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Tech giants are not going to slash their AI spending plans, bullish tech analyst says

Tech giants defy AI spending cuts despite market volatility, analyst insists

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The story so far

Coverage highlights that companies like Microsoft and Oracle are expected to continue funding AI initiatives, with Ives describing current stock valuations as oversold and due for reversal in the coming months. Financial outlets including 24/7 Wall St., TradingView, and Yahoo Finance emphasize Ives’ bullish stance, framing AI-driven stocks as undervalued opportunities.

Fortune and Proactive Investors note scrutiny ahead of Q2 earnings, though no concrete spending cuts have been announced. The narrative contrasts with broader market sentiment, where AI-related stocks are trading like ‘bear market names.’ Watch for Q2 earnings reports from Microsoft and Oracle, which could clarify whether AI expenditures remain unchanged or if adjustments are made under pressure.

Analysts’ confidence in sustained spending may hinge on revenue growth tied to AI projects, particularly in cloud and enterprise sectors.

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The obvious questions

Are tech giants actually cutting AI budgets?

Coverage does not yet specify any confirmed cuts, but Wedbush notes scrutiny ahead of Q2 earnings.

Which companies are most bullish on AI spending?

Analyst Dan Ives highlights Microsoft (MSFT) and Oracle (ORCL) as firms unlikely to slash AI investments.

How long until a market reversal is expected?

Ives predicts a potential reversal in stock valuations within the next 6–9 months.

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