Wedbush analyst Dan Ives has dismissed the recent DeepSeek-driven sell-off in AI stocks as a "tech AI head fake," calling it a prime buying opportunity for long-term investors.
Why Ives is Unfazed by DeepSeek
- Not a Real Threat: Ives argues that DeepSeek’s low-cost AI model does not change the long-term AI investment thesis.
- Falling AI Costs are Good: He expects AI model costs to decline, ultimately benefiting computing power and AI adoption.
- Comparison to an "Elementary School Project": DeepSeek may appear groundbreaking, but underlying assistance—such as access to high-end GPUs—makes its claims less disruptive.
Bullish AI Outlook
- $2 Trillion in AI Capex: Ives projects massive AI investments over the next three years.
- No Change in Enterprise Spending: Major companies remain committed to AI budgets, showing no hesitation despite DeepSeek’s debut.
- Key AI Players Remain Strong: Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN) are well-positioned to maintain dominance.
Investors tracking AI spending and financial performance can use the Advanced DCF API for insights into company valuations and AI investment trends.
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