The US decision to implement 25% tariffs on Canada and Mexico and a proposed 20% tariff on China is likely be a "major pain" for consumers and the economy if the tariffs remain in place, Wedbush said in a Tuesday note.
Investors around the globe are moving into a "very nervous" phase especially regarding growth stocks as they try to analyze how the tariffs will affect the tech trade going forward, analysts led by Daniel Ives wrote.
"Our view is we are in the midst of the biggest tech transformation trade since the Industrial Revolution with AI and $2 trillion of AI Capex over the next 3 years," the analysts added.
The note said, however, that Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG, GOOGL), Amazon.com (AMZN), Palantir Technologies (PLTR), Salesforce (CRM), and Tesla (TSLA) are the likely winners of the AI revolution and that any weakness should be seen as a buying opportunity.
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