tech

Rani Molla8/20/25

Ives: “Skeptics of Tech Rally Will Be Proven Wrong (Again)”

The S&P 500 fell yesterday, pulled down by Big Tech stocks as traders dumped AI names. Wedbush Securities analyst Dan Ives says they’re wrong.

“Skeptics of Tech Rally Will Be Proven Wrong (Again),” Ives headlined an analyst note this morning, telling investors that worrying over sky-high valuations and tariffs risks is missing the forest for the trees.

“This tech bull market in our view is being fueled by the biggest transformational tech spending cycle in the last 40 years... the AI Revolution,” he said. “We are still in the early days of the AI Revolution as the use cases are just starting to massively expand as more companies recognize the value creation being driven by a handful of tech companies led by the Godfather of AI Jensen and Nvidia.” When Nvidia reports earnings next week, Ives expects to see that “demand to supply is 10:1 for Nvidia’s golden chips.”

Ives expects the tech bull cycle to be “well intact” for at least two or three more years. “We view tech sell-offs like yesterday as opportunities to own the core winners,” he wrote.

More Tech

Apple Store in China

Apple reports Q4 earnings and revenue slightly above Wall Street estimates

The iPhone maker reported its FY 25 fourth-quarter earnings Thursday.

Tesla just recalled its beleaguered Cybertruck for the 10th time since the vehicle was introduced two years ago. This time the company recalled about 6,000 of the “apocalypse-proof” vehicles due to what the National Highway Traffic Safety Administration says is an improperly installed “optional off-road light bar accessory” that could become disconnected from the windshield while driving, and could “create a road hazard for following motorists and increase their risk of a collision.”

CEO Elon Musk once said he could sell up to 500,000 of the stainless steel behemoths a year. In the first three quarters of this year, the company has sold only about 16,000.

Microsoft: Forget what we said, we are going to keep spending on capex

Last quarter, the company offered guidance that its capex spending would be lower in the second half of the fiscal year. Yesterday it said spending would go up.

Microsoft Celebrates Its 50th Anniversary With Copilot AI Event

tech

Analysts lower Meta price targets after social media giant says AI capex will keep climbing

Meta may have posted record revenue Wednesday but the stock is deeply in the red in the wake of its third-quarter earnings report, after the social media company said that its capital expenditure on AI would continue to rise.

The earnings prompted a number of analysts to lower their price targets or downgrade the stock.

RBC Capital lowered its price target to $810 from $840. Bank of America Securities lowered its price target to $810 from $900. Barclays, JPMorgan, Deutsche Bank, and Wells Fargo also lowered their price targets on the company.

Earlier today, Benchmark downgraded its rating to a “hold” from a “buy.” Oppenheimer downgraded the company to “perform” from “outperform,” saying the “significant investment in Superintelligence despite unknown revenue opportunity mirrors 2021/2022 Metaverse spending.” Ouch.

Capex marks the spot

Big Tech capex approaches $100 billion and Dan Ives loves it

AI spending shows no signs of flagging.

Meta, Microsoft, Alphabet and Amazon capex

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.

©2025 Sherwood Media, LLC