Dan Ives of Wedbush Securities stated on CNBC that spending on AI remains robust, benefiting companies like Microsoft (MSFT), Amazon (AMZN), and Meta (META). He emphasized that capital investments in tech and AI are strong despite tariffs. Ives believes that software offers security for investors, predicting that Big Tech will uplift market confidence rather than incite fear. While acknowledging MSFT’s potential, he suggests that AI stocks may offer higher returns in a shorter timeframe. He also mentions a promising AI stock, priced under five times earnings, for investors seeking alternatives. The article is originally from Insider Monkey.
Expenditure on AI “is as steadfast as the Rock of Gibraltar,” with Microsoft (MSFT), Amazon (AMZN), and Meta (META) continuing to gain from the AI Revolution, said Dan Ives, a Managing Director and Senior Equity Research Analyst at Wedbush Securities, recently on CNBC.
A collaborative development team is focused on creating the next iteration of Windows. Ives has expertise in the tech sector. Why Ives Remains Mostly Optimistic about Big Tech According to Ives, capital expenditure in the tech field “is remaining strong,” and investments in AI specifically are very robust. Additionally, “tariffs… are not hindering the AI Revolution,” with MSFT, AMZN, and META set to benefit from the ongoing expansion of AI, the renowned analyst added. Generally, “software serves as the safety net” for investors at this stage, while Meta Platforms (META) is expected to gain notably from a strong advertising market, Ives noted. Ives’ Conclusion on Big Tech He predicted that “Big Tech will instill more confidence this week rather than” heightening the Street’s anxieties.
While we recognize the potential of MSFT, we firmly believe that AI stocks offer a greater opportunity for higher returns within a shorter timeframe. One specific AI stock has appreciated since the start of 2025, while many popular AI stocks have dropped about 25%. For those searching for an AI stock with more potential than MSFT that trades under 5 times its earnings, consider checking out our report on the cheapest AI stock.
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Disclosure: The author holds shares of AMZN but does not plan to trade them in the next 48 hours. This article was originally published at Insider Monkey.