Wedbush’s Ives Predicts AI’s Next Wave: Top 5 Stock Picks for 2026
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Wedbush Securities analyst Dan Ives believes teh current AI rally is far from over, predicting a notable multiplier effect across the tech sector as AI adoption accelerates. Ives estimates that for every dollar spent on Nvidia chips, a further $8-$10 will be generated across the broader technology landscape. While remaining bullish on Nvidia, he’s highlighted five stocks poised to benefit substantially from this continued growth, forecasting significant gains thru 2026. Here’s a breakdown of his top picks and the reasoning behind them.
The “Derivative of the AI Revolution”
Ives’ core thesis centers around the idea that the initial surge in AI investment, largely focused on hardware like Nvidia’s GPUs, is just the beginning. The real opportunity lies in the companies that will leverage this infrastructure to build and deploy AI-powered applications and services. He emphasizes that the growth potential isn’t limited to chipmakers; it extends to software, cloud services, and various other tech segments. https://www.cnbc.com/2024/05/28/wedbush-dan-ives-names-top-5-ai-stocks-excluding-nvidia.html
Ives’ Top 5 AI Stock Picks
Here’s a closer look at Ives’ top five AI picks, as of May 28, 2024, and the rationale behind each selection:
1. Microsoft (MSFT)
Ives believes Wall Street is underestimating the growth potential of Microsoft’s Azure cloud platform, particularly its AI capabilities. azure is a key competitor to Amazon Web Services (AWS) in the cloud market, and Microsoft is aggressively integrating AI services into its offerings. This includes incorporating OpenAI’s models (Microsoft is a major investor in OpenAI) into Azure, making it easier for businesses to build and deploy AI applications. As of May 28, 2024, Microsoft stock was up 15.6% year-to-date. https://www.microsoft.com/en-us/cloud
2. Apple (AAPL)
While Apple has been perceived as lagging in the AI race, Ives suggests the company is poised to accelerate its AI efforts. He predicts that triumphant AI monetization could add $75 to $100 per share to Apple’s value in the coming years. This could involve integrating AI features into existing products like iPhones and Macs, as well as developing new AI-powered services. As of May 28, 2024, Apple shares had risen 9.3% in 2024. https://www.apple.com/
3. Tesla (TSLA)
Ives anticipates a “monster year” for Tesla in 2026, driven by advancements in autonomous driving and robotics. He believes that as Tesla’s self-driving technology matures and the company expands its robotics initiatives (like Optimus, its humanoid robot), the market will begin to recognize the value of its AI investments. This increased valuation will be tied to the unlocking of AI potential within the company. Tesla shares were up 13.8% year-to-date as of May 28, 2024.https://www.tesla.com/
4. Palantir (PLTR)
Palantir, a data analytics company, is positioned to be a major player in the AI space. Ives believes the company’s strategic moves to remain at the forefront of AI growth could propel it to a trillion-dollar market capitalization. Palantir specializes in helping organizations analyze complex data sets, and its platforms are increasingly being used for AI-driven decision-making. palantir was the best-performing stock of the group, up 143.5% year-to-date as of May 28, 2024.https://www.palantir.com/
5. CrowdStrike (CRWD)
CrowdStrike is a cybersecurity firm that is increasingly leveraging AI to enhance its threat detection and response capabilities. ives notes that the company is gaining market share and expanding its product suite, making it a key player in the evolving cybersecurity landscape. He expects continued growth in both new and existing customer adoption over the next 12-18 months. CrowdStrike shares had gained 39.1% year-to-date as of May 28, 2