Following the Labour Day weekend, when the market reopened, tech stocks were heavily pressured in an overall risk-off environment. Wedbush analysts, meanwhile, seem unfazed by the most recent sell-off.

The investment group emphasised the significance of Nvidia's earnings and conference call from last week as a turning point in bolstering the AI bull argument.

They think that demand for AI is far outpacing supply, notwithstanding the subdued first response to Nvidia's good earnings and forecast. Despite some recessionary fears, experts anticipate no significant barriers to the AI sector's ongoing growth as the year comes to a conclusion, with concerns concerning Blackwell delays being resolved.

Wedbush maintains its positive position on tech stocks for the upcoming year by estimating that there is a $8–$10 multiplier throughout the tech industry for every $1 spent on an Nvidia GPU processor.

"Looking back, Nvidia has revolutionised the technology and worldwide scene as its GPUs are now the new gold standard in the IT industry, driving the AI Revolution and holding a monopoly for the time being," Wedbush's group added.

Tuesday saw a 9.5% decline in Nvidia shares, the worst one-day fall in market value for an American firm, wiping out $279 billion in capitalisation. This happened as investor excitement for AI waned in the face of dismal economic data and a widespread market selloff.

(Sources: investing.com, reuters.com)