Wedbush’s Dan Ives Predicts One Stock Group Will ‘Significantly Outperform’ in Second Half of 2026

Investors to be Surprised by Hyperscalers in the Next Six Months, Predicts Wedbush Analyst

Wedbush managing director and senior equity research analyst Dan Ives is confident that a certain group of stocks, which has been lagging behind, will soon catch investors by surprise in the coming months.

During an interview on Bloomberg Television, Ives shared his insights, highlighting that despite the massive spending on artificial intelligence by many companies, he believes that the hyperscalers are set to reclaim their position as market leaders.

“The hyperscalers are investing a whopping $700 billion in AI. This is the driving force behind the AI revolution. While there is significant expenditure on memory chips and NVIDIA, this is just the initial phase. The build-out that the hyperscalers are currently engaged in is akin to the development of the Vegas Strip in 1955. The focus now is on monetization. Companies like Meta, Microsoft, Alphabet, and Amazon are not just spending for the sake of spending. They are strategically positioning themselves for the future.”

Ives is optimistic that the upcoming earnings season will prove skeptics of the Magnificent 7 wrong.

“Despite the tech rally we’ve witnessed, the Mag 7 are currently being overlooked. I anticipate a significant outperformance from them in the latter half of the year. The upcoming earnings season in July will serve as a pivotal moment of validation for Big Tech.”

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