If you've been listening to the tech bears warning that the AI party is winding down, Dan Ives has a message for you: you're standing outside looking through the window while everyone else is still dancing. The Wedbush Securities Global Head of Tech Research isn't just optimistic about technology stocks heading into 2026—he's practically euphoric, predicting what he calls a "magical year" for Tesla Inc. (TSLA) and continued dominance from Nvidia Corp. (NVDA) in an AI revolution that's barely getting started.

The Physical AI Thesis

In a recent interview with CNBC International, Ives made it clear he thinks the skeptics will "continue to watch this party from the outside looking through the windows" as the bull market charges ahead. His conviction centers on what he calls the two best "physical AI plays" in the market right now: Tesla and Nvidia.

For Tesla, Ives sees 2026 as a turning point. CEO Elon Musk is shifting the company's focus toward autonomy and robotics, and Ives believes this pivot is worth paying attention to. He's not being subtle about the stakes either—he asserts that autonomous driving technology alone adds a trillion dollars to Tesla's story. The kicker? He argues that global competitors simply can't match Tesla's robotaxi buildout.

Meanwhile, Nvidia, under Jensen Huang's leadership, continues to provide the foundational infrastructure powering the entire tech boom. If Tesla represents the application layer of physical AI, Nvidia is the engine room making it all possible.

It's Only 10:30 PM at the AI Party

Despite the massive tech rally we've witnessed over the past few years, Ives insists we're nowhere near the end. Using a metaphor that's probably a bit too relatable for anyone who's ever stayed out too late, he explained: "It's still 10:30 p.m. at that AI party that goes to 4 a.m."

Ives called his own forecast of another two years for this tech bull run "conservative," which should tell you something about his confidence level. He's predicting the Nasdaq could reach between 25,000 and 30,000 over the next 12 to 24 months. For context, that would represent a substantial leap from current levels.

The next phase of this rally, according to Ives, involves gains spreading beyond the hyperscalers like Microsoft Corp. (MSFT) and Alphabet Inc. (GOOG) (GOOGL) to what he calls "second and third derivatives." He's highlighting software companies such as Palantir Technologies Inc. (PLTR), MongoDB Inc. (MDB), and Snowflake Inc. (SNOW) as emerging beneficiaries of the AI infrastructure buildout.

Buckle Up, But Don't Bail Out

Ives isn't naive about the road ahead. He acknowledges there will be "white knuckle moments" driven by geopolitical tensions or regulatory challenges. But here's where his bull thesis gets interesting—he views these inevitable periods of volatility not as reasons to head for the exits, but as opportunities to scoop up shares of the winning companies in what he calls the AI arms race.

It's a buy-the-dip philosophy grounded in the belief that the fundamental transformation underway in technology is real and durable, even if the path forward includes some stomach-churning swings along the way.

ETF Options for AI Exposure

For investors looking to gain exposure to the AI theme without picking individual winners, here are several technology-focused ETFs worth considering:

The performance numbers show that tech-focused funds have delivered substantial returns, with some ETFs up more than 50% over the past year. Whether that momentum continues depends largely on whether Ives is right about the AI revolution still being in its early stages, or whether the bears watching from outside the window will eventually be proven correct.