WEDBUSH: TECH SELLOFF OVERDONE AS AI SPENDING SURGES The recent pullback in tech stocks is overdone, according to Wedbush Securities, which says the artificial intelligence investment cycle is still in its early innings. The firm estimates the market is in year three of a decade-long AI buildout, with 2026 marking a key inflection point. It expects large tech companies to spend about $650 billion in capex in 2026, alongside growing government and corporate AI investment. Recent volatility has hit major names despite strong earnings from Alphabet, Meta Platforms and Palantir Technologies. Wedbush views the weakness as short-term risk aversion, not a shift in long-term fundamentals. The firm also argues that declines in Salesforce, ServiceNow and Microsoft fail to reflect their strategic roles in the AI ecosystem. While AI is reshaping enterprise software budgets, Wedbush says fears of rapid displacement are overstated, and broader AI adoption should support sector growth.(*Walter Bloomberg)