Arguably, there’s been no bigger bull in the artificial-intelligence (AI) rally than Wedbush’s Dan Ives.
Ives has been cheerleading the AI boom since shortly after the debut of ChatGPT. In February 2023, the analyst said an AI arms race was shaping up following the launch of the generational AI chatbot.
That statement has been borne out, as Nvidia has raced ahead among chip stocks, fending off recent challenges from AMD and Intel. In addition, cloud infrastructure companies such as Microsoft, Alphabet, Amazon, and Oracle are rapidly buying Nvidia components to serve the AI demands of their own customers.
Ives’ prediction that tech stocks would gain 20% in 2023 was also accurate, as the tech-heavy Nasdaq index finished up 24%. He also called 2024 the “year of AI,” saying that tech stocks would jump 25%. That was also correct.
Now, Ives is banging the drum for tech stocks to continue to rise in 2025, driven by the AI boom. In a recent post on X, Ives predicted that stocks would jump 25% in 2025, building on its gains over the past two years.
Ives has argued before that the AI boom will take the form of a multiyear rally in the stock market, much like the dot-com boom of the 1990s, which lasted for five years before ending in a crash.
Despite some concerns that an AI bubble may be forming, signs are generally pointing to a continued rally in AI stocks. First, revenue and profit are likely to continue to soar as stocks like Nvidia are still reporting rapid growth, and other stocks are joining the AI rally, including Micron and now a number of software companies.
There are also larger macro trends that could drive tech stocks higher. In particular, Ives noted a benefit from Lina Khan’s stepping down as head of the Federal Trade Commission. Khan has led several high-profile lawsuits against big tech companies, and the regulatory framework is expected to be friendlier to big business under President Trump.
In addition, investors seem to be anticipating support from the new administration for AI initiatives, as tech stocks jumped following the election. Meanwhile, the race to artificial generative intelligence is well under way, and as long as companies such as OpenAI are working toward achieving that goal, spending on cybersecurity is likely to remain strong.
Tech stocks are coming into 2025 with a lot of momentum, but the biggest risk factor at this point is the valuation. The Nasdaq is up more than 50% over the past two years, and it’s now about as expensive as it’s been at any point since the dot-com bubble.
As we head into the new year, Wall Street analyst Dan Ives is making bold predictions about the future of tech stocks. According to Ives, he sees tech stocks jumping another 25% in 2025, signaling a potentially lucrative opportunity for investors.
With the rapid advancements in technology and the increasing reliance on digital solutions, it’s no surprise that tech stocks are continuing to soar. Companies in sectors such as artificial intelligence, cloud computing, and e-commerce have shown tremendous growth potential in recent years, and Ives believes this trend will only continue in the coming years.
For investors looking to capitalize on this projected growth, now may be the perfect time to buy tech stocks. While there is always some level of risk involved in investing, the potential rewards could be substantial for those willing to take the leap.
Of course, it’s always important to do your own research and consult with a financial advisor before making any investment decisions. But with Ives’ optimistic outlook on tech stocks, it may be worth considering adding some tech companies to your portfolio in 2025.
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