Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTHillary RemySat, June 27, 2026 at 5:07 AM GMT+2 4 min readDan Ives of Wedbush Securities has a specific name for what is happening to tech stocks right now. In a note published June 26, he called it a "Twilight Zone market," Seeking Alpha reported, and the phrase is more specific than it sounds.Microsoft (MSFT), Nvidia (NVDA), Meta Platforms (META), and Palantir (PLTR) have all sold off sharply in recent weeks. At the same time, Micron Technology (MU), which supplies memory chips to the AI infrastructure those same companies are building, just reported blowout earnings and hit fresh highs.Ives thinks investors have run out of patience at a specific moment in a much longer cycle. The AI story, in his reading, is still intact.Why Dan Ives is calling this a "Twilight Zone" for tech stocksWedbush's note traced the disconnect to two specific concerns, Benzinga reported. The first is the lag between Big Tech's massive capital spending and any visible payoff in revenue. Microsoft and Meta, in particular, are in a six- to 12-month window where data center and compute buildouts are scaling up, but the monetization wave investors are waiting for has not yet arrived.Ives put it directly in the note. "We are in an 'air pocket stage' right now where the $700 billion of Big Tech cap-ex this year is fueling the AI buildout… and tech investors are growing increasingly frustrated by the patience needed around Microsoft and Meta in particular seeing the fruits of their labor," Benzinga reported.More Wall Street:HSBC doubles down on stock market message for 2026Citi quietly resets S&P 500 price target for the rest of 2026Jim Cramer has a stark message on the stock market for 2026The second concern is rising compute and memory costs and whether they could force enterprises to slow their AI buildouts.Apple (AAPL) announced price increases the day before the Wedbush note landed, sending a negative jolt through the market and feeding wider worries about whether neoclouds and hyperscalers are caught in a spending cycle without adequate pricing power to match it.Wedbush expects those cost pressures to ease as supply catches up. But it acknowledges that the timing creates short-term pain for the companies absorbing the bills right now.What Wedbush sees as the buying opportunity in tech and AI stocksIves framed the current situation as year three of a 10-year AI buildout and compared it to the construction of the Las Vegas Strip in the 1950s, when enormous capital went in long before the economic returns became visible.Wedbush's view is that the AI cycle is at the same inflection point. Investors who sold hotels in 1955 because the returns had not yet materialized were early, not right.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info