Dan Ives Reveals Top AI Stocks for 2026 Growth

Wedbush Securities analyst Dan Ives has identified five AI stocks set to lead in 2026, excluding Nvidia, as discussed on CNBC's "Squawk Box." Ives, Wedbush's global head of technology research, anticipates these stocks will benefit from the rapid adoption of AI, with large-cap tech sectors potentially increasing by 20% or more during this industry "inflection point."[1][2]

Ives highlighted that while Nvidia remains a key player under CEO Jensen Huang, investors should consider diversifying into stocks that will drive the next phase of AI infrastructure and monetization. His selections underscore a maturing ecosystem where cloud providers, data platforms, and enterprise software companies are expected to benefit from the growing demand for AI workloads.[1][3]

Background on Dan Ives and Wedbush's AI Outlook

Dan Ives is known for his optimistic tech analysis, often appearing on CNBC to discuss AI-driven growth. In late December 2025, he described 2026 as a crucial year, with AI transitioning from hype to large-scale deployment. Large-cap tech, particularly "Mag-7" companies like Microsoft, could see significant gains—up to 30-40%—driven by increasing deals and infrastructure developments.[2]

Ives' analysis is based on enterprise AI adoption accelerating by 30% in cloud services like Azure, according to Wedbush's proprietary data. He views recent market declines in companies like Oracle as exaggerated, indicating potential buying opportunities. This comes amid broader market optimism, with AI capital expenditures projected to increase by $75 billion, though Ives advises looking beyond Nvidia's dominance.[1][2]

Ives' Top Five AI Stock Picks for 2026

Based on his CNBC discussions, Ives named these five AI stocks as key investments for the upcoming year, each linked to essential AI infrastructure components:

Microsoft (MSFT): Ives predicts Microsoft will reach $250 per share, driven by Azure's 30-40% growth in AI deals. He considers this a conservative estimate, noting the potential underestimation of OpenAI integrations and enterprise Copilot adoption.[2]
Oracle (ORCL): Despite recent downturns, Ives views the sell-off as excessive. Oracle's shift to cloud positions it for AI database demand, with potential for significant revenue growth following RPO adjustments.[3]
ServiceNow (NOW): Known for its AI workflow automation, Ives sees it as a standout in enterprise software as companies deploy AI agents at scale.[3]
Palantir (PLTR): A leader in data analytics, Palantir is well-positioned to benefit from AI's data-intensive nature, with Ives focusing on government and commercial contracts.[1]
Snowflake (SNOW): As a cloud data platform, Snowflake supports AI model training on large datasets, poised for substantial growth in the "data renaissance."[3]

These selections complement Nvidia's hardware, focusing on software, cloud, and data—areas Ives predicts will thrive as AI transitions to monetization.[1][3]

Why 2026 Marks the AI Inflection Point

Ives argues that 2026 will showcase AI's "next stage," with large-cap tech sectors rising by 20% overall and leaders like Microsoft surpassing that. Key drivers include:

Capex Surge: $75 billion in additional AI spending, funding data centers and GPUs.[1]
Cloud Acceleration: 30% deal growth in Azure-like services, underestimated by investors.[2]
Monetization Ramp: Transition from proof-of-concepts to full deployments, boosting revenues for platforms like Snowflake and Palantir.[3]

He dismissed concerns about debt-laden firms, noting that 5% debt adjustments still offer significant upside. Recent CNBC appearances, including "Closing Bell," reinforced his belief that market pullbacks are opportunities.[2]

Market Context and Investor Implications

Ives' picks come as AI stocks face volatility. Nvidia's dominance has often overshadowed peers, but Wedbush data suggests diversified exposure offers better risk-adjusted returns. For example, Microsoft's Azure momentum exceeds expectations, while Oracle's recovery might surprise post-earnings.

Broader implications affect tech: expect Mag-7 outperformance, with AI enabling 20-40% sector gains. Investors should monitor Q1 2026 earnings for validation—deals accelerating, margins expanding.

Risks include regulatory scrutiny on AI energy use and chip supply chains. Yet Ives remains confident: "2026 will be the year," echoing his "Renaissance" theme for data and cloud.[2][3]

This outlook positions Ives' selections as essential for AI's promising era, blending established hyperscalers with high-growth enablers. As enterprises embrace AI, these stocks could redefine portfolios.