Expect 'massive' Q2 earnings for AI chip stocks: Dan Ives

Wedbush is out with a bullish call on Palantir (PLTR), raising its price target to $50 for 2025 amid a heated AI race. Wedbush senior equity analyst Dan Ives joins Market Domination to discuss the call and how other Big Tech players are fairing in the AI race.

"The AI revolution's here. And when I look at the next step, the use cases, Palantir, I think, is going to really be the one that's front and center in a lot of these deals," Ives argues, calling the company the "Messi of AI."

He points to IP (intellectual property) conversion as a major growth area alongside its commercial and government businesses. He adds, "I don't know how you could have a basket of AI stocks and just dismiss Palantir."

Broadening the conversation, Ives expects a "massive tech earnings season" for semiconductors: "There's no denying this AI revolution is probably the biggest tech trend we've seen in the last 40, 50 years."

Apple (AAPL) is the latest player to enter the AI game, announcing its plans to integrate OpenAI's large-language model into its platforms. Ives states that despite skeptics, the new AI abilities are leading to rising demand for the iPhone 16.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Melanie Riehl

Video transcript

Wedbush out with a new bullish call for palant raising its bull case price target on the stock to $50 for 2025 notes saying that the messy of A I is in a prime spot for the A I revolution for more.

We are now bringing in the analyst behind.

Find that note, Dan Ives, senior equity analyst at Wedbush, Dan.

It is good to see you sue this note, Dan um you maintain the out form the target's 35 but the new bull case is 50 for 2025.

Walk us through that note, Dan, how come?

Yeah, Josh the A I revolutions here and when I look at the next step, the use cases palent here I think is gonna really be the one that's front and center in a lot of these deals.

And we're seeing that through a lot of these cloud channels, a lot of the work we do in bootcamps, investors.

Look if you've seen they're negative at six, they hate it at 12, despise it at 18 and screaming at 25.

And I think this is a stock that has a massive move ahead of it.

Given where the A I revolution is heading and that's why it's the messy of A I um I was curious, Dan reading your note, um what had changed or what different information that you had to take you to that bull case because it, it looks similar to the case that you have made before for the stock.

So uh was there more data that you were gathering to get you to 50 here?

Yeah.

ju it's just in the almost 100 customers that we've spoke with.

The conviction levels increasing.

I think deals accelerating.

And I think what we're seeing on a IP conversion is even stronger than we expected.

Now, does that mean for this quarter for next quarter?

When I look out the next 6, 12 months on Punier?

I, I think this is gonna be a golden child of A I and right now, I mean, institutionally speaking, it's very negative because I think many don't understand or appreciate the true and what I view as the competitive mode that Carp and Poer built what, you know, it was interesting.

Uh Dan, I was talking uh not too long ago with Brent till over at uh Jeffreys and covers Poier and he, you know, he was encouraged by what he saw in Pound's business and fundamentals, but he, he was staying on the sidelines and it was a valuation call.

He just thought it looked pricey but you, you don't share those concerns here.

You jo I get the valuation and argument but it's very similar to how I viewed Microsoft and Apple and has so many other names that you have to view it as a sum of the parts.

You got to view it on.

What's the commercial business worth?

What is A IP gonna drive and then put some multiple in the government business.

And I think when you start to put those together, I mean, you could start, I mean, 30 fives are base case, but then you start to get to bocas $50 into next year as this goes to the 2nd, 3rd, 4th derivative.

And I don't know how you could have a basket of A I stocks and just dismiss palent here.

I mean, that, that, that's sort of our view and that's been our conversations with investors even though it's a very contentious name.

Um Dan, I'm sure you're aware of some of the chatter, you kind of referred to it that's out there lately.

There is some skepticism creeping out there on A I um Edison Lee over at Jeffrey's just writing today.

Uh That what we're seeing right now in tech in terms of the selloff isn't actually about geopolitics.

It's not actually about concern over China and Taiwan, it's actually about concern over A I's return on investment.

Um I, I know you don't agree with that clearly, but, you know, are people, what do you think that's about?

Is, is it just that people are getting impatient here.

What do you think?

Or do you think that they have a point?

I mean, look, this sell off, I can tell you from all my conversations the last 48 hours.

It's the Trump Taiwan China word, right?

I mean those comments and obviously he'll speak tonight, you know, and then you factor in what potential Trump second term.

What does that mean in terms of the A I trade?

So I think that's this sell off.

But Julie, I think when me and Josh talk in the next few weeks and Josh is wearing his pink sports jacket, I, I think we're gonna have a massive tech earning season for tech for semis for software that changes the narrative.

But I always say, I mean, you can see A I on your spreadsheets or in the 10th floor of the New York City office building.

And I think that's why we, you know, we spend so much time around the globe and there is no denying this A I revolution is probably the biggest tech trend we've seen in the last 4050 years.

Switching gears here, Dan.

Another name you cover, I wanna get your, your take on Apple because we did have, you know, well known analyst Ming Qi Kuo um was writing today that there's been these sort of these rumors of increased orders for iphone 16 from time to time.

But uh looking at recent earnings calls from some Apple suppliers saying, you know, hinting that the iphone 16 orders may not have increased.

Where, where are you on Apple?

A as we head into that earnings print as well.

Dan, you judge many yell fire in a crowd theater on Apple.

You know what 1 61 70.

So I get it at 230.

You know, people are gonna double down those calls.

I mean all of our check show rising demand for iphone 16.

The A I story is coming to Cupertino.

I think a lot of investors have been caught off sides on this one and I think a year from now we have a $4 trillion market cap.

But again, I get the skepticism.

A lot of haters in Apple at 1 51 60 at 230 they, they really hate it.

Dan.

Good to see you.

We'll, we'll rejoin you soon with the pink jacket on uh on my esteem co I could see whip in wearing that pink or purple sports shirt.

I want that shirt, Dan, I want that shirt.

That's what I want for Apple Day.

I'm I'm bringing it to you.

I know I can count on you.

I'm so excited about this.

Thank you, Dan.