Dan Ives: AI Software in 'Golden Age'

Dan Ives Highlights the 'Golden Age' of AI Software

Dan Ives, the global head of technology research at Wedbush Securities, has declared a "golden age" for AI software, emphasizing its pivotal role in driving innovation and investment opportunities in the tech sector. Ives, who recently launched the Dan Ives Wedbush AI Revolution ETF (IVES), believes that AI software is the key subcategory to watch, as it powers numerous emerging use cases.

In an interview with CNBC's "ETF Edge," Ives explained that software will be the cornerstone of the AI revolution, transforming industries and creating significant value for investors. He noted that the market is underestimating the growth potential of AI, particularly in identifying less obvious but impactful AI-driven companies.

Focus on Transformative AI Tech Stocks

Ives' AI Revolution ETF aims to capitalize on stocks that are transforming the AI landscape. One of his top picks is Oracle, which he predicts will be at the epicenter of the AI theme over the next six to twelve months. Oracle's shares have surged nearly 62% in the past two months, reflecting growing investor confidence in its AI capabilities.

Other notable software holdings in the IVES ETF include Palantir, IBM, and Salesforce. Palantir, in particular, has seen its shares rise by over 47% in the same period, demonstrating the strong momentum in AI-focused tech stocks.

Diversified AI Investment Strategy

The IVES ETF covers 30 companies across various industries, including hyperscalers, cybersecurity, consumer platforms, and robotics. Ives compiled this list through in-depth research into major AI players, ensuring a diverse portfolio that captures the breadth of the AI revolution. According to Ives, investors worldwide are actively seeking ways to invest in AI, and his ETF provides accessible options to participate in this growth.

The fund's top three holdings are Microsoft, Nvidia, and Broadcom, with smaller tech companies like SoundHound and Innodata also included. Since its launch on June 4, the IVES ETF has seen a nearly 3% increase and now manages $183 million in assets.

Future Outlook and Reevaluation

Ives plans to reevaluate the AI 30 holdings every quarter, allowing for the inclusion of new names as they become more prominent in the AI space. He believes that the tech trade remains a strong investment opportunity, even for those who may have missed earlier market entry points. According to Ives, focusing solely on valuation can lead investors to overlook transformational tech stocks.

As the AI revolution continues to unfold, Ives' insights highlight the potential for significant growth in AI software and related tech stocks. His strategic approach to AI investment positions the IVES ETF as a key player in the evolving AI landscape.