Dan Ives: AI Software in 'Golden Age'

Wedbush Securities' Dan Ives, who this month launched an artificial intelligence exchange-traded fund, believes software is the AI subcategory to watch, calling it a "golden age."

Ives, the firm's global head of technology research, told CNBC's "ETF Edge" this week that software will drive many use cases.

Ives, who runs the Dan Ives Wedbush AI Revolution ETF (IVES), aims to focus on stocks transforming the AI landscape. He stated that the market is underestimating the growth of the AI revolution in tech and that it's about identifying AI names beyond the obvious ones.

He anticipates Oracle will be "the epicenter of the AI theme over the next six, nine, 12 months in terms of software." Oracle shares have increased almost 62% over the past two months as of Tuesday's market close and is IVES' fourth-largest holding, according to the firm's website.

IVES' other software holdings include Palantir, IBM, and Salesforce. Palantir shares have increased more than 47% over the past two months.

IVES' holdings cover 30 companies across multiple industries, including hyperscalers, cybersecurity, consumer platforms, and robotics. The list was compiled from his deep dives into major AI players, he said.

Ives noted that investors worldwide are looking for ways to invest in AI, and his research aims to provide accessible options.

The fund's top three holdings are Microsoft, Nvidia, and Broadcom, with smaller tech names like SoundHound and Innodata also included. IVES is up almost 3% since its June 4 launch and has $183 million in assets under management as of Tuesday's market close, according to an email Ives sent to CNBC.

Ives plans to reevaluate the AI 30 every quarter, adding that names could be added as they become more prominent in AI.

Ives believes the tech trade is still a worthwhile investment, even for those who have missed previous opportunities, arguing that focusing solely on valuation can lead to missing out on transformational tech stocks.