Daniel Ives, head of equity research at Wedbush Securities, has pushed back against growing concerns of a bubble in the artificial intelligence chip market.
The analyst dismissed recent market turbulence, including a trading halt on the Korean stock exchange, as a temporary setback rather than a structural break in the AI investment thesis.
Ives characterized the current correction as a buying opportunity for long-term investors.
He expressed skepticism toward narratives suggesting the AI sector is fundamentally overheated, maintaining that the underlying demand for semiconductor infrastructure remains robust despite short-term price fluctuations.
The comments come as the broader technology sector faces scrutiny over valuation levels.
While some market participants have pointed to recent volatility in Asian markets as a warning sign, Ives argues that the long-term growth trajectory for AI-related hardware has not been compromised.