Dan Ives is managing director and global head of technology research at Wedbush Securities. He regularly contributes to financial news programs and actively posts his latest stock predictions on social media.
Ives recently published his top picks among mega-cap tech stocks for 2025. Unsurprisingly, many of his picks are among the ‘Magnificent Seven’.
Below, I’ll examine the individual catalysts contained in each of these companies and argue why 2025 could be a great opportunity to buy these stocks right away.
Tesla(NASDAQ: TSLA) is probably the most interesting name on Ives’ list. For much of 2024, Tesla shares underperformed the broader market. But starting in early November, stocks started going parabolic. All told, Tesla shares are up 62% in 2024 – almost triple the US S&P500 and more than double the profits in the Nasdaq Composite.
The catalyst that fueled Tesla’s recovery? The results of the American presidential election.
During the final months of Donald Trump’s campaign, Tesla CEO Elon Musk emerged as a steadfast surrogate for the Republican candidate. After Trump’s victory in early November, Ives made it clear that he sees Musk’s relationship with the newly elected president as an important boost for Tesla’s future.
Specifically, Ives thinks the new Trump administration could accelerate Tesla’s plans for autonomous driving and robotaxi. While I think Ives’ prospects make sense, it’s important to note that a lot of upside potential has already been priced into Tesla’s stock price following the election results.
Is it Real surprising to see Nvidia(NASDAQ: NVDA) listed as a top idea for 2025?
Last year, Nvidia was the best-performing Magnificent Seven stock: shares rose 171% and the company’s valuation increased by over $2 trillion!
NVDA data by YCharts
Despite this unprecedented move, Ives is calling for significantly more upside for the chip darling.
This year, Nvidia’s biggest tailwind comes from its latest GPU lineup known as Blackwell. With industry analysts calling for surging demand for Nvidia’s new architecture, 2025 is already looking like another milestone year for the semiconductor leader.
With a $4 trillion valuation within reach, investors might consider snapping up shares of Nvidia now – before the company starts reporting official stats on Blackwell and its impact on the business.
I see Microsoft(NASDAQ: MSFT) as one of the safest AI capabilities in big tech. Over the past two years, the company has invested billions in its AI infrastructure, namely through a crucial partnership with OpenAI, the developer of ChatGPT.
Microsoft has benefited greatly from ChatGPT, mainly by integrating the service into its Azure cloud computing ecosystem. Despite fierce competition from, among others, AmazonAlphabet, and OracleMicrosoft has managed to achieve respectable growth directly tied to its AI initiatives – a trend that I think is only just beginning to bear fruit.
Additionally, Microsoft also has an early lead in one of AI’s next big megatrends: agentic AI. The company’s AI virtual assistant, called CoPilot, is used by nearly 70% of the Fortune 500.
To me, Microsoft has shown its ability to maneuver in the competitive landscape and deserves to be a top choice for AI investors.
Image source: Getty Images.
While Ives remained optimistic Apple(NASDAQ: AAPL) I’ve had my concerns for a while now. According to Ives, Apple’s new iPhone 16 equipped with Apple Intelligence should inspire customers to upgrade their devices en masse. While the idea of an iPhone supercycle makes sense, I wonder how this will play out in reality.
Apple was late to the AI game, and I’m not sure Apple Intelligence provides enough value to encourage users to upgrade their phones. Remember, Apple’s consumer hardware devices are a bit of a luxury. If your old iPhone is still manageable, Apple’s AI features may not be enough of a selling point to splurge on a more expensive device.
While I’d love to be proven wrong on this point, Apple is the only stock on this list that I’m hesitant about right now.
For me, Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL) is the biggest buy among the five AI stocks I examined. Like Microsoft, Alphabet has a deep ecosystem into which it can integrate all kinds of AI-powered services – from cloud computing to workplace productivity tools, advertising, streaming, consumer hardware and more.
Alphabet is a highly diversified company and the company’s revenue and profit growth are both moving in the right direction.
GOOGL earnings (quarterly) data by YCharts
But despite the company’s impressive growth and lucrative AI capabilities, Alphabet only trades at a price-to-earnings ratio of 21.9 – that’s lower than the S&P 500’s average price-to-earnings ratio.
I think investors remain overly cautious when it comes to Alphabet given the intense competition in the cloud space from Microsoft and Amazon, as well as the increasing competitive forces in social media platform advertising offered by Metaplatforms and TikTok.
While I understand these concerns in theory, I think Alphabet’s financial results shown above speak for themselves. As far as I’m concerned, an investment in Alphabet will continue to outperform the broader market in the coming years. I think Alphabet stock is an outright bargain right now, and I see an opportunity for long-term investors to buy the stock hand over fist.
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See 3 “Double Down” Stocks »
*Stock Advisor returns January 6, 2025
Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. The Motley Fool holds positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Oracle and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.
Here Are the Top 5 “Magnificent Seven” Stocks to Buy in 2025, According to a Wall Street Analyst, originally published by The Motley Fool
