Wedbush's Dan Ives talk top tech names to own heading into 2026

Key Concepts

• AI Revolution: The overarching theme, driving investment and growth in the tech sector.
• Hyperscalers: Companies building large-scale cloud infrastructure (implied, as a key area for AI investment).
• RPO (Remaining Purchase Obligations): Future revenue commitments from contracts, particularly relevant to Oracle and AI deals.
• Palantir: A data analytics company with a high valuation, reliant on commercial business growth.
• Robotics & Autonomous Systems: Emerging area of innovation, with Serve AI highlighted as a promising company.
• NVIDIA: Considered the "Godfather of AI" but not currently a top pick for Wedbush Securities due to valuation and derivative opportunities.

Tech Investment Outlook: Wedbush Securities’ Perspective

The discussion centers on the evolving landscape of tech investments, particularly in the context of the ongoing Artificial Intelligence (AI) revolution. Dan Ives, Global Head of Technology Research at Wedbush Securities, outlines the firm’s top tech picks for the coming year, diverging from a focus solely on established giants. The conversation highlights a shift towards identifying companies poised to benefit from the derivatives of AI, rather than solely focusing on NVIDIA, which Ives acknowledges as the “Godfather of AI” and a foundational player.

Top Tech Picks & Rationale

Wedbush’s top five tech names for the next year are Microsoft, Apple, Tesla, Palantir, and CrowdStrike. This selection is based on how each company plays a role in the AI revolution across different sectors:

• Microsoft: Positioned to capitalize on AI within the hyperscaler space (large-scale cloud computing).
• Apple: Leveraging AI to enhance the consumer experience.
• Tesla: Integrating AI into autonomous driving and other innovations.
• Palantir: Focused on enterprise solutions and data analytics powered by AI.
• CrowdStrike: Utilizing AI for cybersecurity solutions.

Palantir’s Valuation & Growth Potential

A significant portion of the discussion focuses on Palantir (PLTR) and its ambitious $1 trillion valuation. Ives believes the key to justifying this valuation lies in the growth of its commercial business, which he estimates could reach $2-3 billion. He projects Palantir’s revenue will double over the next 3-4 years, driven by the broader AI revolution. He acknowledges the stock is currently “super expensive” but remains bullish on its long-term prospects. Specifically, he anticipates Palantir achieving a $1 trillion valuation within the next 2-3 years.

Robotics & Autonomous Systems: Emerging Opportunities

The conversation shifts to the potential of robotics, particularly in the context of the upcoming Consumer Electronics Show (CES). Ives highlights Serve AI as an “off the radar” name demonstrating true autonomous delivery capabilities. He believes autonomous systems will be a central theme at CES, with NVIDIA’s Jensen Huang expected to set the stage. He emphasizes that robotics will be “key” to the future, representing a core investment area.

Oracle & Remaining Purchase Obligations (RPO)

The discussion addresses the significance of Remaining Purchase Obligations (RPO), exemplified by Oracle’s recent $500 billion contract with OpenAI. RPO represents future revenue commitments. Ives believes the market was too quick to dismiss Oracle’s RPO, viewing it as a signal of accelerated growth – potentially increasing from 18% to 30%, then to 45%, and ultimately reaching 80-90% fulfillment. He anticipates a “renaissance” for Oracle, driven by its role in the AI revolution. He suggests investors are underestimating Oracle’s potential, and that the company could deliver on a significant portion of its RPO commitments.

Shifting Focus from Established Leaders

The conversation implies a broadening investment strategy, moving beyond solely focusing on the established tech giants that have driven S&P 500 growth. The emphasis is on identifying companies that will benefit from the second, third, and fourth order effects of the AI revolution, rather than solely concentrating on the foundational players like NVIDIA.

Notable Quotes

• Dan Ives: “There’s only one Godfather of AI, Jensen [Huang].” (referring to NVIDIA’s CEO)
• Dan Ives: “I think investors are wrong to call out that this RPO [Oracle’s Remaining Purchase Obligations]…is ultimately the acceleration of growth.”

Technical Terms

• Hyperscaler: A company that provides cloud computing services on a massive scale, such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform.
• RPO (Remaining Purchase Obligations): The value of contracts that have been signed but not yet fulfilled, representing future revenue.
• AI Revolution: The rapid advancement and widespread adoption of artificial intelligence technologies.

Logical Connections

The discussion flows logically from a broad overview of the tech investment landscape to specific company analyses. The conversation begins with identifying Wedbush’s top picks, then delves into the rationale behind those choices, focusing on Palantir and Oracle as case studies. The discussion then expands to emerging areas like robotics, connecting them back to the overarching theme of the AI revolution.

Data & Statistics

• Palantir Revenue Projection: $6.5 billion in revenue expected next year.
• Oracle RPO: $500 billion in Remaining Purchase Obligations.
• Oracle Growth Projection: Potential growth acceleration from 18% to 30%, 45%, and potentially 80-90%.

Conclusion

The key takeaway is a shift in investment strategy towards companies positioned to benefit from the broader AI revolution, beyond the established leaders. Wedbush Securities is bullish on companies like Palantir, CrowdStrike, and Serve AI, believing they offer significant growth potential. The firm also anticipates a resurgence for Oracle, driven by its substantial RPO and role in the AI ecosystem. The conversation underscores the importance of identifying the “derivatives” of AI, rather than solely focusing on the foundational technologies.