The AI Revolution Enters Its Next Phase

If you're wondering whether the AI trade still has legs, Wedbush analyst Dan Ives has an answer: absolutely, and then some. Speaking on CNBC's "Fast Money" Monday, Ives laid out a bullish case for another year of substantial gains in tech stocks, driven by what he calls the next stage of the AI revolution.

Ives isn't being coy about his expectations. He's predicting that major tech names tied to artificial intelligence could rally "anywhere from 20 to 25%" in 2026. These are the "AI revolution stocks," as he describes them, and they're positioned to be the key drivers of growth as the industry shifts from infrastructure building to actual revenue generation.

The evidence is showing up in deal flow. Ives highlighted a notable uptick in AI-related transactions, particularly among hyperscalers—the massive cloud computing providers that form the backbone of AI infrastructure. According to his recent market checks, roughly 20% to 25% of deals have been fast-tracked over just the past few weeks. In Ives' view, this acceleration signals something important: "the beginning of the monetization of the AI revolution."

Why Palantir Is Different

Then there's Palantir Technologies Inc. (PLTR), which got "hammered right after earnings" but remains one of Ives' highest-conviction calls. His take? It's time to "triple down" on the stock.

This is where things get interesting. Palantir currently trades at valuations that would make most value investors wince, but Ives sees a "$1 trillion market cap" for the company over the next two to three years. His reasoning centers on the company's unique positioning in the AI landscape, particularly within the enterprise space where CEO Alex Karp has been methodically building out capabilities.

"They're playing a different game," Ives said, suggesting that the market hasn't fully understood the scale of what Palantir is constructing. That disconnect, in his analysis, represents significant upside waiting to be unlocked as the market catches up to the reality of the company's AI platform and its expanding deal pipeline.

The company has demonstrated strong momentum and growth characteristics in recent market data, with a favorable long-term price trend despite near-term volatility. For investors trying to navigate the AI investment landscape, Ives' message is clear: don't confuse short-term price action with the underlying transformation taking place in enterprise AI adoption.