In a bold forecast, Dan Ives, Managing Director at Wedbush Securities, anticipates a robust 20% to 25% increase in tech stocks throughout 2026. This growth is expected to be propelled by the expanding monetization of artificial intelligence (AI) within both consumer and enterprise sectors. Key players like Tesla and Nvidia are leading the charge in physical AI, with the upcoming CES 2026 set to highlight advancements in robotics and autonomous technologies.
Ives pointed out that only 3% of U.S. companies have currently adopted AI, suggesting a vast potential for broader enterprise integration as we progress through 2026. The forecast includes a staggering $600 billion in capital expenditures from major tech companies, with Meta, Nvidia, and Microsoft poised to expand their AI-related acquisitions and initiatives.
During an interview with Bloomberg, Ives referred to 2026 as a “proof year” for AI, emphasizing that investors are entering a new phase of the investment cycle. He elaborated, “It”s about second, third, fourth derivatives playing out,” indicating a deeper integration of AI technologies in both physical and enterprise applications. The CES event will showcase significant innovations, with a spotlight on robotics, autonomous vehicles, and consumer AI applications.
Ives expects Nvidia CEO Jensen Huang to deliver a keynote at CES, focusing on advancements in physical AI, including autonomous robotics. As Tesla embarks on an “autonomous chapter,” the monetization of its vehicle AI is anticipated to gain traction. Despite the current low adoption rate of AI in U.S. companies, Ives believes that 2026 will mark a pivotal shift towards more widespread integration.
The competitive landscape remains fierce, with Ives highlighting an “arms race” among big tech firms. He predicts further acquisitions in 2026 across various sectors, particularly in enterprise and energy. Microsoft is expected to leverage its existing customer base to gain an edge in enterprise AI, with projected revenues of $25 billion to $30 billion from AI-related products, which Ives notes are not yet fully accounted for in Wall Street forecasts.
China”s influence in AI is also growing, especially in robotics and semiconductor development. Companies like BYD and Huawei are becoming increasingly prominent, with BYD“s chip division recently filing for an IPO. Ives noted that the presence of Chinese firms at CES is expected to double compared to previous years, reflecting China”s narrowing gap in AI technology.
Ives concluded that the battle for AI leadership between U.S. and Chinese companies will intensify throughout 2026, with ongoing acquisitions of U.S. chip technology by Chinese firms expected where regulations allow. He affirmed that Nvidia remains significantly ahead of its competitors, despite the challenges posed by export restrictions.
