Dan Ives Says AI Valuations Do Not Capture 2026 Earnings Potential Yet

• Ives said that recent channel checks indicate that demand for advanced AI processors significantly exceeds available supply.
• Despite the rapid rise in AI-related spending, Ives emphasized that adoption across U.S. businesses remains limited.
• Ives expects technology stocks to rise 20% to 25% in 2026. 

Dan Ives, managing director at Wedbush Securities, addressed the debate over AI-related stock prices on Monday, saying current demand trends strongly favor continued upside.

Speaking to CNBC, Ives said investors are undervaluing the pace of future expansion tied to AI. 

Early Stages Of AI Adoption

Ives noted that consensus forecasts on Wall Street do not fully reflect the earnings impact expected over the next several years, particularly through 2026.

“Street nos are underestimating by 15% to 20% when it comes to 2026.”

-Dan Ives, Managing Director, Wedbush Securities

Ives said that recent channel checks indicate that demand for advanced AI processors significantly exceeds available supply, citing products from Nvidia Corp. (NVDA) as an example. 

“The reality is all our checks are showing demand to supply is 12 to 1,” Ives added. 

According to his assessment, interest from customers seeking AI infrastructure remains far greater than the industry’s ability to deliver chips, creating sustained pricing power and long-term revenue visibility.

Nvidia stock traded over 1% higher in Monday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory amid ‘low’ message volume levels. 

Minimal AI Exposure 

In early December, Ives noted that strong earnings from MongoDB (MDB), Marvell Technology (MRVL), and CrowdStrike (CRWD) reflect a broader tech trend driven by AI adoption. He also added that AI demand is spreading beyond early users and starting to impact many parts of the tech industry.

Despite the rapid rise in AI-related spending, Ives emphasized that adoption across U.S. businesses remains limited. He estimates that only a small fraction of domestic companies have meaningfully implemented artificial intelligence solutions so far, suggesting that the addressable market is still in its infancy rather than nearing saturation.

Ives added that technology stocks are expected to rise 20% to 25% in 2026. 

Also See: Oracle Stock Slide Could Reportedly Be An AI Opportunity For Investors, Says Wells Fargo

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