The time to bottom out has come! Investment banker Wade Bush: Selling technology stocks is actually a good buying opportunity, and the AI arms race will drive a rebound by the end of the year.

Investment bank Wade Bush Securities stated that after another very difficult and cruel trading day for tech stock investors, this tech stock sell-off is actually a buying opportunity. Lead by analyst Daniel Evers, analysts said, "For tech stock investors, yesterday was again a very difficult and cruel day because of the risk-averse rise in Tesla, Inc. (TSLA.US), Microsoft Corporation (MSFT.US), Palantir (PLTR.US), NVIDIA Corporation (NVDA.US) and other AI tech leaders, bringing some short-term concerns to this tech bull market." The analysts added that a few weeks ago during the earnings season, Palantir reported amazing growth data far surpassing Wall Street expectations, but the stock price plummeted the next day, leading to a "heart-pounding moment" for tech stocks. Evers and his team stated, "This has heightened concerns surrounding the 'AI bubble theory' among the bears, as well as worries about NVIDIA Corporation's revenue being cut off in China, and discussions about 'too big to fail' OpenAI...as well as Michael Burry's bearish tweets adding to the chaos. In short, we believe this is just a short-lived minor panic for tech stocks, as we believe that with investors seeking to participate in the AI revolution and the second, third, and fourth-round derivative effects currently happening in the consumer and enterprise space, tech stocks will see a significant rise for the rest of the year." The analysts pointed out that the most important takeaway from the third-quarter tech earnings season was the strong cloud business data released by Microsoft Corporation (MSFT.US), Amazon.com, Inc. (AMZNJ.US), and Alphabet (GOOGL.US), as well as the significant capital expenditure growth leading up to 2026 by Meta platform companies and other tech giants. Analysts believe that as AI trading enters the next stage, tech giants' capital expenditures may increase from approximately $380 billion this year to $550-600 billion by 2026. Evers and his team stated, "This is an AI arms race, with tech giants' spending driving the next stage of growth, and this trend will not slow down until 2026. The optimistic quarterly performance and guidance announced by Cisco Systems, Inc. this week is another positive data point...we believe this is a huge positive factor and validation moment for the bullish case for the AI revolution." Analysts believe that NVIDIA Corporation's earnings announcement next week will be another important validation moment for the AI revolution and will serve as a positive catalyst for tech stocks until the end of the year, as investors continue to underestimate the scale and scope of AI spending.