Panic selling may actually be the best long-term opportunity? Wedbush: Now is not the time for panic, the tech stock wave may still continue
US tech stocks fell sharply on Monday, with Wedbush Securities stating that the tech stock wave may continue to rise under the drive of artificial intelligence. Wedbush Securities analysts believe that now is the best time to buy top tech stocks. They reiterated that similar "mass sell-off" periods in the past have created the best long-term opportunities for holding companies like Microsoft, Apple, Google, and others. In addition, Wedbush predicts a "soft landing" for the global economy, with the Federal Reserve entering a "significant rate-cutting cycle," and emphasizes the strong prospects for AI and cloud computing companies. Overall, the panic selling in the tech stock market is actually the best long-term investment opportunity
According to the Zhitong Finance and Economics APP, driven by multiple factors, US technology stocks plummeted significantly on Monday. Some reasons include the sharp drop in the Japanese Nikkei Index, Berkshire Hathaway (BRK-A.US) cutting its stake in Apple (AAPL.US), and escalating concerns about economic recession. However, Wedbush Securities stated that the wave of technology stocks may continue to rise under the impetus of artificial intelligence.
Analysts at Wedbush Securities, led by Dan Ives, wrote in an investor report, "In short, now is not the time to panic about technology stocks. After this panic selling, it's time to buy top technology stocks."
The company reiterated that similar "massive sell-off" periods in the past have created the "best long-term opportunities" for holding companies such as Microsoft (MSFT.US), Apple (AAPL.US), Nvidia (NVDA.US), Salesforce (CRM.US), Oracle (ORCL.US), Palo Alto Networks (PANW.US), Tesla (TSLA.US), Alphabet (GOOGL.US), and Amazon (AMZN.US).
Furthermore, Wedbush stated that even if the yen carry trade is unwound, they still believe that the global economy will experience a "soft landing," and the Federal Reserve will enter a "significant rate-cutting cycle" in the next 18 months.
Wedbush added, "This earnings season confirms our bullish thesis and we have conducted on-the-ground research on large-scale cloud computing companies (Microsoft, Google, Amazon). With the artificial intelligence revolution entering the next growth phase, the prospects for cloud computing of these companies are strong."
"While we are well aware of the market's concerns about weakening US consumer data (and softening Amazon consumer data), the Fed is too late, the hard landing theory is back... We are focused on technology spending and the winners who will be at the forefront and center of this large-scale artificial intelligence technology buildout, which is still in the second inning of a nine-inning game."