Dan Ives Declares Golden Age for AI, Launches New ETF to Tap Potential
Tech analyst Dan Ives declares a ‘golden age’ for AI, particularly within software. He recently launched the Dan Ives Wedbush AI Revolution ETF to spotlight stocks transforming the AI sector. Key companies include Oracle, Palantir, IBM, and Microsoft. Ives emphasizes the importance of looking beyond just big names to identify future AI leaders, while suggesting ongoing growth opportunities in tech investments.
Dan Ives, a long-time tech analyst with Wedbush Securities, is sounding the alarm on what he calls a “golden age” for artificial intelligence, particularly in software. Ives recently launched an AI-focused exchange-traded fund (ETF) aimed at tapping into the burgeoning sector. Speaking on CNBC’s “ETF Edge,” he pointed out that while many companies claim to be involved in AI, it’s essential to look deeper than buzzwords. “Just because they say ‘AI’ on a conference call doesn’t make them an AI player,” he warned.
Ives is spearheading the Dan Ives Wedbush AI Revolution ETF, denoted by the ticker IVES, with ambitions to spotlight stocks that are reshaping the AI landscape. He emphasized that the market is underestimating the potential growth in AI, noting, “For us, it’s not just Mag Seven. It’s not just those first four or five names… It’s trying to identify names that maybe today thematically you don’t even consider an AI name.”
Among the companies he believes will emerge as pivotal players in AI is Oracle, which he predicts will become the “epicenter of the AI theme” in the near future. Oracle’s stock has surged nearly 62% in the past two months, and it holds the position of IVES’ fourth-largest holding. Other notable software stakes in IVES include Palantir, IBM, and Salesforce. Palantir, for instance, has seen its shares climb over 47% recently.
The IVES ETF comprises 30 companies from diverse industries such as hyperscalers, cybersecurity, and robotics, a selection derived from Ives’ comprehensive analysis of critical AI players. “Around the world investors always say, ‘How do you play AI? How do you play the theme?’” he explained, suggesting that his research can help any investor navigate this domain.
Currently, IVES’ top three holdings are Microsoft, Nvidia, and Broadcom. It also showcases smaller tech firms like SoundHound and Innodata which diversify the fund’s portfolio. Notably, IVES is performing well since its launch on June 4, seeing an increase of almost 3% and reportedly holding $183 million in assets by the end of the trading week.
Ives makes it clear that he isn’t resting on his laurels. He plans to reassess the AI holdings every quarter. “There could be a name today that’s not on there. Six months from now, if we find that’s a name that’s become more and more of an AI play, then we’ll put them on there,” he said.
Even though some investors may feel they’ve missed the boat on tech stocks due to recent rises, Ives remains bullish on the sector, urging that misunderstanding valuations could jeopardize future opportunities. “If you focus just on valuation, you miss every transformational tech stock of the last 20 years,” he said, reinforcing the need for a broader view on tech investments.
Dan Ives, a prominent tech analyst, believes we’re in a golden age for AI, especially within software. His newly launched ETF, which highlights emergent companies in the AI space, is a chance for investors to tap into growth potential, even if some may feel late to the game. With diverse holdings and regular reassessment of stocks, Ives’ approach offers insights to shape a more tailored investment strategy in the evolving landscape of AI.
Original Source: www.cnbc.com
