Veteran analyst resets Big Tech ‘buy’ list for rest of 2025
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For all of the “bubble” discuss on the AI commerce, the reality is that it continues to defy gravity. That’s exhibiting up within the tape, with earnings, and with Wall Road’s high voices concurring that the present increase has legs.
Let’s begin with the scoreboard.
The S&P 500 is up practically 13% in 2025, and AI-powered tech giants have pushed near 80% of these features, led by corporations resembling Nvidia, Microsoft, and Alphabet. Additionally, there’s the wealth impact, the place 30 AI shares have added close to $5 trillion to U.S. family wealth up to now 12 months, in keeping with JPMorgan.
Additional, on earnings, the maths speaks for itself.
FactSet successfully pegs 2025 S&P EPS progress at an excellent 11%, with Q3 monitoring at a stellar 8% to 9%, because the “Magnificent 7” delivered 27% EPS progress in Q2, with each single one beating estimates.
Nvidia alone is among the many high contributors to Q3 bottom-line progress, proving that AI is exhibiting up in money and isn’t just hype. Moreover, with TSMC’s bullish AI demand outlook and ASML’s robust outcomes, the provision chain continues to verify it.
The focus is actual, although, and that pattern is exhibiting up within the earnings as effectively.
Some strategists count on Nvidia could quickly account for a double-digit proportion of the S&P 500, however that’s prone to be extra of a mirrored image of actual capital expenditures, not dot-com vapor. Even Goldman Sachs and Citi see AI publicity broadening across nearly 50% of the index.
That mentioned, veteran tech analyst Dan Ives, who’s betting that this momentum gained’t be fading anytime quickly, simply refreshed his Large Tech “purchase” checklist heading into year-end.
The names sound acquainted, however his reasoning would possibly shock you.
Dan Ives sees contemporary upside as AI momentum builds throughout Large Tech.Photograph by Tasos Katopodis on Getty Pictures
Daniel Ives isn’t shopping for the “AI bubble” narrative. The Wedbush tech analyst even argues that the AI commerce is getting into its subsequent leg greater.
He likens the second to a “1996, not 1999 second,” saying there’s an actual industrial-scale transformation taking place in digital infrastructure.
Regardless of world tensions and valuation noise, Ives feels it is crucial to give attention to the sheer AI demand, use circumstances, and supply-chain suggestions that underscore the sustainability of the pattern.
We imagine tech shares can be very robust into year-end and may very well be up one other 10%+ as the subsequent a part of this AI Revolution takes maintain.
Regardless of world tensions and valuation noise, Ives feels it is crucial to give attention to the sheer AI demand, use circumstances, and supply-chain suggestions that underscore the sustainability of the pattern.
Taking that view ahead, he simply refreshed his Large Tech “purchase” checklist for the remainder of 2025, highlighting that Apple, Tesla, and Salesforce stay the three corporations he sees because the spine of the AI economic system’s subsequent part.
Regardless of the flak Apple has acquired, it is nonetheless Ives’ quiet favourite, a tech large sitting on a 2.35 billion-device ecosystem that may successfully monetize AI throughout {hardware} and providers.
The corporate’s fiscal Q3 2025 outcomes confirmed file quarterly gross sales of $94 billion, which is up 10% 12 months over 12 months, whereas its EPS of $1.57 has skyrocketed 12%. These numbers, Ives argues, type a launchpad for the corporate’s subsequent act.
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“The elephant within the room has been the invisible AI technique,” Ives mentioned. He feels that with 2.4 billion iOS units and 1.5 billion iPhones, Apple has the impetus to supercharge its AI efforts by way of exterior partnerships. That lacking piece of the AI monetization puzzle might probably add $75 to $100 per share to the Apple story.
Apple’s “Apple Intelligence” suite, which is layered with iOS 18, iPadOS 18, and macOS Sequoia, is simply the beginning. For Ives, the shortage of an “AI premium” in Apple’s inventory makes it maybe probably the most compelling undervalued names to personal into year-end and 2026.
For Ives, Tesla isn’t only a carmaker, but in addition a strong AI platform in movement. With a whopping $1.4 trillion market cap, it’s constructing a parallel economic system constructed on autonomy and robotics.
“The AI valuation will begin to get unlocked within the Tesla story,” Ives wrote, forecasting that the EV large could hit a $2 trillion market cap by early 2026 and $3 trillion by year-end 2026.
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Tesla’s Full Self-Driving (FSD) and Robotaxi packages are crucial to that thesis.
The Robotaxi service is presently stay in Austin and the Bay Space, and is increasing testing to Arizona and Nevada, with plans for Chicago and Aurora, Illinois. On the robotics entrance, Optimus, Tesla’s humanoid robotic, could ultimately account for as a lot as 80% of revenues, in keeping with Musk’s projections.
Although Q2 2025 income dropped 12% year over year to $22.5 billion, Tesla nonetheless comfortably beat market estimates, and Ives feels that pullback is generally momentary.
“We imagine the march to an AI-driven valuation for Tesla has now begun,” he mentioned. “Cybercab and autonomy penetration are the golden goose for Musk & Co.”
Ives rounded out his checklist with Salesforce, hailing it as arguably probably the most underappreciated AI play amongst enterprise software program giants.
The corporate successfully transitioned from CRM to full-scale enterprise AI by way of Agentforce, a digital-agent suite that’s tailored to effectively automate gross sales, service, and workflows.
Current partnerships with OpenAI and Google are deepening Salesforce’s moat.
Extra Tech Shares:
Customers acquire entry to Agentforce 360 by way of ChatGPT, whereas Google’s Gemini fashions seamlessly plug into Salesforce information for smarter personalization.
The payoff is already right here with fiscal 2026 income hitting a whopping $10.2 billion, up 10% 12 months over 12 months, with non-GAAP EPS of $2.91 blowing previous expectations by 13 cents.
“CRM has grown gross sales capability by 20% 12 months over 12 months whereas boosting productiveness throughout accounts,” Ives mentioned. “With 40% of Fortune 1000 work elevated by AI by 2029, Salesforce is positioned to steer.”
Ives feels that Salesforce is reaching 20,000 paying Agentforce clients by FY26, which ought to drive a robust new wave of subscription and repair progress.
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