Wedbush: The AI narrative remains unchanged, ceasefire or push technology stocks to rebound from "oversold" levels.

Investment bank Wedbush said that, affected by the Iran ceasefire agreement, the "Seven Tech Titans" including NVIDIA Corporation (NVDA.US), Apple Inc. (AAPL.US), Amazon.com, Inc. (AMZN.US), Tesla, Inc. (TSLA.US), Meta (META.US), Alphabet (GOOGL.US), and Microsoft Corporation (MSFT.US) as well as all tech stocks, could potentially see a return to a "risk-on" environment. In a report to clients, analysts at the company wrote, "With the news of the Iran ceasefire emerging overnight, we believe this is a significant positive for the overall market, and risk appetite is now expected to return to the market. We firmly believe that the tense political backdrop of the past few months has created an 'oversold' tech environment for the 'Seven Tech Titans', software stocks, and many tech winners in the AI revolution." After further analysis, analysts pointed out that the sell-off in software stocks has been "excessive" as many companies are integrating artificial intelligence into their tech stacks rather than replacing existing products and services. The bank stated, "We also note that investors are concerned that Anthropic/OpenAI and other AI industry leaders will change their mission and become the next phase of enterprise software infrastructure. However, after communicating with many CIOs in the industry in recent weeks, we believe this idea is too far-fetched, as revenue generation will remain centered around partnerships in AI workflows. We continue to believe that the bottoming out of software trades may be a thing of the past. In our view, the sell-off performance of Microsoft Corporation, Salesforce, Inc., and ServiceNow is severely disconnected from their future AI monetization opportunities."