Tech Selloff Doesn't Spook Dan Ives for Halloween: Here Are His 6 AI Stock Picks

What happened

Dan Ives, an analyst at Yorkville, said the recent tech selloff does not change his positive view on artificial intelligence stocks and said the AI trade may still be early. He noted Wall Street added $866 billion to 2027 hyperscaler capital spending estimates.

Confirmed

Global impact / market context

Bigger planned spending by hyperscalers, which are large cloud providers, can become revenue for chipmakers and software firms, but often with a delay of about two years. That lag means reported profits may trail spending plans, so investors must judge whether current stock prices already reflect future sales.

Analyst inference

Software stocks fell sharply before Halloween, and some companies reported slower growth as AI changes their business. Ives expects AI spending to support software and cybersecurity through 2027, and he favors buying selected stocks after the decline rather than avoiding the sector entirely.

Analyst inference

What to watch

1. ServiceNow raised its full-year AI revenue target for a second time, but management’s tone on AI demand softened, similar to 2024, according to Ives. Confirmed
2. Ives proposes buying selected software and cybersecurity stocks during this selloff, and lists Nvidia in chips and Microsoft among hyperscalers as top AI picks. Proposed
3. Watch whether cautious AI commentary from software firms is followed within four quarters by larger reported AI revenue, as Ives says happened to companies that were cautious in 2024. Analyst inference

Evidence

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