The Big Call

When a Wall Street analyst says they're "pounding the table" on a stock, they're not being subtle. And Wedbush's Dan Ives, one of tech's most visible bulls, did exactly that on Tuesday for two mega-cap names: Meta Platforms Inc. (META) and Microsoft Corp. (MSFT).

Speaking on the "Full Signal" podcast with Phil Rosen, Ives laid out his case for why these two companies have the most upside potential among the AI hyperscalers. And he's not talking about modest gains here.

Meta's Massive Upside

Wedbush maintains a $920 price target on Meta, which represents a whopping 47% potential upside from current levels. That's the kind of number that makes investors sit up and pay attention.

Ives' thesis centers on what he calls a "capex super cycle." Meta is pouring billions into data centers and AI infrastructure, and while that sounds expensive (because it is), Ives argues the returns will be extraordinary. He's suggested that every dollar spent could generate $8 to $10 over time. That's the kind of return on investment that turns good companies into generational winners.

Microsoft's Golden Era

On Microsoft, Ives and his firm have a $600 price target, which he has actually called "conservative." That's a telling word choice. He believes the company is entering a "golden era" powered by artificial intelligence adoption.

The key driver? A "massive adoption wave" for Microsoft's AI tools, particularly Copilot. As cloud spending converts into AI spending, Ives sees this as a major growth catalyst that's only just beginning.

He also made a bold prediction: Microsoft could become one of the first companies to reach a $5 trillion market capitalization. For context, Nvidia has already crossed that threshold, but the club remains extraordinarily exclusive.

The Bottom Line

Ives' message to investors is clear: look past the daily market volatility and focus on the bigger picture. Both Meta and Microsoft are positioned to capture enormous value from the estimated $1 trillion in AI spending expected over the next decade.

He views any pullback in either stock as a buying opportunity rather than a reason to worry. When you're this confident in the long-term trajectory, short-term dips are features, not bugs.

It's a bullish stance, no question. But coming from someone who's built a reputation on getting tech calls right, it's the kind of conviction that tends to move markets.