Dan Ives: Tech Stocks Are Experiencing a '1996 Moment,' Not a Bubble Like in 1999
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 10 2025
0mins
Should l Buy META?
Source: Benzinga
Market Outlook: Wedbush Securities analyst Dan Ives believes the recent pullback in Big Tech stocks is a buying opportunity, likening the current market conditions to a "1996 Moment" rather than a "1999 Moment" indicative of a dot-com bust.
AI Revolution: Ives emphasizes that the AI revolution is just beginning, with significant growth potential in global AI infrastructure led by major tech companies like Nvidia, Microsoft, and Amazon, despite ongoing U.S.-China trade tensions.
Investment Strategy: He advises long-term investors to view temporary market sell-offs as prime entry points to buy tech winners, recommending diversified tech ETFs such as QQQ, XLK, and IVES.
Long-Term Perspective: Ives stresses that the AI era is still in its early stages, and investors should focus on the long-term opportunities rather than being swayed by short-term market fluctuations.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 649.810
Low
655.15
Averages
824.71
High
1117
Current: 649.810
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Profitability: Meta anticipates Q1 2026 revenues between $53.5 billion and $56.5 billion, implying growth rates as high as 34%, and despite spending pressures, the company maintains strong cash flow and profitability metrics.
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- National AI Fund Launched: China launched a 60.06 billion yuan ($8.69 billion) national AI fund last year and initiated the 'AI+' program to integrate AI technology across its economy and society, further accelerating its technological development.
- Cost Advantage Emerges: By leveraging massive Huawei chip clusters and abundant low-cost energy, China is narrowing the gap with the U.S. in AI model development, making its low-cost tech offerings attractive to developing economies and potentially reshaping the global tech landscape.
- U.S. Investment Return Concerns: U.S. tech giants announced capital expenditures of up to $700 billion in AI, raising concerns about returns and leading to a $1 trillion loss in market caps, reflecting growing doubts about the U.S.'s competitive edge against China.
See More
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- Spending Overview: The five largest hyperscalers, including Amazon, Alphabet, Microsoft, Meta, and Oracle, are projected to budget over $700 billion by 2026, reflecting a strong demand for building AI data centers and driving growth in related sectors.
- Capital Expenditure Growth: Amazon plans to spend $200 billion in 2026, a 56% increase from $128.3 billion in 2025; Alphabet's spending is expected to reach $180 billion, with a staggering 97% year-over-year growth, significantly enhancing its market competitiveness.
- Surge in Chip Demand: These five companies are set to spend over $450 billion on GPUs, CPUs, and other AI accelerator chips in 2026, creating substantial market opportunities for chipmakers, particularly for leading firms like Taiwan Semiconductor Manufacturing Company (TSMC).
- Long-Term Growth Outlook: TSMC has raised its annual revenue growth forecast for 2024-2029 from 20% to 25%, and with the rapid increase in AI chip demand, the potential for gross margin and profit growth in the coming years is substantial, making it a valuable investment despite its stock reaching all-time highs.
See More
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- Economic Growth Boost: Taiwan's economy experienced a 70% surge in exports in January, the fastest pace in 16 years, driven almost entirely by AI hardware, further solidifying TSM's market position and profitability.
- Bullish Wall Street Outlook: DA Davidson recently initiated coverage on TSM with a Buy rating and a $450 price target, suggesting significant upside from current levels, reflecting strong market confidence in its future growth.
- Strong Financial Performance: TSM's stock has risen 14.63% year-to-date, while the Nasdaq 100 was down 1.88% during the same period, demonstrating its robust performance amid increased Big Tech spending, further solidifying its leadership in the high-end node market.
See More
