Hedge fund veteran Dan Ives believes “armageddon” fears in one stock market sector have triggered a golden buying opportunity.
In a new CNBC interview, Ives argues that accelerating AI spending will create a multiplier effect across tech, benefiting software stocks that have taken a beating.
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“The spending is even going to be more accelerated than I think people thought coming into the year. So when you look at some of the armageddon fears that we’re seeing specifically in software, and I think some of these tech names, it’s way overblown. It’s a multiplier. I mean we’ve told on the show for every dollar spent on capex you have an essentially an 8 to 10 multiplier across the rest of tech infrastructure, energy, and that speaks to our view this is a deep seat type moment that’s a golden buying opportunity for the winners.”
Ives also says the market is wrongly treating the entire software sector as broken, overlooking core AI beneficiaries like Salesforce and ServiceNow.
“Look, is Adobe a potential loser? Is software names like UiPath, some of these other the pure play names? Yeah. But is Salesforce Service Now? No. I think Salesforce Service Now are going to be core parts of the play in the AI revolution, the use cases, because today it’s really only Palunteer that’s shown it. I just think right now the street is miscalculating the ripple effect that we’re going to see across tech.
And I think what you’re seeing here is obviously just a massive dislocation. I would say in my career it’s the most disconnected call that I’ve ever seen, specifically the software selloff where you’re essentially treating the sector like it’s a structurally broken sector.”
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