Expect another big tech rally under Donald Trump on regulation getting defanged. That’s the sentiment echoed by Wedbush Dan Ives, who believes tech stocks will continue edging higher in 2025 after hitting record highs in 2024. Senior analysts foresee artificial intelligence propelling big tech to new heights amid increased technology adoption.
While cloud adoption in workplaces increased to 30% at the height of the Covid 19 pandemic in 2020, it is now expected to soar to more than 75% amid growing AI adoption. Likewise, Ives expects increasing demand for AI tools and solutions to propel the excellent tech industry to new heights, with Apple, Nvidia and Microsoft being some of the biggest beneficiaries.
“We are talking about the beginning of what was ultimately now trillion of Capex dollars towards tech. that’s why big tech continue to get bigger mag seven everything else and that’s not stopping especially with regulatory essentially defanged under Trump administration . Khan will be out the FTC and others, so this is going to be a really golden age for big tech,” said Ives in an interview with Schwab Network
While Ives is backing Apple to become the first company to hit the $4 trillion mark on market cap, Tesla will also hit a new milestone. The Wedbush senior analyst expects the electric vehicle giant to hit a new milestone as the biggest beneficiary of friendly policies such as the pulling back EV credits under Trump.
A shot of someone securely accepting crypto assets as payment, showcasing the company’s payment solutions.
Tesla Inc. (NASDAQ:TSLA) is one of the stocks that exploded after Donald Trump won the hotly contested presidential election. The company has benefited from growing expectations that it will be one of the beneficiaries owing to strong ties between its chief executive officer, Elon Musk and Donald Trump.
“This was a bet for the ages. Musk betting on Trump is going to change the whole landscape for Tesla autonomous AI regulatory. I think a lot gets massively accelerated EV cash credits gets pulled probably in January that’s negative for the industry negative for Detroit… Look I believe that AI alone, the autonomous piece is worth a trillion dollars alone for Tesla stock,” said Ives.
Palantir Technologies Inc. (NASDAQ:PLTR) is another stock that Ives believes has been mischaracterized and misunderstood despite being a big perfumer. The senior analyst thinks the software giant is well-positioned to benefit from the AI revolution owing to its ability to capitalize on transformative opportunities.
Palantir has already inked a strategic partnership with Microsoft and has joined forces to provide the US government with cloud services, AI, and analytic solutions. Ives, a longtime supporter, views the collaboration as a game-changer.
Government work was regarded as Palantir’s mainstay prior to AI becoming a central theme in the company’s story. However, the company’s commercial side is now the primary beneficiary of the AI opportunity. Nonetheless, Ives stresses that this collaboration highlights the ongoing significance of Palantir’s government work.
In addition to tech stocks, Ives insists that investors should be bullish on Bitcoin and the broader cryptocurrency sector. That’s because the entire industry is poised to benefit from deregulation under the Trump administration. The market analyst expects a bull market in the crypto scene that will last into 2026 owing to friendly regulation.
“You have to be bullish on Bitcoin and overall crypto. Because another thing that is going to happen over the next three to six months and the next big thing you will see more and more companies that may be were not going to invest in Bitcoin and crypto now you are going to see more of their cash go into that given the regulatory framework that has dramatically changed,” Ives said.
The sentiments come on Bitcoin rallying to over $100k a coin in the aftermath of Trump nominating Paul Atkins to head the Securities and Exchange Commission. Atkins, a cryptocurrency advocate, is expected to push for a lighter regulatory approach that will benefit the industry.
Palantir isn’t on our latest list of the 31 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of PLTR as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.