Nvidia, Palantir, Microsoft Dragged Into AI Scare -- Here's Why Wedbush Says Relax

Wedbush on Friday called the recent tech pullback a buying opportunity, saying market jitters are short-lived as investors position for an extended wave of AI spending.

Analysts led by Daniel Ives said uneven trading followed strong results from firms such as Palantir Technologies PLTR and renewed debate over Nvidia's NVDA China exposure.

The team highlighted robust cloud demand at Microsoft MSFT, Amazon AMZN and Alphabet GOOGL and rising capital spending across big tech.

Wedbush projects industry capex could climb to roughly $550 billion to $600 billion in 2026 from about $380 billion this year, a step that would accelerate AI deployment.

Analysts acknowledged valuation concerns and headline risks, including social-media-driven shorts and worries about export controls, but described the recent selling as a short-lived panic rather than a structural shift.

They pointed to solid guidance from Cisco and constructive signals from Meta Platforms (META) as evidence that AI spending remains the key market narrative.

Looking ahead, Wedbush said upcoming Nvidia results will be a critical validation point for the sector and could influence sector momentum into year-end.