"This AI revolution is just beginning today, and we believe tech stocks and the AI winners should be bought, given our view that this is Year 3 of what will be a 10-year cycle of this AI revolution build-out," he writes. "We expect tech stocks to be up another 20% in 2026 as this next stage of the AI revolution hits its stride."
Many growth-heavy investors might have felt it when the Nasdaq 100 slipped close to 8% as part of a tech-driven correction. Though the market has recovered more than half of the ground lost since before the November dip in AI stocks, there are still quite a few opportunities out there in the tech wreckage for contrarians to pick up. Undoubtedly, we've enjoyed a swift market rally going into Thanksgiving, and for that, investors can give thanks.
Tech is weighing on markets, with Nvidia ( NASDAQ: NVDA) down about $7 a share on news that Meta ( NASDAQ: META) is considering using Google ( NASDAQ: GOOG) AI chips. In fact, according to The Information, as reported by CNBC, "Meta is considering using Google's tensor processing units (TPUs) in its data centers in 2027. Meta may also rent TPUs from Google's cloud unit next year, the publication reported."
If you're heavily invested in tech stocks, you've surely heard concerns that we may be approaching (or in) a bubble. Similar to the dot-com bubble in the late 1990s and the housing bubble in the early 2000s, tech stocks are on fire, and some bears believe they are overheated today. Is that true? I think the concern is overstated, but it's also important to acknowledge that markets sometimes drop. Corrections are nothing new and are, in fact, part of the heartbeat of the stock market.
"I think there's a bubble but there again I always think there's a bubble," Edwards told Bloomberg's Merryn Somerset Webb in a recent appearance on her podcast Merryn Talks Money, noting that during each cycle, there is always a "very plausible narrative, very compelling." However, he was unwavering in his conclusion: "it will end in tears, that much I'm sure of."
Stocks rose on Wall Street Wednesday as more U.S. companies turn in their latest quarterly reports and several economic updates shed some light on the U.S. economy. The S&P 500 rose 0.5%. The Dow Jones Industrial Average rose 62 points, or 0.1%, as of 11:35 a.m. Eastern time. The Nasdaq composite rose 0.8%. The gains mark a reversal from the prior day's dip as big technology stocks once again lead the broader market. Nvidia rose 1.6% and Google's parent, Alphabet, jumped 2.4%.
The broad index of large-cap companies in the S&P 500 closed flat, but the tech-heavy Nasdaq 100 rose 0.55%. Tech stocks were led by Nvidia, which was up 3%, and now has a market cap of more than $5 trillion. (Its stock is down 0.7% premarket this morning, suggesting that some traders are taking their overnight gains.) To put that in perspective, Nvidia's market cap is bigger than the GDP of every G7 country except the U.S. and Japan.
Analysts said the impact should be moderate, given that the fees apply only to new applications, but warned that a constrained supply of skilled workers in the U.S. may push wages higher and squeeze margins. Companies including Microsoft, Amazon, Alphabet and Goldman Sachs were among those that sent urgent emails to their employees with travel advisories.
When I saw a man walking down Prince Street in canary yellow pants, a bright blue Aviator Nation sweatshirt, custom sneakers, and a hat that said "GOAT," I knew my wait was over. I was meeting up with Dan Ives, who isn't just a well-known tech analyst and major Tesla bull, but also something of a fashion icon. CNBC is used to guys in Brooks Brothers,but when Ives is on, it's Lilly Pulitzer blazers and lots of hot pink.
Shares of Google parent Alphabet ( GOOGL) climbed late Tuesday after a federal judge issued a ruling on remedies in the U.S. government's antitrust lawsuit involving the tech giant's internet search business. Google stock had been expected to fall after the ruling, but rose instead. Meanwhile, Apple ( AAPL) stock also rose. Judge Amit Mehta of the U.S. District Court of the District of Columbia ruled that Google can keep its Chrome browser.
There are now almost 500 AI unicorns - companies valued at over $1 billion - worth a total of roughly $2.7 trillion, enough to do some serious damage to the economy if things don't go well. But for investors, that cash represents a dream: that AI will someday do more than generate video essays explaining that Nubian giants built the pyramids, and become a major financial driver.
Tech stocks could remain under pressure after they led Wall Street lower on Tuesday, with the Nasdaq dropping 1.4% and the S&P 500 slipping 0.6%. Losses were widespread among chipmakers, where Nvidia slid 3.5%, AMD fell more than 5%, and Broadcom lost more than 3%. Palantir was the weakest S&P 500 performer, plunging 9%. The selloff reflected investor caution ahead of the Federal Reserve's annual Jackson Hole symposium, where Chair Jerome Powell is due to speak on Friday.
Palantir's revenues soared nearly 50% to almost $1 billion and net income increased 144%, boosting investor confidence in AI’s role in tech growth and job reduction.
