For all of the “bubble” speak on the AI commerce, the reality is that it continues to defy gravity. That’s displaying up within the tape, with earnings, and with Wall Road’s high voices concurring that the present growth has legs.
Let’s begin with the scoreboard.
The S&P 500 is up almost 13% in 2025, and AI-powered tech giants have pushed near 80% of these features, led by corporations resembling Nvidia, Microsoft, and Alphabet. Additionally, there’s the wealth impact, the place 30 AI shares have added near $5 trillion to U.S. family wealth prior to now yr, in line with JPMorgan.
Additional, on earnings, the maths speaks for itself.
FactSet successfully pegs 2025 S&P EPS development at an excellent 11%, with Q3 monitoring at a stellar 8% to 9%, because the “Magnificent 7” delivered 27% EPS development in Q2, with each single one beating estimates.
Nvidia alone is among the many high contributors to Q3 bottom-line development, proving that AI is displaying up in money and is not only hype. Moreover, with TSMC’s bullish AI demand outlook and ASML’s robust outcomes, the availability chain continues to substantiate it.
The focus is actual, although, and that pattern is displaying up within the income as effectively.
Some strategists count on Nvidia might quickly account for a double-digit proportion of the S&P 500, however that’s more likely to be extra of a mirrored image of actual capital expenditures, not dot-com vapor. Even Goldman Sachs and Citi see AI publicity broadening throughout almost 50% of the index.
That mentioned, veteran tech analyst Dan Ives, who’s betting that this momentum received’t be fading anytime quickly, simply refreshed his Massive Tech “purchase” checklist heading into year-end.
The names sound acquainted, however his reasoning would possibly shock you.
Dan Ives sees recent upside as AI momentum builds throughout Massive Tech.Picture by Tasos Katopodis on Getty Photos
Daniel Ives isn’t shopping for the “AI bubble” narrative. The Wedbush tech analyst even argues that the AI commerce is getting into its subsequent leg increased.
He likens the second to a “1996, not 1999 second,” saying there’s an actual industrial-scale transformation taking place in digital infrastructure.
Regardless of international tensions and valuation noise, Ives feels it is crucial to concentrate on the sheer AI demand, use circumstances, and supply-chain suggestions that underscore the sustainability of the pattern.
We imagine tech shares shall be very robust into year-end and may very well be up one other 10%+ as the subsequent a part of this AI Revolution takes maintain.
Regardless of international tensions and valuation noise, Ives feels it is crucial to concentrate on the sheer AI demand, use circumstances, and supply-chain suggestions that underscore the sustainability of the pattern.
Taking that view ahead, he simply refreshed his Massive Tech “purchase” checklist for the remainder of 2025, highlighting that Apple, Tesla, and Salesforce stay the three corporations he sees because the spine of the AI financial system’s subsequent section.
Regardless of the flak Apple has acquired, it is nonetheless Ives’ quiet favourite, a tech big sitting on a 2.35 billion-device ecosystem that may successfully monetize AI throughout {hardware} and providers.
The corporate’s fiscal Q3 2025 outcomes confirmed document quarterly gross sales of $94 billion, which is up 10% yr over yr, whereas its EPS of $1.57 has skyrocketed 12%. These numbers, Ives argues, type a launchpad for the corporate’s subsequent act.
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“The elephant within the room has been the invisible AI technique,” Ives mentioned. He feels that with 2.4 billion iOS units and 1.5 billion iPhones, Apple has the impetus to supercharge its AI efforts by way of exterior partnerships. That lacking piece of the AI monetization puzzle may doubtlessly add $75 to $100 per share to the Apple story.
Apple’s “Apple Intelligence” suite, which is layered with iOS 18, iPadOS 18, and macOS Sequoia, is simply the beginning. For Ives, the shortage of an “AI premium” in Apple’s inventory makes it maybe probably the most compelling undervalued names to personal into year-end and 2026.
For Ives, Tesla isn’t only a carmaker, but in addition a strong AI platform in movement. With a whopping $1.4 trillion market cap, it’s constructing a parallel financial system constructed on autonomy and robotics.
“The AI valuation will begin to get unlocked within the Tesla story,” Ives wrote, forecasting that the EV big might hit a $2 trillion market cap by early 2026 and $3 trillion by year-end 2026.
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Tesla’s Full Self-Driving (FSD) and Robotaxi packages are vital to that thesis.
The Robotaxi service is at the moment dwell in Austin and the Bay Space, and is increasing testing to Arizona and Nevada, with plans for Chicago and Aurora, Illinois. On the robotics entrance, Optimus, Tesla’s humanoid robotic, might ultimately account for as a lot as 80% of revenues, in line with Musk’s projections.
Although Q2 2025 income dropped 12% yr over yr to $22.5 billion, Tesla nonetheless comfortably beat market estimates, and Ives feels that pullback is generally non permanent.
“We imagine the march to an AI-driven valuation for Tesla has now begun,” he mentioned. “Cybercab and autonomy penetration are the golden goose for Musk & Co.”
Ives rounded out his checklist with Salesforce, hailing it as arguably probably the most underappreciated AI play amongst enterprise software program giants.
The corporate successfully transitioned from CRM to full-scale enterprise AI by way of Agentforce, a digital-agent suite that’s tailored to effectively automate gross sales, service, and workflows.
Latest partnerships with OpenAI and Google are deepening Salesforce’s moat.
Extra Tech Shares:
Customers acquire entry to Agentforce 360 by way of ChatGPT, whereas Google’s Gemini fashions seamlessly plug into Salesforce knowledge for smarter personalization.
The payoff is already right here with fiscal 2026 income hitting a whopping $10.2 billion, up 10% yr over yr, with non-GAAP EPS of $2.91 blowing previous expectations by 13 cents.
“CRM has grown gross sales capability by 20% yr over yr whereas boosting productiveness throughout accounts,” Ives mentioned. “With 40% of Fortune 1000 work elevated by AI by 2029, Salesforce is positioned to guide.”
Ives feels that Salesforce is reaching 20,000 paying Agentforce prospects by FY26, which ought to drive a strong new wave of subscription and repair development.
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This story was initially reported by TheStreet on Oct 19, 2025, the place it first appeared within the Expertise part. Add TheStreet as a Most popular Supply by clicking right here.
