Wedbush Securities is anticipating that the latest flare-up in US-China tensions will settle quickly, with analysts describing the recent market sell-off as a chance to buy into technology leaders.
Analyst Dan Ives said investor fears of a renewed trade war following China’s rare earth export restrictions are overdone, and highlighted signs pointing toward diplomatic cooling.
Ives, in a research note, said Trump’s follow-up comments and expected talks with President Xi suggest “the bark will be way worse than the bite,” and that the November 1 tariff threat will likely be removed.
Wedbush argues these periods of volatility are “buying opportunities” within the ongoing AI boom, with the US–China dispute unlikely to derail structural growth in semiconductors and software.
The investment firm reiterated its bullish stance, saying the sector could rally another 10% into year-end. Its top picks remain Microsoft Corp (NASDAQ:MSFT), Nvidia Corp (NASDAQ:NVDA, ETR:NVD), Apple Inc (NASDAQ:AAPL, ETR:APC), Palantir Technologies Inc (NYSE:PLTR), Tesla Inc (NASDAQ:TSLA), and Alphabet Inc (NASDAQ:GOOG) - names Ives says represent the “winners of the 4th Industrial Revolution.”