TLDR
- Dan Ives predicts that tech stocks will rise 20 to 25% by 2026, driven by AI monetization in the consumer and enterprise sectors.
- Tesla and Nvidia are leading the way in physical AI, with CES 2026 expected to showcase advances in robotics and autonomous technologies.
- Only 3% of US companies have implemented AI, but broader business integration is expected by 2026.
- Big Tech will spend $600 billion in investments, while Meta, Nvidia and Microsoft plan further AI-related acquisitions and expansions.
- China’s AI sector is expanding, with BYD and Huawei gaining ground and greater participation expected at CES 2026.
Wedbush Securities has released its AI stock outlook for 2026, led by Managing Director Dan Ives, who predicted a strong year. Ives stated that 2026 will act as a turning point as AI monetization expands into the consumer, enterprise and robotics sectors. He predicted a 20 to 25% rise in tech stocks over the year, driven by broader adoption of AI.
AI monetization will expand across all industries by 2026
During a interview along with Bloomberg, Dan Ives called 2026 a “proof year” for AI and emphasized that investors are entering the next phase of the cycle. He said: “It’s about second, third and fourth derivatives,” referring to deeper AI integration into physical and enterprise technology. According to Ives, Tesla and Nvidia are the two best-positioned companies in physical AI heading into 2026.
In addition, he also pointed to robotics, autonomous vehicles and embedded consumer AI as key product areas expected to develop. CES 2026 will highlight these trends, with major players such as Tesla and Nvidia presenting their presentations. Ives confirmed that Nvidia CEO Jensen Huang will headline the CES stage, with a speech expected to focus on physical AI developments.
Dan Ives said the presentation will focus on “autonomous robotics” and may include early-stage consumer AI applications. Ives also described Tesla’s focus as entering an “autonomous chapter,” in which vehicle AI generates more revenue. Despite the limited adoption of artificial intelligence in US companies, Ives believes AI will achieve broader adoption in enterprises by 2026. He noted that only 3% of companies have implemented AI to date.
Major tech leads, acquisitions expected to rise
Ives stated that big tech is still at the top and called the current developments ‘an arms race’. He said Meta, Nvidia and other companies have made major acquisitions by the end of 2025 to strengthen AI infrastructure. Ives expects more acquisitions in the business and energy segments in 2026. He expected $600 billion in capital expenditures from major tech companies this year. He also said players like AMD, Cisco and IBM will look to enter key AI sectors.
Ives added that Microsoft has an advantage in enterprise AI through its existing customer base. He said: “As companies move to AI, the first call goes to Nadella.” Ives predicted $25 to $30 billion in new revenue for Microsoft from AI-related products by 2026. He believes these earnings are not yet fully reflected in Wall Street’s forecasts. He also said Microsoft shares could reach a price starting with a six.
China’s role is growing as robotics and chips gain attention
Ives acknowledged China’s growing role, especially in robotics, autonomous vehicles and semiconductor development. He said BYD and Huawei will remain important players in China’s AI movement. BYD’s chip unit filed for an initial public offering, which attracted the attention of global investors in late 2025. Ives said the presence of Chinese companies at CES will “double” compared to previous years. He also said that China’s narrowing gap in AI will attract more global capital.
Despite political tensions, Ives said Chinese companies will continue to acquire American chip technology where allowed. He said Nvidia remains four to five years ahead of the competition, even with export restrictions. Ives also confirmed that his company’s AI-focused ETF includes several Chinese companies. He cited Huawei’s hardware advances and BYD’s EV integration as examples. He concluded that American and Chinese companies will continue to compete for leadership in AI in 2026.
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