Five-star Wedbush analyst Dan Ives is still very confident about the future of the tech sector, despite growing concerns over interest rates and whether AI-related stocks are overvalued. In a CNBC interview, he called the current investor hesitation “shortsighted,” and predicted that the tech bull market still has at least two more years of strong growth ahead. He pointed to a 30% increase in demand for media chips since June as a clear sign that momentum remains strong.
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Ives believes that we’re only at the beginning of a major technological shift, and expects a “CapEx super cycle.” This means that companies are investing heavily in technology upgrades, and Ives thinks that this spending will pay off. He explained that every dollar spent on capital expenditures today could return $8 to $10 in the future. He also named Meta Platforms (META), Oracle (ORCL), and Tesla (TSLA) as standout investment opportunities, and especially praised Meta as a “table pounder” despite its recent stock declines.
While Ives admitted that not every tech company will succeed, he stressed the importance of being selective rather than pessimistic. He sees strong potential in infrastructure and second to fourth-tier AI-related firms, such as Nebius (NBIS) and CoreWeave (CRWV). Ives also pushed back against comparisons to the dot-com bubble by saying that this feels more like 1996 rather than 1999, which suggests there’s still plenty of runway left. He ended by warning that investors focused only on short-term valuations risk missing out on the next big tech winners, just as many did over the last 20 years.
Which Tech Stock Is the Better Buy?
Overall, out of the five stocks mentioned above, Wall Street analysts think that CRWV stock has the most room to run. In fact, CoreWeave’s average price target of $147.96 per share implies more than 90% upside potential. On the other hand, analysts expect the least from Tesla stock, as its average price target of $382.54 equates to a loss of 5.7%.
