Dan Ives: I think software rips higher from here because of how oversold it is

Dan Ives said that today on Bloomberg Surveillance.

It seems like when I watch Bloomberg, most of the interviews that ask about the AI and software stocks keep saying that it is far too oversold and far too overexaggerated.

Mandeep Singh from Bloomberg Intelligence also reiterated the exact same thing yesterday saying that enterprises are unlikely to rewrite code for existing software that works very well already. For example, if your workplace uses Zoom, Slack, Teams, WebEx, a company is unlikely going to rebuild a corporate level messaging system or even a Microsoft Office copy from scratch in-house to replace their enterprise software.

I personally think this sell off is a result of overleverage and excessive risk taking resulting in margin calls and panic selling. That's also mixed in with previously high valuations before earnings could actually catch up. Given that it's been 3 months since the ATH made in late October and has corrected \~10% on major US tech ETFs (XLK, IYW), it might be nearing the end of this sell off in a matter of days to weeks.

What do you guys think?