From chips to cloud: AI's golden era is just starting, says Wedbush's Ives

Investing.com -- Artificial intelligence is driving a massive transformation across the technology sector, and its momentum is only beginning, according to Wedbush analysts led by Dan Ives.

In a note Friday, Wedbush projected that tech stocks are set for a strong second half of 2025, buoyed by a “very strong 2Q tech earnings season” and accelerating AI tailwinds across semiconductors, software, and enterprise applications.

“We have barely scratched the surface of this 4th Industrial Revolution,” the firm wrote, calling it a “golden age” for the tech world.

Wedbush estimates that $2 trillion will be spent on AI-related enterprise and government projects over the next three years.

“The Street is underestimating the underlying AI-driven growth ahead,” the analysts said, adding that “use cases are exploding” as companies transition from idea to scale.

Enterprise adoption of generative AI is now entering a consumption phase, they wrote, with “true adoption” becoming a catalyst for the software sector.

Ives named Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Meta (NASDAQ: META), Palantir (NASDAQ: PLTR), and Tesla (NASDAQ: TSLA) as Wedbush’s top tech picks for the rest of 2025.

Even amid geopolitical headwinds and tariff risks, the firm expects a supportive policy backdrop.

“The Trump Administration will continue to soften its stance around tariffs,” the note said, highlighting Nvidia’s resumed sales of H20 chips in China as a “key strategic positive.”

Wedbush sees a multiplier effect from AI investment. “For every $1 spent with Nvidia, we estimate the multiplier is another $8 to $10 spent throughout the rest of the tech ecosystem,” the analysts wrote, underscoring the expanding impact of AI from chips to the broader digital economy.

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