Wedbush remains committed to U.S. tech stocks: Recent pullbacks provide a good buying opportunity

Zhitong
2025.03.12 02:08
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Wedbush firmly believes that the recent pullback in U.S. tech stocks is a short-term phenomenon, expecting that leading companies in the artificial intelligence sector will reach new highs in the second half of 2025. Although the Nasdaq index has fallen 9.71% this year, Wedbush analysts consider the current downward pressure to be a "golden opportunity" to buy tech stocks. Preferred stocks include NVIDIA, Apple, Tesla, Microsoft, and Palantir. Analysts point out that policy uncertainty will stabilize in the coming months, which is favorable for tech stocks

According to Zhitong Finance APP, despite the recent sell-off of technology stocks in the US market, Wedbush believes this is only a short-term phenomenon and states that the stock prices of leading companies in the artificial intelligence sector are still expected to reach historical highs in the second half of 2025. The firm's preferred stocks include NVIDIA (NVDA.US), Apple (AAPL.US), Tesla (TSLA.US), Microsoft (MSFT.US), and Palantir (PLTR.US).

Data shows that the Nasdaq index, which is dominated by technology stocks, has fallen 9.71% so far this year, with NVIDIA down over 19%, Apple down nearly 12%, Tesla down nearly 43%, Microsoft down nearly 10%, while Palantir has performed relatively well, rising over 3%.

Wedbush analysts, led by Daniel Ives, stated in an investor report: "After a historic bull market led by the artificial intelligence revolution over the past two years, we are now seeing investor concerns due to Trump's tariff actions, fears of economic recession, and worries about growth in the technology sector, which have led investors to withdraw from technology stocks."

Daniel Ives added: "We clearly misjudged the market's reaction to Trump's policies this year. Our optimistic expectations for Tesla, NVIDIA, and other 'Seven Giants of US Stocks' have changed, but our bullish outlook on these stocks is not for the next few months, but for the next 1, 3, and 5 years." Analysts believe that the uncertainty of policies in the coming months will stabilize, and the downward pressure during this period is a "golden opportunity" to buy technology stocks.

It is worth mentioning that Wedbush had previously predicted at the end of last year that under Trump's election, reduced regulatory pressure would drive technology stocks up by 25% in 2025. The departure of Lina Khan, chair of the Federal Trade Commission (FTC), and a more favorable environment for artificial intelligence from the US government are also positive factors for large technology companies next year.

The firm's analysts stated at that time: "We believe that driven by the artificial intelligence revolution, along with over $2 trillion in artificial intelligence capital expenditure growth over the next three years, technology stocks will perform strongly in 2025." They emphasized that while concerns about Federal Reserve policies, tensions in US-China relations, and overvaluation may lead to market volatility, these declines are expected to provide buying opportunities for investors. The firm also emphasized that one of its investment strategy focuses is to stick to core technology stocks

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