The recent pullback in tech has rattled nerves, but so far it looks more like a dip than a meaningful setback. The NASDAQ is only 4.5% off its late-October peak, and much of the weakness stems from investors recalibrating expectations around AI spending and shifting rate-cut hopes. Big Tech is still showing strong demand signals, and the broader AI investment cycle hasn’t meaningfully changed.
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That’s the landscape analysts are weighing right now, and one of the most vocal bulls is Wedbush’s Daniel Ives. The analyst, who’s also the mind behind the Wedbush AI Revolution ETF (IVES), sees the recent dip as a buying opportunity and continues to argue that AI is ushering in an era more akin to the Industrial Revolution than a rerun of the dot-com bubble.
“It’s been a building white-knuckle moment for tech stocks that hit a turbulent moment starting a few weeks ago during earnings season when AI golden child Palantir put up off the charts eyepopping growth numbers and blew away Street estimates…and the stock sold off hard the next day. This added to fears around the ‘AI Bubble’ talk from the bears along with worries about Nvidia China revenues being shut off and fears of the ‘too big to fail’ OpenAI chatter…with the Burry short tweet adding to the agita. In a nutshell, we view this as a short lived mini panic moment for tech stocks as we believe tech stocks will have a major rally into the rest of the year,” Ives opined.
Ives goes on to back up his position with concrete ‘Buy’ recommendations on two tech names. And he’s not alone; the TipRanks database shows that Wall Street analysts are just as enthusiastic, assigning both names a Strong Buy consensus rating.
Innodata, Inc. (INOD)
Up first on the list of Ives’ picks is Innodata, a tech firm with 35-plus years of experience in IT and data management. The company exemplifies the way that successful tech firms can adapt to changing times – it got its start in 1988, providing IT services, and today puts its institutional knowledge to work bringing AI technology to bear on data engineering. Innodata’s specialty is creating data solutions for training and deploying AI – particularly generative AI – at enterprise scale.
Innodata offers its customers a suite of advantages, including end-to-end solutions that support strong generative AI models. The company uses Red Team processes in its development and testing, probing the models for vulnerabilities, real-world relevance, and multimodal performance – and doing that before release, to correct identified flaws. In addition, Innodata’s AI models are designed to make use of human preference optimization, an approach that allows for greater accuracy and relevance, minimizes AI ‘hallucinations,’ and trains the models for complex scenarios.
More recently, Innodata has been moving to encompass agentic AI in its development work. This new iteration of AI tech permits greater independence and functionality from the models, including enhanced scalability, continuous operations, and improved flexibility and reliability.
This company’s expertise has made it a valuable partner in the tech world, with a customer roster that spans Google Cloud, Amazon, Microsoft, Snowflake, X, Boeing, and Sony. Demand for proven AI services continues to widen as new use cases emerge, and Innodata has positioned itself squarely at the center of that shift. The company now supports more than 2,300 enterprise customers, employs over 6,000 subject-matter experts worldwide, and delivers services across roughly 85 languages.
In its last quarterly report, covering 3Q25, Innodata showed a solid year-over-year revenue gain – its top line of $62.6 million was up 20% from 3Q24 and beat the forecast by $2.77 million. For the nine months ending on September 30, the company reported a total of $179.3 million in revenue, for an impressive 61% year-over-year increase. Innodata reported a GAAP EPS figure of 24 cents, beating the estimates by 10 cents per share. The company has been building up its cash reserves in 2025, and since December 31, its cash and liquid assets on hand have increased from $46.9 million to $73.9 million.
Daniel Ives, setting out the Wedbush view of this AI/data company, sums up an upbeat stance by writing, “The company is well-positioned to continue to capitalize on the significant demand for its AI solutions as it has significant opportunities in the near-term with Big Tech/Hyperscaler/Governments markets along with Agentic AI representing a significant long-term growth opportunity… INOD remains a core 2nd derivative of the AI Revolution and on the IVES AI 30 list.”
Based on this stance, Ives rates INOD shares as Outperform (i.e., Buy), with a $90 price target that points toward a 12-month gain of 57%. (To watch Ives’ track record, click here)
Overall, the stock has picked up 4 recent analyst reviews, and they are unanimously positive – for a Strong Buy consensus rating on the Street. The stock is priced at $57.21 and its $93.75 average price target suggests a 64% upside in the coming year. (See INOD stock forecast)
Dynatrace, Inc. (DT)
The next ‘Ives pick’ we’ll look at is Dynatrace, a tech company that provides a range of vital services, including software intelligence and observability, systems monitoring and analysis, and application performance optimization, among others. Dynatrace knows that every business today is a digital business – no company can survive without making use of data, analytics, infrastructure, and other digital systems – and that makes observability a vital service.
All of that makes Dynatrace a game-changer. The company brings AI tech to bear on data observability and has designed a platform that offers scalability, security, collaboration, and automation, capable of solving the challenges inherent in modern digital and data operations. Through Dynatrace’s services, leveraging both AI and dynamic data mapping, enterprise customers can automate any desired processes.
As of September 30 this year, the company had $1.899 billion in total annual recurring revenue, a figure that was up 17% year-over-year. Among its marquee customers are organizations such as Air Canada and Australian government agencies, while strategic partners include cloud heavyweights like AWS and Red Hat.
On the financial side, Dynatrace reported a total of $494 million in quarterly revenue in its last earnings release, which covered the company’s fiscal 2Q26. This total was up 18% year-over-year and was $6.5 million better than had been expected. The company’s quarterly revenue included $473 million in subscription revenue. At the bottom line, Dynatrace’s 44-cent non-GAAP EPS beat the forecast by 3 cents per share.
Daniel Ives sees plenty of potential for growth in Dynatrace and sums up a clear case for a bullish position on the stock: “The company is seeing strength in DPS/ new products from new logos/existing customers with NRR coming in at 111%, consistent with the prior period… DT’s Log Management solution continues to be the fastest growing product in company history and grew over 100% y/y once again as it remains well on track to hit $100 million in ARR for FY26… We continue to believe that DT is well-positioned to be an Observability leader as the company has a strong pipeline driven by DPS heading into 2H26 and seeing further acceleration of many use cases with enterprises looking to integrate generative AI and efficiently deploy/ manage complex AI across the enterprise.”
The Wedbush expert goes on to assign DT shares an Outperform (i.e., Buy) rating, while setting a $67 price target that suggests a one-year upside potential of 43%.
All in all, the 19 recent analyst reviews of DT shares include 16 Buys and 3 Holds, for a Strong Buy consensus rating. The stock is currently trading at $46.84, and its $61.71 average target price indicates room for a ~32% gain on the one-year horizon. (See DT stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.