Hedge fund veteran Dan Ives believes ‘armageddon’ fears have created a golden buying opportunity in one stock market sector.
In a new CNBC interview, Ives says argues that accelerating AI spending will create a multiplier effect across the tech sector, benefiting software stocks that have taken a hit.
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“Spending is going to accelerate even faster than I think people thought this year. So if you look at some of the Armageddon fears that we’re seeing specifically in software, and I think some of these tech names, that’s way overblown. It’s a multiplier. I mean, we talked about on the show that for every dollar spent on capital investment, you essentially have an 8 to 10 multiplier for the rest of the tech infrastructure, energy, and that speaks to our view that this is a deeply sitting-like moment that is a golden buying opportunity for the winners.”
Ives also says the market is wrongly viewing the entire software sector as broken, overlooking key AI beneficiaries like Salesforce and ServiceNow.
“Look, is Adobe a potential loser? Are software names like UiPath and some of these other pure play names? Yes. But is Salesforce Service Now? No. I think Salesforce Service Now is going to be a core part of the game in the AI revolution, the use cases, because today it’s really only Palunteer showing this. I just think the Street is now misjudging the ripple effect that we’re going to see in the technology.
And I think what you’re seeing here is clearly just a massive disruption. I would say this is the most disjointed call I have ever seen in my career, especially the software sell-off where you are essentially treating the industry as if it is a structurally broken industry.”
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