Wedbush Securities analyst Daniel Ives is highly optimistic about the technology sector’s second quarter earnings season. He believes tech companies will report very strong Q2 results, driven by multiple artificial intelligence (AI) tailwinds. Ives mentioned that strong momentum in AI chips, AI software, and enterprise applications is already benefiting, and will continue to benefit tech stocks through the second half of 2025, with AI’s impact still in its early stages.
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Ives ranks #896 out of 9,889 analysts tracked on TipRanks. He has a 51% success rate and an average return per rating of 8.90%. The firm’s “Top Tech Picks” for the remainder of 2025 include Nvidia (NVDA), Microsoft (MSFT), Tesla (TSLA), Palantir (PLTR), and Meta (META).
Ives Calls AI the 4th Industrial Revolution
Ives argues that AI is fundamentally reshaping the tech sector and that its benefits are just beginning to emerge. “We have barely scratched the surface of this 4th Industrial Revolution,” he wrote in a research note, describing it as a golden era for technology. Over the next three years, enterprises and governments are expected to spend approximately $2 trillion on AI-related projects, he added.
Additionally, Ives believes Wall Street is “underestimating” the scale of future AI-driven growth, as AI use cases are rapidly expanding with increasing adoption. He added that AI is shifting from the testing phase to the consumption phase, which serves as a major catalyst for software companies.
Furthermore, Ives anticipates a favorable policy environment, with ongoing geopolitical risks and tariff uncertainties expected to ease. He highlighted the White House’s approval allowing Nvidia to resume its H20 AI chip sales to China as a “key strategic positive.” Based on this, Ives expects the Trump administration to soften its stance on tariffs.
Interestingly, Ives also explained that AI spending has a broad ripple effect across the sector, stating that for every $1 spent with Nvidia, an additional $8 to $10 is invested elsewhere in the tech ecosystem.
Which Is the Best Tech 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, and NVDA have earned Wall Street’s Strong Buy consensus rating, with META offering the highest upside potential among them.
