AI-related stocks traded lower this week. Tech analyst Dan Ives says the memory stock downturn underscores nervousness about the AI buildout and Chinese competition.
"It’s a jittery overall market," Ives said on Tuesday’s "CNBC Morning Call." "I think it’s way overdone."
Investors may need earnings season to calm those nerves, he added, citing accelerating deals. Current chip demand-to-supply is 13-to-1, and he expects that to show up in earnings over the coming weeks.
Instead of panicking, Ives said this is the "opportunity to own the winners.” Four stocks came to mind:
- Microsoft Corporation (NASDAQ:MSFT)
- Nvidia Corporation (NASDAQ:NVDA)
- Palantir Technologies (NASDAQ:PLTR)
- CrowdStrike Holdings (NASDAQ:CRWD)
"This AI revolution is in the third inning,” he added.
Another stock pick came when asked about Meta Platforms (NASDAQ:META) recent rollout of Muse, which Ives called "a game changer."
Ives said Meta has 3.6 billion users it can tap into.
After many investors counted Meta and CEO Mark Zuckerberg out, Ives argued the company now has an opportunity to catch up and monetize its user base.
Software Stocks to Watch
Ives’s other stock picks are in the software sector.
Ives said the SAASpocalypse was a fictional narrative and that software stocks could be in a renaissance, including his two picks: Salesforce Inc (NYSE:CRM) and ServiceNow (NYSE:NOW).
"Use cases are going to be led by software."
The market expert said software could outperform over the next two to four quarters and that investors need more exposure to the sector.
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