To The Moon

As we approach the new year, few voices carry as much weight in the tech investment space as Dan Ives, the Global Head of Tech Research at Wedbush Securities. Known for his bullish calls on transformative technologies, Ives has built a reputation over 25 years on Wall Street for spotting winners in high-growth sectors. His predictions often focus on the intersection of innovation and market opportunity, and for 2026, he's doubling down on what he calls the "AI Revolution" entering its next gear. Drawing from his recently published Top 10 Tech Predictions, Ives envisions a year where AI moves beyond hype into widespread monetization, driving gains across software, chips, infrastructure, and related fields.

In this article, we'll break down Ives' key themes, his top investment picks, and practical ways to position your portfolio for 2026. While Ives remains optimistic about tech's potential for over 20% upside, it's worth noting contrasting views from analysts like Dr. Ed Yardeni, who suggests rotating out of mega-cap tech into sectors like financials and industrials due to rising competition.

The Overarching Theme: AI's "Prove It" MomentIves describes 2026 as an inflection point for artificial intelligence, where the technology shifts from infrastructure buildout to real-world application and revenue generation.

He predicts the second, third, and fourth derivatives of AI—spanning software enhancements, cybersecurity integrations, and autonomous systems—will fuel broad market gains. Tech stocks as a whole could rise more than 20%, with AI acting as the catalyst for a "fourth industrial revolution."

Key drivers include enterprise adoption of AI tools, geopolitical negotiations opening markets (e.g., U.S.-China trade talks benefiting chip access), and strategic partnerships among tech giants. Ives emphasizes that 2026 will be the year AI "proves it" through tangible results, such as scaled deployments and monetized services, rather than speculative promises.This theme underpins his picks, focusing on companies positioned to capitalize on

Ives' Top Investment Picks for 2026Based on his Top 10 predictions, here are the standout stocks and themes Ives is championing. These span hyperscalers, AI enablers, and niche players, with price targets and rationales grounded in execution milestones.Tesla (TSLA): Ives calls 2026 a "golden year" for Tesla, marking the dawn of its true autonomous era. He forecasts the successful launch of Robotaxis in over 30 cities, with no safety drivers needed, and volume production of Cybercabs ramping up by mid-year.Autonomy alone could add $1 trillion to Tesla's valuation, pushing the company toward a $3 trillion market cap by late 2026 or early 2027.

Base-case price target: $600; bull case: $800. Rationale: Tesla's shift from EV maker to AI powerhouse, with robotics (like Optimus) as a bonus growth driver.

Apple (AAPL) and Alphabet (GOOG/GOOGL): A formal AI partnership around Google's Gemini platform is on the horizon, integrating advanced AI into iPhones via a subscription model.

This could cement Apple's AI strategy and propel its market cap to $5 trillion in 2026.

Rationale: The deal addresses Apple's lag in AI while leveraging Google's strengths, creating a win-win for consumer tech.

Cybersecurity Leaders: CrowdStrike (CRWD) and Palo Alto Networks (PANW): Cybersecurity will be one of the top-performing tech subsectors, with "cyber meets AI" as a core theme.

Expect M&A activity. Rationale: Rising AI-driven threats will boost demand for advanced platforms, positioning these as "golden names" in the space.

Oracle (ORCL): Ives targets $250 per share as Oracle converts its massive AI backlog into revenue through datacenter expansions.

Rationale: Despite current negative sentiment, 2026 will see a rebound as AI deals materialize.

Microsoft (MSFT): Hitting its "sweet spot" with enterprises accelerating AI via Azure, Microsoft is Ives' top outperforming cloud software name.

Rationale: Strong positioning in AI adoption will drive outperformance over peers.

Nvidia (NVDA): Remaining the dominant AI chip player, with improved access to China via trade negotiations. Bull case: $275 per share.

Rationale: The Street underestimates ongoing demand drivers in the AI boom.

Palantir (PLTR): Expanding commercial AI success through its AIP platform, Palantir could reach a $1 trillion valuation in the next 2-3 years.

Rationale: As a software leader in the AI Revolution, it's front and center for enterprise solutions.

Quantum Computing Plays: IonQ (IONQ) or Rigetti (RGTI): Ives predicts the Trump Administration will invest in a quantum company for national security reasons, countering China.

Rationale: Quantum tech's strategic importance could lead to government-backed growth.

How to Invest for 2026: Strategies and ConsiderationsTo capitalize on Ives' vision, consider these approaches:Direct Stock Purchases: Focus on the picks above, starting with core holdings like Tesla, Microsoft, and Nvidia for broad AI exposure. Use limit orders to buy on dips, given potential volatility from economic shifts or regulatory hurdles.

ETFs for Diversification: For those wary of single-stock risk, ETFs offer a basket approach. The Wedbush ETF (IVES), managed with Ives' insights, targets tech disruptors. Broader options include the Invesco QQQ Trust (QQQ) for Nasdaq-heavy tech, or AI-specific funds like the Global X Artificial Intelligence & Technology ETF (AIQ). Cybersecurity enthusiasts might look at the First Trust NASDAQ Cybersecurity ETF (CIBR), which includes CrowdStrike and Palo Alto.

Thematic Investing: Allocate to AI sub-themes—e.g., 40% in hyperscalers (MSFT, GOOG), 30% in infrastructure (NBIS, ORCL), 20% in autonomous/AI hardware (TSLA, NVDA), and 10% in emerging areas like quantum (IONQ).

Risk Management: While Ives is bullish, remember tech's sensitivity to interest rates, geopolitical tensions, and competition. Diversify across sectors, set stop-losses at 10-15% below entry points, and monitor quarterly earnings for AI monetization proof. If Yardeni's caution proves right, a balanced portfolio with non-tech holdings could mitigate downside.

In summary, Dan Ives' 2026 playbook is a roadmap for the AI-driven future, emphasizing execution over speculation. By aligning with these picks and themes, investors can position themselves for what could be a transformative year in tech. As always, conduct your own due diligence and consult a financial advisor—markets can pivot, but Ives' optimism is backed by a history of spotting winners.