Wedbush stated that the current tariff dispute surrounding Greenland will lead to market weakness, but simultaneously offers investors a prime opportunity to position themselves in leading technology stocks.
An analyst team led by Dan Ives noted that due to widespread concerns over the U.S.-Europe tariff dispute concerning Greenland, U.S. stock futures showed weakness.
The Ives team stated, "We are on the ground in Davos this week... As Trump arrives at the forum tomorrow to meet with tech giants and numerous political leaders, this tariff dispute has become a significant underlying concern. However, we believe, similar to the past year, this will ultimately be 'much ado about nothing'—as negotiations progress, tensions between the Trump administration and EU leaders will eventually ease, and the tariff threats will gradually subside."
Analysts pointed out that, affected by rising risk-off sentiment, artificial intelligence (AI) concept stocks are bearing the brunt, with the overall technology sector under pressure, yet this precisely presents an excellent timing for investors to position for leading tech stocks in 2026 and beyond.
The team further added that, based on research findings, tech giants are set for a strong fourth-quarter earnings season in the coming weeks.
Capital expenditure from U.S. tech giants this year is projected to reach a massive $550 billion, a huge investment that is propelling the AI revolution into a new cycle of growth.
The Ives team emphasized that the U.S. has currently overtaken China in the tech race, a first in 30 years.
Core U.S. tech companies like NVIDIA (NVDA.US), Microsoft (MSFT.US), Palantir (PLTR.US), Google (GOOGL.US), AMD (AMD.US), and Amazon (AMZN.US) are becoming the core drivers of this AI revolution wave.
The Ives team stated, "If the market weakens in early trading, we recommend increasing positions in several IVES AI 30 component stocks, including NVIDIA, Microsoft, Palantir, CrowdStrike (CRWD.US), Nebius (NBIS.US), Apple (AAPL.US), Palo Alto Networks (PANW.US), Google, and Tesla (TSLA.US). This war of words between the Trump administration and the EU actually gives investors another chance to board leading tech stocks. Despite persistent doomsaying from bears, in our view, the AI revolution is still in its early stages, and this week's political drama will not alter the major trend of the Fourth Industrial Revolution entering a new phase by 2026."
Reportedly, Trump plans to attend the World Economic Forum in Davos on Wednesday, meet with global CEOs, deliver a special speech, and later attend a CEO reception.
However, the specific agenda has not yet been publicly released.
The market generally believes that policy shifts by the Trump administration, including threats to impose additional tariffs on European countries, will be a core topic of this forum.
Separate reports indicate that Greenland-related discussion items have been added to the previously finalized meeting agenda.
U.S. Treasury Secretary Besant has appealed to European countries, hoping they will not retaliate against the tariff measures imposed by the U.S. over the Greenland issue.
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