Wedbush Securities’ Dan Ives recently announced his top picks for 2025 among mega-cap tech stocks.
Dan Ives is a Managing Director and Global Head of Technology Research at Wedbush Securities. He is a frequent contributor to financial news programs and actively posts his latest stock predictions on social media.
Recently, Ives announced his top mega-cap technology stock picks for 2025. Not surprisingly, many of his selections are included in “The Magnificent Seven.”
Below, we examine the individual catalysts in each of these companies and argue why 2025 could be a great time to buy these stocks directly.
1. Tesla
tesla (TSLA -0.05%) Probably the most interesting name on Ives’ list. For most of 2024, Tesla stock underperformed the broader market. However, from the beginning of November, the stock price began to take a parabolic curve. Overall, Tesla stock rose 62% in 2024, nearly triple the S&P 500 and more than double the Nasdaq Composite Index.
The catalyst for Tesla’s recovery?The result of the US presidential election.
In the final months of Donald Trump’s campaign, Tesla CEO Elon Musk has emerged as a surefire surrogate for the Republican candidate. Following President Trump’s victory in early November, Ives said he believed the relationship between Musk and the next president would be a major boost for Tesla’s future.
Specifically, Ives believes the incoming Trump administration could accelerate Tesla’s self-driving and robotaxi plans. While Ives’ outlook makes sense, it’s important to note that Tesla’s stock price already has a lot of upside factored in following the election results.
2. Nvidia
Is it really a surprise to see Nvidia? (NVDA -3.00%) Listed as a top idea for 2025?
Last year, NVIDIA was the best-performing stock in the Magnificent Seven. The stock price rose 171%, valuing the company at more than $2 trillion.
NVDA data by YCharts
Despite this unprecedented move, Ives is looking for more upside for the chip darling.
Nvidia’s biggest tailwind this year comes from its latest GPU lineup, known as Blackwell. Industry analysts claim demand for Nvidia’s new architecture is surging, and 2025 is already looking like another milestone year for the semiconductor leader.
With a $4 trillion valuation within reach, investors consider buying up NVIDIA stock now before the company starts reporting official statistics on Blackwell and its impact on its business. You might want to.
3.Microsoft
I can see Microsoft (MSFT -1.32%) As one of the safest AI opportunities in big tech. Over the past two years, the company has invested billions of dollars in AI infrastructure. This was done through a very important partnership with OpenAI, the developer of ChatGPT.
Microsoft has benefited greatly from ChatGPT, primarily by integrating the service into the Azure cloud computing ecosystem. Despite intense competition from the likes of Amazon, Alphabet, and Oracle, Microsoft has been able to achieve impressive growth that is directly tied to its AI efforts. I believe this trend is only just beginning to bear fruit.
Additionally, Microsoft has an early lead in one of the next big megatrends in AI: agent AI. The company’s agent-based AI virtual assistant, called CoPilot, is used by nearly 70% of Fortune 500 companies.
To me, Microsoft has demonstrated the ability to navigate the competitive landscape and deserves to be the first choice for AI investors.
Image source: Getty Images.
4. Apple
Ives remains bullish on Apple, but (AAPL -2.41%) I’ve had concerns for a while now. Ives said Apple’s new iPhone 16, powered by Apple Intelligence, should encourage customers to upgrade their devices en masse. The idea of an iPhone supercycle makes sense, but I doubt how it would play out in reality.
Apple is late to the AI game, and it’s unclear whether Apple Intelligence offers enough added value to make users upgrade their phones. Remember, Apple’s consumer hardware devices are a bit of a luxury. If your older iPhone is still manageable, Apple’s AI capabilities may not be as much of a selling point as you might expect for a more expensive device.
Prove me wrong on this one, but Apple is the only stock on this list that I’m hesitant about so far.
5. Alphabet
alphabet for me (GOOG -1.14%) (Google -0.98%) is the biggest bargain of the five AI stocks I researched. Like Microsoft, Alphabet has a deep ecosystem that allows it to integrate all kinds of AI-powered services, from cloud computing to workplace productivity tools, advertising, streaming, consumer hardware, and more.
Alphabet has a highly diversified business, and its revenue and profit growth are both trending in the right direction.
GOOGL Revenue (Quarterly) Data by YCharts
However, despite the company’s impressive growth and lucrative AI opportunities, Alphabet trades at only 21.9 times forward earnings, which is lower than the S&P 500’s average forward P/E.
I think investors are still being overly cautious about Alphabet, given the intense competition in the cloud space from Microsoft and Amazon, and the increasing competitiveness of advertising from social media platforms like Meta Platforms and TikTok.
While these concerns are understandable in theory, I think Alphabet’s financial results shown above speak for themselves. To me, investing in Alphabet will continue to outperform the overall market for years to come. I think Alphabet stock is a total bargain right now, and I think there’s an opportunity for long-term investors to buy this stock outright.
Randi Zuckerberg is a former Facebook head of market development and spokesperson, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool’s board of directors. Suzanne Frey, an Alphabet executive, is a member of the Motley Fool’s board of directors. John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Adam Spatacco has held positions at Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
