Dan Ives, a Wall Street veteran and the global head of technology research at Wedbush Securities, is bullish on three other trillion-dollar companies amid a tech rally that he believes has more upside potential.
In a new interview on CNBC International, Ives says say he believes Apple (AAPL) will rise at least 25% from current levels, driven by monetization of artificial intelligence (AI) services.
“Revenue generation will be critical for Apple. The consumer AI revolution runs through Cupertino…
[My price target is] $350. But look, I think if they do this right, you could have a four for it. I think ultimately this is where we see Apple going as all this plays out. Because if you add up the revenue from AI and add up the numbers, I think AI adds $75 to $100 per share to Apple.”
Apple is listing at $279 at the time of writing.
As for Microsoft (MSFT), Ives says the Redmond, Washington-based software giant will benefit significantly from monetizing AI services.
“Microsoft, I think we’ve talked about this… this is a 30 to 40% upside from here. I think investors are underestimating what the penetration story will look like when it comes to AI. And I think monetization…
…I don’t think it really benefits anyone anymore [from monetization of AI] than what we see in Redmond.
Microsoft is trading at $478 at the time of writing.
Next is Alphabet. Ives says he is very optimistic about the year ahead for Google’s parent company, amid a “huge turnaround” with the release of the Gemini 3 major language model.
According to Ives, a potential partnership between Alphabet and Apple, which would allow the iPhone maker to use the Gemini platform, could prove “key” for Google’s parent company due to Apple’s broad user base.
“Now it’s all about Google Gemini. That will be an important partnership [with Apple]. Then you’ll likely see a paid subscription service eventually when it launches in the spring. And you have the largest install base in the world.”
Last month, in an SEC filing, Berkshire Hathaway revealed it had acquired a $4.34 billion stake in Alphabet.
Also the family office of billionaire Stanley Druckenmiller revealed it had bought a $24.85 million stake in Alphabet in the third quarter.
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