“This is just the beginning of the next phase of the AI revolution,” declared Dan Ives, global head of technology research at Wedbush, while revealing his 2026 outlook for the technology sector on CNBC’s “Fast Money.” Mr. Ives’ commentary during the panel discussion focused on the long-term and profound impact of artificial intelligence, painting a picture of an accelerating market poised for significant growth beyond current valuations. His insights are especially applicable to founders, venture capitalists, and AI professionals navigating an era of transformation.
The discussion featuring Ives and other panelists primarily revolved around strategic strategies and investment opportunities within the burgeoning AI ecosystem. Ives outlined a bold prediction, predicting a 20% to 25% rise in “AI revolution stocks” across a wide range of technology sectors, from software and cybersecurity to infrastructure. This prediction is not just a guess. That is underpinned by a visible acceleration of AI trading by hyperscalers, which he notes has increased by 20-25% in recent weeks. This surge marks a critical inflection point, moving beyond conceptualization to aggressive monetization and deployment.
Nvidia, the undisputed leader in AI chips, emerged as a central pillar of Ives’ thesis. He argued that NVIDIA is aggressively “getting its feet on the ground across the entire AI ecosystem,” a strategic move that expands its influence far beyond its core hardware business. Our recent investment in Synopsys, a leading electronic design automation company, exemplifies this strategy. Synopsys’ adoption of Nvidia’s CUDA platform effectively turns partners into paying customers, further embedding Nvidia’s technology as a foundational layer across the industry.
While some market observers may view such investments as a form of vendor financing that could raise red flags, Ives offered a different perspective. “This is an AI arms race,” he argued, saying these moves are essential to securing long-term strategic advantage. He believes that for every $1 NVIDIA invests in these partnerships, it will generate returns of $8 to $10 over the next two to four years. This long-term perspective highlights fundamental changes in how value is created and captured in the AI era, where ecosystem advantages are paramount.
The market’s immediate reaction to the Synopsys news was a modest increase in the stock price, perhaps reflecting a short-sighted focus. But Ives sees this as an opportunity, classifying the synopsis as a play on the “second and third order” of the AI revolution. It highlights a recurring theme in his analysis. That is, markets often underestimate the broader ramifications of changes in fundamental technology.
Another company that has generated quite a bit of controversy is Palantir. Ives remains resolutely bullish, despite recent volatility and some who think valuations are too high. He advised investors to “triple up” on Palantir, predicting that the data analytics company’s market cap could reach trillions of dollars within the next two to three years. This belief stems from Palantir’s unique position as the “first call” for enterprise AI use cases, especially in critical areas such as defense and intelligence, where its platform is already deeply integrated.
Related books
Ives’ extensive list of top AI picks goes beyond the obvious chipmakers and hyperscalers, further demonstrating the inclusive nature of this revolution. He identifies significant opportunities in enterprise software, cybersecurity, autonomous systems, robotics, and even consumer internet, with companies such as Microsoft, Alphabet, Amazon, Oracle, IBM, Snowflake, Palo Alto Networks, Tesla, Apple, and Meta all poised to benefit. The breadth of these categories emphasizes that AI is not a niche technology, but a pervasive force that is reshaping nearly every industry.
The current phase is characterized by an accelerated transition from experimental AI projects to widespread enterprise adoption and tangible monetization. The real winners will be those that can effectively integrate AI into their core products and leverage it for competitive advantage. The strategic investments and partnerships being built today are more than transactional. These are the fundamental building blocks of a future economy that will increasingly be powered by intelligent systems. This period requires a nuanced understanding of both technical capabilities and strategic market positioning, recognizing that true value is often realized over multiple years.
