Wedbush Analyst Urges Investors to Buy Dips in 5 Tech Stocks After 'Software Armageddon'

Dan Ives says the recent tech stock sell-off is an opportunity to buy high-potential companies at a discount.

Published on Feb. 4, 2026

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Wedbush analyst and AI mega-bull Dan Ives is encouraging investors to take advantage of the recent tech stock sell-off, which he calls a 'software armageddon' and 'garage sale,' by buying five leading software and cloud companies at discounted prices. Ives believes the market is overreacting to concerns about AI disruption and that Microsoft, Palantir, Snowflake, Salesforce, and CrowdStrike remain well-positioned to benefit from the AI revolution in the long run.

Why it matters

The tech sector has faced significant volatility in recent weeks amid investor concerns about the potential impact of AI on software companies. Ives' bullish stance on these five stocks suggests he believes the sell-off has created an opportunity for investors to buy into high-growth tech names at attractive valuations, despite the near-term headwinds.

The details

Ives and his team at Wedbush believe the market is 'baking in a doomsday scenario' for software companies that is 'extremely overblown.' They argue that while AI may present near-term challenges, the five stocks they recommend - Microsoft, Palantir, Snowflake, Salesforce, and CrowdStrike - are well-positioned to capitalize on the long-term opportunities presented by the AI revolution. The analysts see these companies as 'core winners' that will accelerate their cloud and AI monetization efforts in the coming years.

  • The tech stock sell-off occurred this week, with the worst declines seen on Wednesday, February 5, 2026.

The players

Dan Ives

A Wedbush analyst and self-described 'AI mega-bull' who has spent years urging investors to buy tech stocks during market downturns.

Microsoft Corp.

One of the world's largest software companies, with growing ties to the AI industry through its Azure cloud platform and partnership with OpenAI.

Palantir Technologies, Inc.

A data analytics and AI software company that sells to governments and enterprises, and has drawn renewed investor attention for its commercial market push.

Snowflake, Inc.

A cloud-based data storage and analytics company that Ives believes is well-positioned to serve as the 'trusted layer' between enterprise data and external AI models.

Salesforce, Inc.

A customer relationship management software company that has been working to integrate AI tools into its core products.

CrowdStrike Holdings, Inc.

A leading cloud-native cybersecurity firm that Ives believes remains well-positioned to secure workloads and operations as AI usage increases.

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What they’re saying

“We believe the market is baking in a doomsday scenario for software companies in the near-term, which we believe is extremely overblown, as many customers won't be willing to put their data at risk to capitalize on AI implementation strategies until there is less risk with these migration projects.”

— Dan Ives, Wedbush Analyst (Wedbush)

“Is AI a headwind in the near-term for software? YES!...however, the magnitude of this software sell-off is a major head scratcher and is factoring in an Armageddon scenario for the sector that is far from reality in our view.”

— Dan Ives, Wedbush Analyst (Wedbush)

What’s next

Investors will be closely watching the tech sector in the coming weeks and months to see if the recent sell-off was an overreaction or a sign of more turbulence ahead as the AI revolution continues to unfold.

The takeaway

Ives' bullish stance on these five tech stocks suggests he believes the recent market volatility has created a buying opportunity for investors willing to look past the near-term AI-related headwinds and focus on the long-term growth potential of these leading software and cloud companies.