According to renowned Wedbush analyst Dan Ives, the recent tech sell-off that resulted in a sharp decline in the Nasdaq index will only be a temporary setback for tech companies. Ives believes that the sell-off, driven by disappointing performance from Alphabet (Google) and Tesla, was a reaction to the massive investments in cloud and artificial intelligence (AI) technologies, which are driving the 4th Industrial Revolution.

In a note to investors on Thursday, Ives acknowledged that the sell-off had caused anxiety among traders due to the significant rise in tech stocks over the past 18 months. However, he expressed optimism that the market would quickly recover as the broader tech sector's results and commentary are digested during the upcoming earnings season.

Ives emphasized that the decline in tech stocks should be seen as a temporary market correction rather than a sign of a long-term trend. His team argues that the recent sell-off provides an opportunity for investors to capitalize on the AI tidal wave of spending, which is expected to fuel the growth of tech companies in the coming months.

Despite the overall decline in the tech sector, there was already a sign of recovery for Tesla, whose stock prices rose by 2% during morning trading on Thursday. Unfortunately, Alphabet's stock experienced a further decline, adding to the overall uncertainty in the market.

While it is difficult to predict the exact timeline for the recovery of the broader tech sector, Ives believes that investors should have faith in the potential of AI and the long-term growth prospects of tech companies. He suggests that the sell-off is merely a temporary pause, and that the market will soon resume its bullish run.

In conclusion, the tech sell-off that rattled the Nasdaq index is expected to be short-lived, according to Wedbush analyst Dan Ives. He remains optimistic about the future of the tech sector and believes that the recent decline represents an opportunity for investors to benefit from the ongoing AI revolution. As the market digests the upcoming earnings season, it is anticipated that tech stocks will rebound and resume their upward trajectory.