As Trump, Xi trade shots, 'buy tech on sell-off,' Wedbush says

[Global connection]
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Amid the back and forth between President Trump and President Xi Jinping over rare earth metals, Wedbush Securities believes investors should “buy tech” on the sell-off.

“After a relatively calm few months and improving relations between the US and China, this step up in tensions has created a white-knuckle moment for the markets, with tech stocks under major pressure today,” Wedbush analyst Dan Ives wrote in a note to clients. “As we have navigated this drama since April, we continue to believe the bark will likely be worse than bite this time around as cooler heads prevail. This is all a game of high stakes poker going on between the US and China in this AI Revolution, as we are also seeing more scrutiny in Beijing around Nvidia's (NASDAQ:NVDA [https://seekingalpha.com/symbol/NVDA]) golden chips.”

He continued: “These moments we view as buying opportunities to own the winners in semis, software, Big Tech, and the AI future as in our view these tensions will not bubble up into a much more tense time vs. the nervous period of time we saw in April. That said, our view of tech stocks remains firmly bullish, but we will continue to have moments like this that create some panic and nervousness among tech investors.”

Given that mindset, Ives mentioned the large tech companies, such as Nvidia, Microsoft (NASDAQ:MSFT [https://seekingalpha.com/symbol/MSFT]), Palantir (NASDAQ:PLTR [https://seekingalpha.com/symbol/PLTR]), Meta (NASDAQ:META [https://seekingalpha.com/symbol/META]), Alphabet (NASDAQ:GOOG [https://seekingalpha.com/symbol/GOOG]) (NASDAQ:GOOGL [https://seekingalpha.com/symbol/GOOGL]) and Amazon (NASDAQ:AMZN [https://seekingalpha.com/symbol/AMZN]) are companies that are benefiting from the AI Industrial Revolution.

“Sell-offs like today we encourage investors to buy the tech winners and not head for elevators despite this war of words between Trump and Xi,” Ives added.

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