If you're worried that artificial intelligence is just another tech bubble waiting to pop, Wedbush analyst Dan Ives has a message for you: relax. Speaking on CNBC's Closing Bell Overtime Tuesday, Ives made his case that we're still in the early innings of the AI boom, not the ninth inning everyone seems so worried about.

Why the AI Party Isn't Over Yet

"This is just the start," Ives told viewers, predicting the tech bull market has at least two more years to run. His evidence? Look at what's actually happening with companies everyone doubted would benefit from AI.

Take Alphabet Inc. (GOOGL) as exhibit A. Plenty of investors were skeptical about Google's AI prospects not too long ago, but the company's stock tells a different story. Alphabet Class A shares (GOOG) are up 70.74% year-to-date, while Class C shares have climbed 69.77% over the same period.

"The reality is AI is a tailwing for them," Ives explained. He's seeing similar momentum across the chip sector, particularly with Broadcom, Inc. (AVGO), which is riding the same wave.

Ives also weighed in on Apple Inc.'s (AAPL) AI strategy, suggesting the company's partnership with Google will be central to its approach. "Ultimately, I think Apple is really going to walk down the aisle with them from the Gemini partnership. That's going to be their AI piece," he said.

Microsoft and Palantir Lead the Pack

When it comes to specific picks, Ives didn't mince words about Microsoft Corp (MSFT), calling it a "table-pounder" investment. The reasoning is straightforward: Microsoft's dominant position in cloud and enterprise AI services gives it a powerful competitive advantage.

The numbers back him up. Microsoft's first-quarter revenue jumped 18% year-over-year to $77.7 billion, beating analysts' estimate of $75.3 billion. The real star was cloud revenue, which reached $49.1 billion, up 26% year-over-year, with Azure and other cloud services growing at a 40% annual clip. Microsoft shares are up 13.95% year-to-date.

Ives also highlighted Palantir Technologies, Inc. (PLTR) for its practical AI applications. Yes, the valuation looks stretched, and yes, he knows that makes people nervous. "I get the valuation worries, but that is really, I think, right at the epicenter of what we're seeing," he acknowledged.

Government Backing Adds Another Layer

There's also a policy angle strengthening Ives's bullish case. On Monday, an executive order established the Genesis Mission, a government-backed AI initiative that will unify federal data, high-performance computing, and advanced AI into a single platform. The goal is accelerating breakthroughs in medicine, defense, and energy.

For Ives, this represents something bigger than just another government program. "For the first time in 30 years, [the] U.S. is ahead of China when it comes to tech," he noted. That's not just good news for national competitiveness; it's a tailwind for American tech companies leading the AI charge.

The big picture here is that Ives sees AI as fundamentally different from past tech bubbles. Companies are generating real revenue, solving actual problems, and the applications keep expanding. Whether you agree with his two-year timeline or not, the evidence he's pointing to suggests this isn't just hype and hope.