Wedbush’s top analyst, Daniel Ives, shared insights from the World Economic Forum in Davos, where he met with global tech executives. He noted that the AI revolution remained the key theme, despite the ongoing geopolitical tensions involving Greenland. Ives was particularly impressed that Nvidia (NVDA) and Palantir Technologies (PLTR) stood out as prime beneficiaries of what he calls the “fourth industrial revolution.”

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Ives emphasized that talks centered on AI investment, adoption, and monetization. He asserted, “The one thing that is clear from Davos is the U.S. tech world is dominating the AI Revolution with China a distant second.”

Ives is a five-star analyst on TipRanks, ranking #390 out of 12,040 analysts tracked. He has a 56% success rate and an average return per rating of 16.80%.

Nvidia Is the Central Force Behind AI

Ives noted that Nvidia remains the central force powering global AI development. He expects soaring demand from AI hyperscalers such as Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL) to fuel the next growth phase, as Nvidia’s GPUs (graphics processing units) power their AI tech and software.

Despite investor worries about high valuations and the massive capital investments required to sustain AI, Ives believes the market is understating the opportunity. He projects about $3 trillion in AI-related outlays from enterprises and governments over the next three years, with more than $550 billion already underway.

Wedbush has a Buy rating on NVDA and a $230 price target, implying 25.5% upside potential.

Palantir Is a Clear Star in the AI Revolution

Ives stated that Palantir stands out as one of the largest beneficiaries of the AI revolution. As companies shift from AI hype to real-world results, Palantir’s Artificial Intelligence Platform (AIP) helps translate investments into measurable revenue.

Ives positions Palantir as a frontrunner in the AI monetization era, stemming from its ability to deliver actionable AI solutions that align with enterprise needs. Its actionable solutions set it apart, enabling chief information officers (CIOs) across sectors to turn strategic plans into business gains.

Ives has a Buy rating and a $230 price target on PLTR, suggesting 39.1% upside potential.

Big Tech Earnings to Validate the Boom

Ives anticipates the Q4 earnings season will validate the AI investment boom, led by cloud and AI giants. He noted that Wedbush’s field research shows strong enterprise AI demand for Microsoft, Alphabet, and Amazon during the quarter. Ives expects capex plans will ramp up even more in 2026.

Ending Thoughts

Ives compared the current moment to mid-1996 rather than the overheated 1999 bubble, noting that AI-driven growth remains in its infancy and is yet to be priced into tech valuations. Looking ahead, Ives predicts that expanding real-world AI applications in software and semiconductors will dominate the next 12 to 18 months, bolstering Wedbush’s bullish outlook as the AI revolution accelerates.

Using the TipRanks Stock Comparison Tool we observe that NVDA stock has a “Strong Buy” consensus and a 43.7% upside potential over the next twelve months, signaling solid analyst conviction in the stock. Meanwhile, Wall Street remains sidelined on PLTR after its 134% stock price surge over the past year.

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