Wedbush analyst Daniel Ives has reaffirmed his optimistic outlook on the artificial intelligence (AI) sector and sees Microsoft (MSFT), Meta Platforms (META), Alphabet (GOOGL), and Palantir (PLTR) painting a “bullish story for the AI Revolution.”
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Also, he has identified five key companies poised for significant growth in the latter half of 2025: Nvidia (NVDA), Meta, Microsoft, Palantir, and Tesla (TSLA).
In a new investor note, Ives stated that the Street continues to underestimate the scale of AI-driven growth, particularly following a strong earnings season from major tech companies.
In particular, PLTR was called the “poster child of the AI Revolution” after delivering a blowout quarter and raising guidance well above Wall Street expectations. The company’s 93% surge in U.S. commercial revenue indicates that enterprise AI adoption is accelerating.
Global AI Investment to Hit $2T
Overall, Ives believes that investors are just beginning to see the impact of what he calls the “fourth industrial revolution,” driven by enterprise and government spending on AI. He estimates that global AI investment will hit $2 trillion over the next three years, with generative AI moving from concept to scale in 2025.
Also, he mentioned that MSFT’s Copilot tools, NVDA’s AI chips, and PLTR’s enterprise platforms are all seen as foundational technologies in this shift.
“This is a golden age for tech,” Ives said. “The best barometers for the AI Revolution are Nvidia, Palantir, Meta, and Microsoft. These companies are the cornerstones of the biggest tech trend we’ve seen in 25 years.”
Ives believes more software companies are starting to use AI as it becomes more useful and widely adopted. With geopolitical tensions and tariff concerns easing, Ives expects tech stocks to rally into year-end, especially the firms leading the way in AI.
Which Is the Best AI Stock to Buy?
We used the TipRanks Stock Comparison Tool to determine which stock among Ives’ top picks is most favored by analysts. Investors should conduct thorough research before choosing to invest in any of these stocks.
Currently, META, MSFT, GOOGL, and NVDA have earned Wall Street’s Strong Buy consensus rating, with MSFT offering the highest upside potential among them.
