Veteran Analyst Updates Big Tech’s ‘Buy’ List for the Rest of 2025
Amid all the chatter about whether the Artificial Intelligence (AI) market is in a bubble, the reality is that this market is thriving. It shows no signs of slowing down, as even Wall Street’s most influential voices agree that this AI boom has solid potential. Let’s take a closer look at what’s happening.
Strong Market Performance
The S&P 500, a key indicator of the stock market’s health, is up nearly 13% in 2025. Most impressively, AI-focused tech giants have been responsible for around 80% of this growth. Companies like Nvidia, Microsoft, and Alphabet are leading the charge. According to a report from JPMorgan, 30 AI stocks have collectively added nearly $5 trillion to American household wealth just in the past year.
Earnings results also highlight this trend. FactSet has projected a remarkable 11% growth in S&P earnings per share (EPS) for 2025, with an expected growth of about 8 to 9% in the third quarter. The so-called “Magnificent 7” tech stocks posted an impressive 27% EPS growth in the second quarter, and all of them surpassed market estimates. Nvidia, in particular, is a significant player contributing to growth and proving that AI is real and profitable, not mere hype. Even major players in the supply chain, like TSMC and ASML, are optimistic about AI demand moving forward.
A Shift in Strategy
However, it’s essential to acknowledge the concentration of advantages. Some analysts believe that Nvidia could soon account for a significant percentage of the S&P 500. This isn’t just a fleeting trend; it reflects real, substantial investments in technology. Goldman Sachs and Citi suggest that exposure to AI will increase across nearly half of the index.
Dan Ives, a well-respected tech analyst, recently refreshed his list of recommended Big Tech stocks for the rest of 2025. He is confident that this AI momentum will not wane soon and emphasizes the importance of focusing on genuine AI demand and its practical applications. He likens the current AI status to a “1996 moment,” suggesting that we may be on the cusp of a significant industrial transformation in technology.
Top Picks for Big Tech
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Apple: Untapped AI Potential
- Rating: Buy
- Price Target: $310 (an upside of 25%)
Despite some criticism, Apple remains a favorite for Ives. The company boasts a massive ecosystem of 2.35 billion devices, which provides ample opportunities to monetize AI across its hardware and services. Apple reported a robust fiscal Q3 2025, with record sales of $94 billion, a 10% increase from last year. According to Ives, these figures set the stage for Apple’s next chapter.
Ives believes that Apple’s invisible AI strategy is the “elephant in the room” that could significantly enhance its stock value. New AI features integrated into the iOS and other systems could be game-changers. Ives notes that without an “AI premium” reflected in its stock price, Apple could be one of the most undervalued tech stocks to own as we head into 2026.
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Tesla: Transforming AI into Hardware
- Rating: Buy
- Price Target: $600 (upside of 40%)
For Ives, Tesla isn’t just a car manufacturer but a dynamic AI platform. With a market capitalization of $1.4 trillion, Tesla aims to create a parallel economy dominated by autonomy and robotics. Ives predicts that Tesla will unlock its full AI valuation soon.
Tesla’s ambitious projects, like the Full Self-Driving (FSD) service and Robotaxi programs, are critical for its future growth. Although there was a slight revenue dip recently, Ives is optimistic that the company will soon regain its upward trajectory as it focuses on AI-driven hardware capabilities.
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Salesforce: Enterprise AI Leader
- Rating: Buy
- Price Target: $375 (an upside of 52.5%)
Lastly, Ives highlights Salesforce as an underrated player in the AI space. The company has evolved from customer relationship management (CRM) to a complete enterprise AI solution through its Agentforce suite, which automates various sales and service workflows. Partnerships with companies like OpenAI and Google are strengthening its position in the market.
Salesforce’s revenue for fiscal 2026 has seen a 10% year-over-year growth, proving that businesses are increasingly adopting AI solutions. Ives believes that Salesforce is poised for significant growth as more companies utilize AI for better efficiency and productivity.
Conclusion
Dan Ives is optimistic about the tech market as we head into the end of 2025. His updated Big Tech “buy” list emphasizes companies like Apple, Tesla, and Salesforce, which are well-positioned to benefit from the growing demand for AI. It seems that the future will be driven by innovation in technology, and these companies are leading the way.
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Original Text – https://www.thestreet.com/technology/veteran-analyst-resets-big-tech-buy-list-for-rest-of-2025