The tech sell-off of the past fortnight has rattled even the most seasoned Nasdaq watchers, but Wedbush argues this is more a bout of nerves than a turning point.
In a punchy note, the broker calls the pullback a “mini panic moment” rather than the bursting of any bubble, despite the swirl of AI-bubble chatter, regulatory anxiety and the usual theatre of bearish tweets.
The backdrop has been jittery. Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) delivered what Wedbush describes as “off the charts” quarterly numbers yet still sold off the next day, a move that unsettled investors who have treated the stock as the market’s AI bellwether.
Add worries about China-related revenue restrictions, hand-wringing over the stability of OpenAI, and even a short-seller sideshow, and the recent tech wobble starts to look like classic late-cycle nerves rather than a change in fundamentals.
Wedbush’s point is that the fundamentals are still pointing one way. Cloud results from Microsoft, Amazon and Alphabet have been robust, and capital spending across Big Tech is accelerating sharply.
The note highlights that capex could climb from around $380 billion this year to as much as $550–600 billion in 2026, a wave of investment Wedbush sees as the engine of what it repeatedly calls the “AI Revolution”. Meta and other large platforms are flagged as the biggest contributors.
On the enterprise side, Palantir is singled out as the best barometer of real-world AI adoption, with US commercial growth “blowing away” expectations.
Snowflake Inc (NYSE:SNOW) and MongoDB Inc (NASDAQ:MDB) are expected to mirror that strength. Wedbush estimates that for every $1 spent on Nvidia hardware, another $8–10 flows into the rest of the ecosystem, a multiplier that helps explain why the broker remains so relaxed about the broader tech outlook.
Nvidia, unsurprisingly, sits at the centre of the thesis. The note is effusive about the company’s Blackwell chips, calling them the “new gold and oil in today’s world”, and argues that supply and demand remain stretched well into 2026.
Jensen Huang is described as having the “best perch” to judge enterprise appetite for AI spending... and, in Wedbush’s view, his latest commentary did not disappoint.
For all the colour, the underlying message is straightforward: the sector may be having a moment of agita, but the investment cycle is still building, not breaking.
Wedbush expects tech to rally through the rest of the year as investors refocus on the long glide path of AI-driven spending across both consumers and enterprises.
In other words, the note leans firmly against the panic. The pullback, it argues, is a twitch, not a turning point.