Dan Ives Says Semiconductor Sell-Off Is ‘Way Overdone’ As AI Spending Fears Rattle NVDA, MU, SKHY, SNDK

In an interview with CNBC, he said data center deals were accelerating and that the demand to supply ratio stands at 13:1.

• Ives stated that there was “some nervousness” on memory stocks, but that the selloff is “way overdone.”
• He acknowledged that 5% to 10% of data centers might not get built.
• Ives identified Microsoft, Nvidia, Palantir and CrowdStrike among his favorite AI-related stocks.

Semiconductor stocks extended their slide in morning trading on Tuesday as AI chip competition and AI spending concerns continued to weigh on the sector; however, according to Yorkville partner Dan Ives, the sell-off is “way overdone.”

“I think there’s some nervousness on the memory stocks,” said Ives in an interview with CNBC. “I continue to think it’s way overdone relative to the sell-off.”

SK Hynix (SKHY) was among the top trending tickers on Stocktwits at the time of writing. The stock fell more than 5% in pre-market trade, on track to extend its decline for a sixth straight session and hit an over one-month low. On Stocktwits, retail sentiment around the shares remained in ‘bullish’ territory over the past day. 

The VanEck Semiconductor ETF (SMH) dropped as much as 1.4% in pre-market trade, with Nvidia (NVDA) edging 0.8% lower. Investors were also watching Advanced Micro (AMD), Micron (MU), SanDisk (SNDK), Applied Materials (AMAT) and others for their continued slide.

Why Dan Ives Says AI Chip Stocks Have Fallen Too Far

According to Ives, the overall market is “jittery” in terms of worries about the AI built built and “some sort of slowdown.” He contended that around 5% to 10% of data centers may not end up happening, but noted that deals are accelerating and the demand supply ratio is 13:1.

“It’s going to show up in earnings relative to the hyperscalers, relative to chip names,” Ives stated. In his opinion, the upcoming earnings season should help calm investors' nerves.

MSFT, NVDA Stocks Lead Dan Ives’ AI Stock Picks

Ives pegged Microsoft (MSFT), Nvidia, Palantir (PLTR) and CrowdStrike (CRWD) as his favorites among the AI trade.

MSFT stock edged 0.18% higher in pre-market trade, while PLTR stock and CRWD shares both slipped around 0.5%. Microsoft bucked the broader sell off after Barclays raised its price target on the stock to $600 from $512, reiterating an 'Overweight' rating, as part of its third quarter (Q3) earnings preview for software stocks.

On Meta (META), Ives reiterated that Muse was a “game changer.” According to Ives, the Zuckerberg-led company will continue to play “catch up” to Anthropic and OpenAI, which will only speed up the “AI arms race.”

META stock also edged around 0.5% lower in pre-market trade.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<