Nvidia, Palantir: This Is Not a Tech Meltdown. It's a Twitch

Silicon Valley didn’t implode. It just had a bit of a wobble.

Over the past two weeks, tech stocks have taken a nasty tumble. Even Nvidia, the poster child of the artificial intelligence gold rush, got clipped... after delivering what Wedbush called “off the charts” quarterly numbers. That’s the sort of thing that rattles investors who thought they’d found the market’s true north.

But don’t cue the funeral dirge just yet.

According to Wedbush, this isn’t the sound of a bubble bursting. It’s more like the market clearing its throat. The broker dubs it a “mini panic moment”, the financial equivalent of someone flinching at a firework, mistaking it for incoming artillery. There’s a lot of noise: loose talk about AI froth, regulatory sabre-rattling, and a couple of bearish sideshows dragging sentiment lower. But underneath the headlines, the fundamentals are still pulsing.

Big Tech is still spending like it believes the AI party is just getting started. Capital expenditure across the major platforms—Meta, Microsoft, Amazon, Alphabet—is on track to soar from $380 billion this year to up to $600 billion by 2026. That’s not a slowdown. That’s full-throttle investment in compute power, data infrastructure, and AI scaling.

And that cash isn’t just going into racks and wires. Wedbush points to Palantir as a canary in the enterprise AI coalmine, reporting U.S. commercial growth that “blew away” forecasts. Snowflake and MongoDB are flagged as next in line to ride the same wave. The broker even throws in a tidy little stat: for every $1 spent on Nvidia GPUs, $8–10 flows through the rest of the ecosystem. That’s a multiplier worth watching.

Nvidia, naturally, remains the crown jewel. Wedbush gets lyrical about its new Blackwell chips, calling them “the new gold and oil” of the AI economy. Supply is tight. Demand is hotter than a server room in July. And CEO Jensen Huang, whom the note casts as having the “best perch” in the industry, sounded every bit the AI evangelist during the latest earnings call.

The takeaway? Ignore the hand-wringing. This isn’t a cyclical peak. It’s an awkward middle chapter in a much longer growth story. Investors got spooked, sure. But the AI spending curve is steep, sticky, and nowhere near cresting.

So no, the sell-off doesn’t mean the game is up. In Wedbush’s view, this was a twitch. Not a turning point.