tl;dr
Dan Ives of Wedbush Securities predicts Microsoft and Nvidia could each reach $5 trillion market caps by the end of next year due to rapid AI advancements. Microsoft currently has a $3.8 trillion market cap, and Nvidia $4.2 trillion. Ives highlights AI's growth as a bullish factor for software and t...
Dan Ives, the global head of technology research at Wedbush Securities, forecasts that Microsoft (MSFT) and Nvidia (NVDA) could each reach $5 trillion market caps by the end of next year, driven by rapid advances in artificial intelligence (AI). Currently, Microsoft holds a market cap of $3.8 trillion with shares trading at $511, while Nvidia trades at $173 per share with a $4.2 trillion market cap.
Ives highlights the explosion of AI use cases as a bullish factor for software companies and major tech players, especially Microsoft's leadership under CEO Satya Nadella. He underscores that the potential $5 trillion valuations for both Microsoft and Nvidia could materialize within the next 18 months as AI adoption accelerates.
Beyond the heavyweights, Ives identifies promising opportunities among several software firms poised for significant growth. Palantir (PLTR), trading at $153 per share, stands out as a leader in the AI revolution, alongside MongoDB (MDB) at $218 per share, Snowflake (SNOW) at $211, and IBM, trading at $282 per share, which is experiencing a revival linked to AI monetization strategies.
According to Ives, the software sector, which has underperformed recently, along with cybersecurity, could emerge as standout performers across tech in the latter half of the year. This perspective suggests that investors might consider diversifying into these segments to capture potential upside fueled by AI-driven innovation.