement with Amazon.com, Inc.'s global cloud computing services provider AWS (Amazon Web Services), where OpenAI will obtain the rights to use hundreds of thousands of NVIDIA Corporation AI GPU devices through AWS, including NVIDIA Corporation's GB200 and GB300 AI GPUs. Michael Wilson, Chief Strategist at Morgan Stanley, pointed out that there are "clear signs" that US corporate profits driven by AI are significantly rebounding, with US companies enjoying stronger pricing power. He also noted that profit estimate revisions have bottomed out, with a significant turning point where the number of analysts downgrading estimates is greater than those upgrading. Regarding the AI bubble, Wall Street analysts recently collectively published reports criticizing this pessimistic view, with some analysts believing that even if there is currently an "AI bubble" in the market, it is still in the earliest stages of bubble formation, with quite a long time before experiencing a bear market crash like the one in the 2000 "dot-com bubble burst". Goldman Sachs Group, Inc. stated that the investment cycle associated with AI infrastructure still has a lot of room for significant advancement, likening the current AI spending frenzy and the soaring tech stock valuations to the early stages of the late 1990s tech boom, rather than being at a speculative peak. In a new report, Goldman Sachs Group, Inc. pointed out, "From multiple indicators, the current AI-related investment frenzy is more similar to the tech stock investment frenzy of 1997 to 1998, rather than the pessimistic state of the bubble beginning to burst in 1999 or 2000". The fervor investment period from 1997 to 1998 was a period of infrastructure construction in the internet age, with advancements in productivity systems and infrastructure ecology beginning to emerge, but market speculation had not yet formed.