By George Glover

Savvy investors ought to treat the tariff-fueled selloff as an opportunity to buy the dip in technology stocks, according to one well-known bull.

Wedbush analyst Dan Ives wrote in a research note published late Monday that it's a good time to snap up shares in some beaten-down names: chip designer Nvidia, iPhone maker Apple, electric-car manufacturer Tesla, IT giant Microsoft, and analytics-software company Palantir Technologies. All five racked up big gains after the launch of ChatGPT in late 2022 kicked off an AI boom, but have struggled this year amid tariff fears.

"We remain firmly bullish and believe tech stocks will ultimately make new all-time highs during the second half of 2025 despite a disaster panicked selloff to start the year," Ives said.

President Donald Trump's tariffs on Canada, Mexico and China have sparked a panic on Wall Street, with investors worried that the levies will drag down growth and spark a flare-up in inflation. Blue-chip tech names have been at the sharp end of the selloff.

Ives said Trump's trade policies were clearly "unnerving to many growth investors we speak with around the world," but added that the anxieties around tariffs haven't changed his longer term view that the U.S. is in the early stages of an artificial-intelligence revolution. He expects a $2 trillion AI capital spending blitz by Big Tech players to help stabilize the market in the long term.

"We clearly have misjudged the market reaction to the Trump Policy Bazooka to hit the markets this year. Our bullish calls on Tesla, Nvidia, and many of the Mag 7 have been upside down this year but our stock calls are not for the next few months...it's for where we see these tech names over the next 1, 3, and 5 years," Ives wrote.

Ives previously predicted that tech stocks would rise 25% in 2025 and Apple would be the first company to ever reach a market valuation of $4 trillion, swiftly followed by Nvidia and Microsoft.

Ives isn't the only analyst staying bullish. Fundstrat Global Advisors' head of research Tom Lee has also called the recent selloff overblown. He's arguing that the Federal Reserve could now resume its interest-rate cuts as early as May, which would help soothe recession fears.

The market will be hoping that the bulls have this one right.

Write to George Glover at george.glover@dowjones.com

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March 11, 2025 07:42 ET (11:42 GMT)

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