Micron Earnings Take on New Gravity With Market on Edge Over AI
Speakers
Dan Ives
— Managing Director, Wedbush Securities
Summary
Daniel Ives of Wedbush views the semiconductor slump as a buying opportunity, dismissing DeepSeek fears. He is bullish on Microsoft, calling it a penalty box stock with a $550 target, and predicts an 80% chance SpaceX acquires Tesla, supporting a long-term bullish view on the EV maker.
- Daniel Ives sees the chip sell-off as a temporary breather driven by exaggerated DeepSeek/Korea fears.
- He asserts US has a multi-decade lead over China in AI, making the recent AI fears fictional.
- Microsoft is viewed as a 'penalty box' stock disconnected from fundamentals, with a $550 target and expectations for capital returns.
- He notes the market is separating tech names; Microsoft must show Azure growth and execution.
- Ives assigns an 80% probability that SpaceX will acquire Tesla to create a unified AI ecosystem under Musk.
- Tesla's long-term thesis relies on autonomous robotaxi growth, which could prove bears wrong in 2-4 years.
- The AI revolution is spreading beyond chips into space, cybersecurity, and industrials like Caterpillar.
Ideas
AI chip sell-off is temporary breather.
The recent chip sell-off driven by Korean AI (DeepSeek) fears is nothing more than a temporary 'white knuckle moment' breather. The US holds a decisive lead over China in AI, making those fears 'fictional.' The AI revolution remains intact and the pullback is a buying opportunity.
MSFT undervalued, catalyst ahead.
Microsoft is a 'penalty box' stock because of its OpenAI association and Copilot stumbles, but it is disconnected from fundamentals. Azure growth remains strong, and management will likely boost buybacks or dividends. The stock is 'way disconnected' and should reach $550 as it shows execution.
Up Next
This Bloomberg Markets video, published June 24, 2026, features Dan Ives discussing SMH, MSFT, TSLA. 3 trade ideas extracted by AI with direction and confidence scoring.