Investors should still have faith in the booming tech sector’s bull run, despite how Friday’s disappointing jobs report for July prompted a major sell-off.

That’s according to a note that Wedbush Securities analyst Dan Ives published Friday, contradicting investors’ fears.

“The perfect storm panicked tech sell-off has now gained steam after the weaker jobs report this morning fuels the R word fears and worries the Fed is now too late in its cutting cycle with tech stocks in the center of this Category 5 storm sell-off,” Ives said.

Wedbush is “getting inbounds from investors around the world” asking whether this tech bull market and historic run for tech stocks is over. 

“It’s NOT in our view and this is just a white knuckle moment in a multi-year bull run for tech stocks that needs hand holding,” he added.

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The tech sector is in “the early innings” of a $1 trillion spending cycle on artificial intelligence that will usher in a fourth industrial revolution that will fuel accelerated growth across the industry, Ives said. “We focus on tech spending and the winners that will be front and center in this massive AI tech build out that is still in the second inning of a nine-inning game.”

In making his AI case, Ives pointed to Apple Inc.’s (NASDAQ:AAPL) bullish outlook, success of Microsoft Corporation’s (NASDAQ:MSFT) Azure cloud platform and Amazon.com, Inc.’s (NASDAQ:AMZN) Amazon Web Services and strong earnings from Nvidia Corporation (NASDAQ:NVDA), ServiceNow, Inc. (NYSE:NOW) and Advanced Micro Devices, Inc. (NASDAQ:AMD).

He said AI is mimicking the “1995 moment” of the Internet rally and is poised for “a new build out” that the tech sector has not seen since the Internet began.

“This is not a bubble and tech vendors will start to show the monetization/use cases/ growth over the next 6-9 months to validate the valuations,” he wrote.

“In a nutshell… This is not the time to panic on the tech trade, its the time to go bargain hunting for our top tech names after this panic sell-off.”

Price Action: Major tech companies trended down into Friday’s late-afternoon trading in the wake of the latest jobs data.

• Microsoft declined 2.73% to $405.71
• Nvidia fell 3.05% to $105.88
• Alphabet Inc. (NASDAQ:GOOG) slipped 2.64% to $167.90.
• Meta Platforms, Inc. (NASDAQ:META) dropped 1.97% to $487.91

Apple has had an up day, however, gaining 1.90% to $222.51 as of late-afternoon trading on Friday.

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