Dan Ives Says Three Stocks Set for Major Breakouts in 2026, Driven by Monetization of AI
Wall Street veteran and Wedbush Securities’ global head of tech research, Dan Ives, is bullish on three other trillion-dollar company amid a tech rally that he believes has more upside potential.
In a new interview on CNBC International, Ives says he believes Apple (AAPL) will surge by at least 25% from the current level, driven by monetization of artificial intelligence (AI) services.
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“Monetization is going to be key for Apple. The consumer AI revolution runs through Cupertino…
[My price target is] $350. But look, I think if they get this right, you could have a four in front of it. I think that’s ultimately where we see Apple heading as this all plays out. Because when you start to put the monetization of AI, and you put numbers together, I think it’s $75 to $100 per share that AI adds to Apple.”
Apple is trading at $279 at time of writing.
Turning to Microsoft (MSFT), Ives says the Redmond, Washington-based software giant will benefit significantly from the monetization of AI services.
“Microsoft, I think we’ve talked about this… this is a 30 – 40% upside from here. I think investors are underestimating just how the penetration story is going to look like when it comes to AI. And I think monetization…
…I think no one really benefits more [from monetization of AI] than what we see up in Redmond.”
Microsoft is trading at $478 at time of writing.
Next up is Alphabet. Ives says he’s very bullish on the year ahead for Google’s parent company amid a “massive turnaround story” with the release of the Gemini 3 large language model.
According to Ives, a potential partnership between Alphabet and Apple that would allow the iPhone maker to use the Gemini platform could prove to be “key” for Google’s parent company due to Apple’s wide user base.
“Now, it’s all about Google Gemini. That’s going to be a key partnership [with Apple]. Then, ultimately, you’re going to see probably a paid subscription service as they launch into the spring. And you have the biggest install base in the world.”
Last month, in an SEC filing, Berkshire Hathaway disclosed it had acquired a $4.34 billion stake in Alphabet.
Billionaire Stanley Druckenmiller’s family office also revealed it had bought a $24.85 million stake in Alphabet in the third quarter.
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