Dan Ives, global head of technology research at Wedbush, appeared on CNBC’s ‘Closing Bell’ to delve into the current market surge in tech stocks, attributing much of the momentum to the anticipated policies under the incoming Trump administration. Ives emphasized that the tech sector is just at the beginning of what he describes as the “AI revolution,” with significant growth expected as AI applications expand across various industries.
Ives pointed out that the Trump administration’s approach to deregulation, particularly in areas overseen by agencies like the FTC and NHTSA, would create a “Goldilocks scenario” for tech companies. This environment, he argued, would significantly benefit companies like Tesla (TSLA), which could see accelerated growth in autonomous driving technology due to reduced regulatory hurdles. He predicted a bullish outlook for the NASDAQ, forecasting it could reach 25,000 over the next 12 to 18 months.
The discussion also touched on the strategic meetings between tech CEOs and President-elect Trump in Palm Beach, suggesting these interactions are a sign of the tech industry’s alignment with the new administration’s policies. Ives highlighted the multiplier effect of AI investments, noting that for every dollar spent on Nvidia (NVDA) chips, there’s a potential $8 to $10 increase in value across other tech sectors, including enterprise software and cybersecurity.
Addressing concerns about the regulatory overhang from the previous administration, Ives was optimistic. He suggested that with Lina Khan’s departure from the FTC, a significant portion of the regulatory pressure would diminish, although he acknowledged that legal actions like those against Alphabet (GOOG, GOOGL) and Apple (AAPL) might continue under different oversight.
When asked about the biggest winners in this new tech landscape, Ives named Microsoft (MSFT) as a prime beneficiary, especially in terms of mergers and acquisitions (M&A). He believes Microsoft is undervalued by the market, predicting it could reach a $4 trillion market cap within a year due to the growing enterprise demand and AI integration into cloud services. Alphabet and Amazon (AMZN) were also highlighted for their potential in expanding into chip technology and other AI-driven innovations.
Ives concluded by applauding Elon Musk’s strategic bet on Trump, positioning Tesla as potentially the “biggest winner” in this scenario due to its advancements in AI and autonomous technology. His analysis paints a picture of a tech sector on the cusp of significant growth, driven by both technological innovation and favorable political changes.
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