Dan Ives, a hedge fund veteran, believes that “armageddon’ fears have created a gold buying opportunity in one sector of the stock market.
Ives, in a recent CNBC interview, argues that increasing AI spending creates a multiplier impact across the tech industry, benefiting stocks of software that have been hit hard.
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The spending will be even more rapid than people anticipated at the beginning of this year. When you consider the fears of Armageddon that are being expressed in particular software and some of the tech names I believe, they’re overblown. This is a multiplier. We’ve said on the show that for every dollar you spend on capex, there’s an essentially 8-10 multiplier in the other tech infrastructure and energy. This speaks to our belief that this is an important moment, a great buying opportunity, for those who win .”
Ives says that the software industry is being treated as broken by the market, ignoring the core AI beneficiaries such as Salesforce and ServiceNow.
Adobe is a possible loser. Are software names such as UiPath and some of the other names pure-play names? Yeah. What about Salesforce Service Now, though? No. Salesforce Service Now will be a core part of the AI revolution and the use cases. Today, it is only Palunteer who has shown this. Just think about it. I think that he’s miscalculating how much ripple effect we will see in tech.
In my career, I would say that this is the most disconnected call that I’ve ever seen. In my career, I think it is the most disjointed call I have ever heard. Specifically the selloff of software where the industry was treated as if it were structurally damaged .”
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The post A ‘Golden Opportunity,’ Has Emerged in One Sector of Stocks amid Armageddon Market Worries, says Hedge Fund Veteran Dan Ives could be updated as new information becomes available.
