Dan Ives: 2026 will be key period to show next stage of AI trade from software and cyber

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twenty twenty six will be an inflection point in the AI revolution that's just one of the predictions wedbush 's dan ives is making as he looks ahead to the new year joins us now as you see it's good to

Dan Ives (Global Head of Tech Research) 00:10.550

see you agreed to be here what does

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that mean an inflection point i think it's

Dan Ives (Global Head of Tech Research) 00:13.950

about the modernization of the AI revolution specifically on the software side you know i think obviously pound here we've seen that front and center but you look at mango DB snowflake the use cases i think really the infrastructure build out i mean this is really going to be a

Dan Ives (Global Head of Tech Research) 00:30.590

key period to show the next stage of the AI revolution from a software cybersecurity and infrastructure perspective all

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right so the headline here is that you think tech stocks are going to be up over twenty percent in twenty twenty six when you say you're talking as the sector the sector is gonna be up twenty percent

Dan Ives (Global Head of Tech Research) 00:47.630

i think sector is gonna be up twenty percent i actually think large cap tech in terms of like some of the mag seventeen can be up morick i think like a microsoft could be up thirty forty percent i look at names like google i look at what ultimately in my opinion you have three

Dan Ives (Global Head of Tech Research) 01:03.710

to four trillion that's going to be spent next three to four years you're just starting now this next phase like i've talked about third inning in terms of nine inning game but but now the second third fourth derivative is play out across software across the infrastructure

Dan Ives (Global Head of Tech Research) 01:17.990

across cybersecurity and that's why i just anytime you talk about AI bubble i mean i was just an easy right for three weeks i mean demand the supplies twelve to one and US for the first time in thirty years ahead of china

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what isn't known about the microsoft story at this point and why is the stock underperformed relative to some others why could it possibly be up forty percent next year yeah

Dan Ives (Global Head of Tech Research) 01:37.790

i think to something that's a view like OK it's not just microsoft it's what google has done they've had a lot of success on cloud it's obviously aws and what jassy 's done is you know is is impressive but i think when investors are underestimating is we've seen deals accelerate

Dan Ives (Global Head of Tech Research) 01:54.790

thirty percent from azure from our checks so i think as microsoft comes out in late january as you start to see the numbers play out i mean i i think it could be conservative thirty or forty percent in my view like microsoft and name where when i look at large cap the table

Dan Ives (Global Head of Tech Research) 02:12.310

pounders here apple and we could talk about that microsoft and i've said i think oracle the sell off here way way overdone that like i think it could be a two hundred fifty dollars stock

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why are you so sure the sell off is overdone in oracle

Dan Ives (Global Head of Tech Research) 02:28.280

because i view it as like when you think about the AI revolution the stack and their install base and all that and all the checks that we do i'm not saying there's not gonna be bumps in the road in terms of the data center build out

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isn't that what we're witnessing sort of right now how the street is viewing the financing behind the the build out that the very build out you're talking about

Dan Ives (Global Head of Tech Research) 02:46.950

yeah i think the street is basically giving it little to no credit for the five hundred billion that are they're essentially going to have in terms of you know in the future in terms of not just open AI but building out the building out the stack over the coming years you're

Dan Ives (Global Head of Tech Research) 03:01.430

going to have growth accelerating from seventeen percent to thirty percent to forty five percent i think investors are basically putting a massive discount saying like OK i'll call that and you're not gonna ultimately be able to hit that and i think that's why oracle right here

Dan Ives (Global Head of Tech Research) 03:16.310

i continue view as a huge proving moment that they're gonna

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show you don't have any concerns about the balance sheet at all

Dan Ives (Global Head of Tech Research) 03:22.230

look i i view it as like if you could take on some debt to get to really transformation for them to really become hyper scour and you look at that open AI revenue and i think anyone associated with open AI right now you've seen those stocks trade a lot lower and i disagree

Dan Ives (Global Head of Tech Research) 03:39.700

because in my view like open AI is going to be the epicenter of this stage of the AI revolution and we've talked about it it's like you're you're still in the early days of the monetization i think it's going to prove out that this is a huge buying opportunity in microsoft in

Dan Ives (Global Head of Tech Research) 03:57.420

oracle in a lot of these names you know nvidia rooted that have sold off all right

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so you mentioned apple do you think that apple one of your predictions number three apple and google will announce a formal AI partnership around gemini that will finally cement a real AI strategy for cupertino expand on that

Dan Ives (Global Head of Tech Research) 04:14.380

well i think you know part of the issue and we've been at WWDC the last few years back to future type moments you know where really they there have been on a treadmill of two point five speed on AI now finally you have new leadership from the outside i think you have a lot of

Dan Ives (Global Head of Tech Research) 04:29.620

changes that are setting the stage for the gemini partnership they couldn't do that before the DOJ win now google and apple and i think that cements in march and april and it sets up for cupertino finally coming to the AI party that's worth i think seventy five to a hundred

Dan Ives (Global Head of Tech Research) 04:46.300

dollars per share that probably the number one large cap name that you don't hear