Dan Ives Predicts 'Magical 2026' For Tesla And Nvidia, Says Bears Are Still Watching From 'The Window'

Wedbush Securities Global Head of Tech Research Dan Ives remains steadfastly bullish on the U.S. technology sector heading into 2026, forecasting a “magical year” for Tesla Inc. (NASDAQ:TSLA) and identifying Nvidia Corp. (NASDAQ:NVDA) as a continued leader in what he views as only the early stages of an artificial intelligence (AI) revolution.

‘Physical AI’ Leaders

Speaking to CNBC International, Ives dismissed market skeptics, suggesting tech bears will “continue to watch this party from the outside looking through the windows” as the bull market intensifies.

Ives pinpointed Tesla and Nvidia as the market's two best “physical AI plays.” For Tesla, he anticipates 2026 will be pivotal as CEO Elon Musk shifts focus toward autonomy and robotics.

Ives asserts that autonomous driving technology alone is worth a trillion dollars to the Tesla story, arguing that global rivals cannot match their robotaxi buildout.

Meanwhile, he views Nvidia, led by Jensen Huang, as continuing to lead the foundational infrastructure of the tech boom.

See Also: Wall Street Bull Says Apple Is Ready To Explode — 26% Rally Seen As iPhone 17 And AI Upgrade Cycle Kick In

The Party Is Just Starting

Despite the significant tech rally over the last few years, Ives insists the trade is far from over. Using a metaphor for the AI revolution, he stated, “It’s still 10:30 p.m. at that AI party that goes to 4 a.m.”

Ives called his own projection of another two years for this tech bull run “conservative,” predicting the Nasdaq could reach between 25,000 and 30,000 over the next 12 to 24 months.

The next phase involves the rally spreading beyond hyperscalers like Microsoft Corp. (NASDAQ:NVDA) and Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) to “second and third derivatives,” highlighting software companies such as Palantir Technologies Inc. (NASDAQ:PLTR), MongoDB Inc. (NASDAQ:MDB), and Snowflake Inc. (NYSE:SNOW) as emerging beneficiaries.

Navigating Volatility

While acknowledging the inevitability of “white knuckle moments” stemming from geopolitical tensions or regulatory hurdles, Ives views these periods not as threats, but as opportunities to acquire shares of the winning companies in the AI arms race.

Here are a few AI-linked ETFs for investors to consider.

ETF Name	YTD Performance	One Year Performance
iShares US Technology ETF (NYSE:IYW)	28.30%	23.91%
Fidelity MSCI Information Technology Index ETF (NYSE:FTEC)	25.57%	21.97%
First Trust Dow Jones Internet Index Fund (NYSE:FDN)	12.20%	6.54%
iShares Expanded Tech Sector ETF (NYSE:IGM)	31.25%	26.92%
iShares Global Tech ETF (NYSE:IXN)	27.91%	25.10%
Defiance Quantum ETF (NASDAQ:QTUM)	40.14%	51.07%
Roundhill Magnificent Seven ETF (BATS:MAGS)	24.06%	17.59%

Read Next:

• Dan Ives Reveals Buyout Watchlist Including C3.ai, SanDisk, Lyft, Qualys And More: ‘M&A Floodgates Are Opening'

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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