After a historic run for AI stocks, many investors are asking a similar question.
Have we missed the opportunity? Or if there is still a lot of game left to play.
In the latest episode of Ticker Take, I spoke with Dan Ives, Managing Director and Global Head of Technology Research at Wedbush Securities, about where we really are in the AI story. Ives has been one of the loudest bulls on Wall Street, and his answer was simple.
We are in the third inning.
Still early, in his opinion. Ives points to what he is seeing on the ground, including conversations from a recent trip across Asia, customer demand for AI chips running well ahead of supply, and the fact that AI is still being used by only a small slice of the enterprise world. The way he sees it, the real spending cycle is just getting going.
So how does he pick the companies that will benefit?
Ives uses a three-step process. He starts with the secular story, looking at whether the company is in the right corner of the AI buildout to begin with. Then he digs into the company itself, including the leadership, the execution, and the ability to turn the opportunity into real growth. The last step is risk.
With that in mind, here is Ives’ AI lineup, batting one through nine. As always, this is not financial advice.
Batting first: Microsoft (MSFT)
Microsoft is the leadoff hitter. Ives says when companies start thinking about how to use AI in the enterprise, they almost always start with Microsoft. Its cloud platform, partnership with OpenAI, and reach across business software put it in the middle of nearly every AI conversation happening in corporate America.
Batting second: Alphabet (GOOG)
Alphabet rounds out what Ives calls a one-two punch at the top of the order. The company has leadership in search, cloud, and a deep bench of AI research. Ives sees it as a clear winner as AI becomes a core part of how people find information and how businesses run.
Batting third: Palantir (PLTR)
Ives says there is no better story on the software side right now than Palantir. The company has built a strong position with both governments and large enterprises, and Ives believes the next phase of AI adoption is just getting started. That should give Palantir plenty of room to keep growing.
Batting fourth: Nvidia (NVDA)
Nvidia takes the cleanup spot, and for good reason. Ives has been bullish on the chip giant for a long time, and he thinks there is still a lot more room to run. With demand for AI chips continuing to outpace supply, Nvidia remains at the center of the build-out.
Batting fifth: Taiwan Semiconductor (TSM)
Ives says no matter who ends up winning the chip wars, almost all of those chips are made at TSMC. That makes the company a key piece of the entire AI story. The bigger the industry gets, the more important TSMC becomes.
Batting sixth: CrowdStrike (CRWD)
From chips to cybersecurity. Ives believes CrowdStrike will be one of the biggest winners from the AI buildout. As companies deploy more AI, the need to protect data, systems, and users only grows, and CrowdStrike is in a strong spot to meet that demand.
Batting seventh: Palo Alto Networks (PANW)
Palo Alto Networks is the other half of Ives’ cyber pair. The company also recently announced a major deal for CyberArk. Ives sees it as a key player in the next chapter of cybersecurity, especially as AI changes the threat landscape.
Batting eighth: AMD (AMD)
Ives believes there will be plenty of chip winners outside of Nvidia, and he puts AMD at the top of that list. The company has been gaining ground in AI-focused chips and is positioning itself as a serious alternative for customers looking to diversify their suppliers.
Batting ninth: Tesla (TSLA)
Ives sees Tesla as the play on what he calls physical AI. Think autonomous driving, robotics, and the next wave of AI moving from screens into the real world. He believes Tesla is one of the most important companies to watch as that shift unfolds.
The Ticker Take
It is easy to look at how far AI stocks have already come and assume the game is mostly over.
But Ives’ view is that the real spending cycle has barely started, and there are still plenty of innings to play across chips, software, security, and the next wave of AI showing up in the physical world.
For investors who think they missed it, it just comes down to picking the right all-stars.
Jon Erlichman is a BNN Bloomberg contributor and the host of Ticker Take on YouTube.
