The analyst said that AI is at an inflection point now and that it is about the second, third, and fourth-order derivatives playing out from here on.
- Underscoring his bullish outlook on AI, Ives said the technology is now entering the monetization phase.
- He added that it’s not just about Big Tech stocks this year; other players in the industry stand to benefit as well.
- Ives also stated that Tesla is one of the two best plays in physical AI, with the other being Nvidia.
Dan Ives, Global Head of Tech Research at Wedbush Securities, on Friday reportedly said that tech stocks could surge by 20% to 25% in 2026.
During an interview with Bloomberg, Ives said that AI is at an inflection point now and added that it is about the second, third, and fourth-order derivatives playing out from here on.
“Heading into 2026 investors are both excited and nervous about the AI Revolution… 2026 is an inflection point year for the AI revolution,” Ives said.
Next Phase Of AI
Underscoring his bullish outlook on AI, Ives said the technology is now entering the monetization phase. He added that it’s not just about Big Tech stocks this year; other players in the industry stand to benefit as well.
“It’s a prove it year, but that actually makes me more bullish because now we go into the next phase of AI. I think tech stocks are up 20%, 25% in 2026, but it’s not just Big Tech, but second, third, and fourth derivatives playing out,” he said in the interview.
The analyst also added that Nvidia Corp. (NVDA) CEO Jensen Huang’s keynote speech on January 5 will be important as it will set the tone for what to expect in AI this year.
Ives On Tesla
Ives also stated that Tesla is one of the two best plays in physical AI, with the other being Nvidia. “This is an autonomous chapter now, coming to Tesla. You see Musk right now… wartime CEO. That’s the focus when it comes to AI,” he said.
On companies’ AI monetization plans, Ives said humanoid robotics, autonomous systems, and embedded AI devices will be among the most important areas to watch this year.
The analyst also maintained his optimism regarding the company following Tesla’s lower-than-expected fourth-quarter (Q4) deliveries. “Street will view this as demand stabilizing. All focus is autonomous,” he said.
Wedbush’s Top AI Stocks For 2026
Ives listed his top AI stock picks for 2026 in a previous note, according to a Barron’s report. While he maintained his bullish outlook for Nvidia, Ives focused on other players in the segment, which he expects to do well this year:
Microsoft Corp. (MSFT)
Ives believes Wall Street is underestimating the Azure growth story, amid growing demand for AI infrastructure.
MSFT stock is up 13% over the past 12 months.
Apple Inc. (AAPL)
The tech bull noted that while Apple has pursued a “head-scratching” strategy in 2025 when it comes to AI, the company has the world’s biggest installed base of consumers. “The time is now for Apple to accelerate its AI efforts,” Ives said.
AAPL stock is up 11% over the past 12 months.
Tesla Inc. (TSLA)
The analyst believes Tesla’s Cybercab will be the “golden goose” for the EV giant, helping it reach a $2 trillion market capitalization this year.
TSLA stock is up 11% over the past 12 months.
Palantir Technologies Inc. (PLTR)
Ives expects Palantir’s commercial segment revenue to take off and that the company could have a trillion-dollar valuation in the next two to three years.
PLTR stock is up 11% over the past 12 months.
CrowdStrike Holdings Inc. (CRWD)
CrowdStrike is one of Ives’ “derivative” beneficiaries, with the analyst believing that the company’s growth potential is being underestimated.
CRWD stock is up 11% over the past 12 months.
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