Wedbush analyst Dan Ives said technology stocks are set for a “very strong” second half of the year, with second-quarter results expected to mark the start of a broader AI-driven growth cycle.

Wedbush named Nvidia (NVDA), Meta Platforms (META), Microsoft (MSFT), Palantir (PLTR), and Tesla (TSLA) as its top five tech picks heading into the second-quarter earnings.

Analyst Dan Ives said Wednesday that the technology stocks are set for a “very strong” second half of the year, with second-quarter (Q2) results expected to mark the start of a broader AI-driven growth cycle.

“Tech stocks will have a very strong second half of the year, kicking off with a robust 2Q earnings season on the doorstep… With the AI revolution tailwind now accelerating across semis, software, consumer,” Ives wrote in a post on X.

Palantir’s stock edged 0.35% higher in pre-market trade on Wednesday. The shares have gained more than 58% in the last three months, and nearly doubled in value this year so far. On Stocktwits, retail sentiment around the company has remained in ‘bullish’ territory over the last three months. The company has not yet announced when it plans to release its second-quarter earnings.

Ives recently raised his price target on Palantir’s stock to $160 from $140, calling it the “Lionel Messi of AI” and stating that the company is on the “golden path to become the next Oracle.”

Aside from Palantir, which has seen an influx of government contracts during President Donald Trump’s second term in office, all of the stocks belong to the Magnificent Seven (MAGS). Meta’s and Tesla’s stocks edged 0.3% higher in pre-market trade on Wednesday. Meanwhile, shares of Microsoft and Nvidia were in the red.

Meta’s stock has gained 33% over the last three months and 20% year-to-date. On Stocktwits, retail sentiment around the Mark Zuckerberg-owned enterprise improved to ‘neutral’ territory from ‘bearish’ three months ago. Its second-quarter earnings are scheduled for July 30. Wall Street is expecting to see earnings per share (EPS) of $5.84 on revenue of $44.63 billion.

Meanwhile, Tesla’s stock has gained 24% over the past three months but has lost 20% so far this year. Retail sentiment around the EV-maker has remained in the ‘bullish’ zone as compared to three months ago. The Elon Musk-led company is scheduled to report its earnings on July 23, with Wall Street forecasting EPS of $0.40 and revenue of $22.44 billion. 

In pre-market trade on Wednesday, Microsoft’s stock slipped 0.24%. The shares have gained 30% over the past three months and 18% since the beginning of the year. Retail sentiment on Stocktwits around the company has improved to ‘neutral’ from ‘bearish’ territory three months ago. 

The company is scheduled to announce its earnings on July 30. Analysts estimate it will report earnings of $3.37 per share and revenue of around $73.78 billion. 

Shares of the most valuable company in the world, Nvidia, edged 0.15% lower in early morning trade on Wednesday, after rallying more than 4% to hit an all-time high of $172.40 during the previous session. On Stocktwits, retail sentiment around the AI bellwether also dipped to ‘bullish’ from ‘extremely bullish’ territory in the past 24 hours. 

Over the past three months, the shares have gained 53% while retail sentiment has improved to ‘bullish’ from ‘bearish’ during the same period. Nvidia’s stock is up 25% year-to-date, and the company is scheduled to announce its earnings on August 27. Wall Street expects EPS of $1 on revenue of $45.64 billion.

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