Dan Ives Calls $3 Trillion Tech Selloff a Buying Opportunity
Wedbush's Dan Ives argues Big Tech is deeply oversold after losing nearly $3 trillion in market cap on AI spending fears.
Wedbush Securities' Global Head of Technology Research Dan Ives stepped in front of the cameras on CNBC this month with a contrarian take: the sweeping sell-off in mega-cap technology stocks is not a warning sign but an entry point. Nearly $3 trillion in combined market capitalization has vanished from the sector in June, driven largely by growing investor skepticism over the scale and payoff timeline of artificial intelligence capital expenditure programs. Ives pushed back firmly on that narrative, calling the affected names "way oversold."
Microsoft was among the stocks Ives specifically highlighted as a name he believes the market has mispriced. His argument rests on a fundamental disagreement with the prevailing bearish thesis — that AI infrastructure spending is too large, too early, and too uncertain to justify current valuations. Ives, by contrast, appears to view the current capex cycle as a durable, long-term investment whose returns the market is discounting too aggressively in the short term.
Read more DCC Plc Draws Regulatory Disclosure Filing Under Form 8.3 →
The Wedbush analyst's position reflects a broader debate now fracturing Wall Street. On one side sit investors who worry that hyperscaler spending on data centers, chips, and AI infrastructure is outpacing any realistic near-term monetization path. On the other are bulls like Ives who believe the commercial AI wave is still in its earliest innings, and that companies building the foundation now will generate outsized returns once enterprise adoption accelerates meaningfully.
What makes this moment analytically significant is the speed of the drawdown. Losing nearly $3 trillion in sector value within a single month — absent a macro shock like a recession signal or a Federal Reserve surprise — suggests sentiment-driven selling rather than a fundamental re-rating. That distinction matters enormously for investors trying to separate cyclical noise from structural deterioration. If Ives is right, the current environment rewards discipline over panic.
Continue reading at Yahoo.
