Ross Gerber of investment firm Gerber Kawasaki told investors to look past the recent technology selloff on Thursday, dismissing fears of an AI bubble, saying the sector remained a long-term opportunity.
AI Is ‘No Fad’
In a post on X, Gerber said stocks were in “sell mode” just as earnings season got underway, with investors raising doubts about valuations after the recent pullback.
Gerber dismissed concerns that the weakness reflected an AI bubble, saying there was “no bubble talk” despite growing skepticism around the sector.
He added that AI remained a long-term investment theme, encouraging investors to “think long term” and saying there were “nice values out there.”
Tech Stocks Lead Market Decline
Technology shares led Wall Street lower on Thursday, with the Nasdaq falling 1.47% as weakness in chipmakers and speculative growth stocks outweighed gains in defensive sectors and smaller-cap companies.
The selloff came despite upbeat results from Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM), with semiconductor stocks remaining under pressure amid concerns that AI hyperscalers could slow capital spending.
AI Bubble Debate
Investors have grown increasingly concerned that the AI-driven rally may be losing momentum following weeks of weakness in semiconductor and technology stocks.
However, SoftBank Group (OTC: SFTBY) CEO Masayoshi Son earlier this week called fears of an AI investment bubble “foolish” and “backward,” as he believed the technology would transform the global economy.
According to Bank of America’s data, Amazon.com Inc. (NASDAQ:AMZN), Google‘s parent Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Meta Platforms Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT) and Oracle Corp. (NYSE:ORCL) are on track to spend about $1.8 trillion on AI infrastructure over 2026 and 2027, pushing their combined free cash flow into negative territory for the first time on record.
Investor Ray Dalio has drawn parallels between the current AI boom and the dot-com bubble, while ‘Big Short’ investor Michael Burry has taken bearish positions against AI-related companies, including NVIDIA Corp. (NASDAQ:NVDA), Tesla Inc. (NASDAQ:TSLA) and Micron Technology Inc. (NASDAQ:MU).
Gerber had called Burry’s short position against Micron a “joke” as the chipmaker was in an “epic position” to benefit from AI-driven demand, while on Thursday he said the pullback the stock has seen over the past few days was like Christmas coming early.
Price Action: Micron fell 5.65% to close at $853.20 on Thursday and extended its losses by another 7.95% in after-hours trading.
Benzinga edge rankings indicate MU has a Momentum score in the 99th percentile and a Growth score in the 84th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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