Wedbush is urging investors to see the recent tech stock sell-off as a strategic buying opportunity within a long-term AI bull run. Despite market volatility impacting giants like Microsoft and Meta, the firm maintains that the core AI trend is strong, with significant buildouts underway.
The analysis highlights a temporary “air pocket” due to heavy capital expenditure on AI infrastructure, with monetization expected to follow. Wedbush anticipates that current anxieties over costs and buildouts will resolve, presenting a favorable outlook for tech and AI leaders.
Wedbush Brushes Off Tech Sell-Off as Buying Chance in Multi-Year AI Bull Run
Published: 11:04 AM EDT, June 26, 2026
Wedbush analysts are advising investors to view the recent sharp sell-off in leading technology stocks not as a sign of weakness in the artificial intelligence sector, but as a prime opportunity to buy into what they describe as a multi-year AI bull run. Despite significant selling pressure on major tech players, the firm believes the underlying AI trend remains robust.
Core companies driving the AI revolution, including Microsoft Corp (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOG), Palantir Technologies Inc (NYSE:PLTR), Oracle Corp (NYSE:ORCL), Nvidia Corp (NASDAQ:NVDA), Amazon.com Inc (NASDAQ:AMZN), and Meta Platforms Inc (NASDAQ:META), have experienced considerable declines. Wedbush likens the current market sentiment to a "Twilight Zone market" for some of the sector's giants, even as beneficiaries like memory chipmakers, such as Micron Technology Inc (NASDAQ:MU), are seeing gains.
The firm attributes the disconnect to two primary concerns. Firstly, there's a lag between the substantial capital expenditures by Big Tech on AI infrastructure—estimated at $700 billion for the current year—and the realization of revenue from these investments. Wedbush characterizes this as an "air pocket stage" where buildouts are intensifying, but monetization is yet to fully materialize, particularly for companies like Microsoft and Meta, which are in a critical 6-to-12 month window for data center and compute expansion.
Secondly, rising compute and memory costs are a point of concern, with the potential to slow down enterprise AI buildouts. While recent price increases from companies like Apple Inc (NASDAQ:AAPL) have added to market jitters, Wedbush anticipates these costs will ease within the coming year. The firm draws parallels to the development of the Las Vegas strip in the 1950s, suggesting that current anxieties will subside as AI hardware, deployments, and enterprise use cases scale up.
Wedbush concludes that the current market turmoil is creating valuable disconnects and presents significant buying opportunities for technology and AI stocks within a multi-year bull market that still has substantial room for growth.
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