Veteran analyst resets Big Tech ‘buy’ list for rest of 2025
For all the “bubble” talk on the AI trade, the truth is that it continues to defy gravity. That’s showing up in the tape, with earnings, and with Wall Street’s top voices concurring that the current boom has legs.
Let’s start with the scoreboard.
The S&P 500 is up nearly 13% in 2025, and AI-powered tech giants have driven close to 80% of those gains, led by companies such as Nvidia, Microsoft, and Alphabet. Also, there’s the wealth effect, where 30 AI stocks have added close to $5 trillion to U.S. household wealth in the past year, according to JPMorgan.
Further, on earnings, the math speaks for itself.
FactSet effectively pegs 2025 S&P EPS growth at a superb 11%, with Q3 tracking at a stellar 8% to 9%, as the “Magnificent 7” delivered 27% EPS growth in Q2, with every single one beating estimates.
Nvidia alone is among the top contributors to Q3 bottom-line growth, proving that AI is showing up in cash and is not just hype. Additionally, with TSMC’s bullish AI demand outlook and ASML’s strong results, the supply chain continues to confirm it.
The concentration is real, though, and that trend is showing up in the profits as well.
Some strategists expect Nvidia may soon account for a double-digit percentage of the S&P 500, but that’s likely to be more of a reflection of real capital expenditures, not dot-com vapor. Even Goldman Sachs and Citi see AI exposure broadening across nearly 50% of the index.
That said, veteran tech analyst Dan Ives, who’s betting that this momentum won’t be fading anytime soon, just refreshed his Big Tech “buy” list heading into year-end.
The names sound familiar, but his reasoning might surprise you.
Daniel Ives isn’t buying the “AI bubble” narrative. The Wedbush tech analyst even argues that the AI trade is entering its next leg higher.
He likens the moment to a “1996, not 1999 moment,” saying there’s a real industrial-scale transformation happening in digital infrastructure.
Despite global tensions and valuation noise, Ives feels it’s imperative to focus on the sheer AI demand, use cases, and supply-chain feedback that underscore the sustainability of the trend.
We believe tech stocks will be very strong into year-end and could be up another 10%+ as the next part of this AI Revolution takes hold.
Despite global tensions and valuation noise, Ives feels it’s imperative to focus on the sheer AI demand, use cases, and supply-chain feedback that underscore the sustainability of the trend.
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