Dan Ives Calls $3 Trillion Tech Selloff a Buying Opportunity
Wedbush's Dan Ives argues AI capex fears are overblown and that Big Tech names are deeply oversold after a brutal June.
Wall Street's technology bulls are not retreating quietly. Dan Ives, Wedbush Securities' Global Head of Technology Research, appeared on CNBC this month to push back against a market narrative that has wiped nearly $3 trillion in combined market capitalization from major tech companies in June alone. The culprit, according to the prevailing bearish view, is mounting skepticism around artificial intelligence capital expenditure — the fear that the industry is spending too aggressively on AI infrastructure without a clear, near-term return on that investment.
Ives disagrees sharply with that read. In his framing, the selloff reflects a misreading of the AI buildout's trajectory rather than a genuine deterioration in business fundamentals. He characterized leading names — explicitly citing Microsoft among them — as "way oversold," language that signals he sees the price declines as emotionally driven rather than anchored in any meaningful revision to earnings power or long-term competitive positioning. For Ives, the capex being deployed today is the foundation of a monetization wave that markets are prematurely discounting.
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The analytical tension here is real and worth unpacking. AI skeptics argue that hyperscaler spending on data centers, chips, and model development is outpacing any identifiable revenue stream, making the current valuations difficult to justify even after the correction. Bulls like Ives counter that this mirrors historical moments — cloud computing's early innings, for instance — when the market consistently underestimated how quickly enterprise adoption would follow infrastructure investment. The debate is ultimately a disagreement about timing, not destination.
What makes this moment significant is the scale of the reset. A $3 trillion drawdown in a single month is not noise; it reflects a genuine shift in sentiment among institutional investors who had previously been willing to pay a premium for AI optionality. Whether that sentiment shift proves prescient or premature will depend heavily on the earnings guidance tech companies deliver in coming quarters, particularly any signals around AI product revenue conversion. Ives is betting the guidance will vindicate the bulls — and that patient investors who buy into the weakness will be rewarded.
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