Dan Ives, Managing Director of Equity Research at Wedbush, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss his outlook for artificial intelligence and tech stocks.
Ives seeks to provide research on market trends to Wedbush’s private client presence. He states that today is one of the most exciting times of his 25-year career as a sell-side technology equity analyst. Today’s boom in artificial intelligence (AI) starts with an impact on chips and software that will eventually reach smartphones and consumer applications. It is still early in the cycle of AI investment. Ives compares today’s market to the 1996 boom in Internet stocks rather than the 1999 market and the coming bust.
The most obvious beneficiaries of AI are Nvidia, Microsoft, ServiceNow, and Oracle. Palantir is one of the best pure-play AI names in the market. Today, AI is all about big tech and large enterprises. Most advisors and consumers haven’t yet seen how AI will impact their daily lives. Many consumers will first encounter AI in 2025 as the iPhone 16 facilitates hundreds of AI-based applications. Investors should look for companies that will benefit as the second, third, and fourth derivatives of AI play out.
When advisors do use AI, it is important that they protect their customer data and intellectual property in a safe environment. Beyond AI, Ives sees interesting opportunities in cybersecurity, cloud computing, blockchain technology, and cryptocurrency.
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