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Spending on AI "is holding up like the Rock of Gibraltar," and Microsoft (MSFT), Amazon (AMZN), and Meta (META) are all still benefiting from the AI Revolution, Dan Ives, a Managing Director and Senior Equity Research Analyst at Wedbush Securities, said recently on CNBC.
A development team working together to create the next version of Windows. Ives specializes in the tech sector. Why Ives Remains Largely Bullish on Big Tech Capital spending within the tech sector "is holding up," while investments in AI in general remain very solid, according to Ives. Further, "tariffs..are not stopping the AI Revolution," and MSFT, AMZN, and META are all poised to benefit from the continued proliferation of AI, the well-known analyst explained. In general, "software is the safety blanket" for investors at this point, while Meta Platforms (META) will also get a significant lift from a resilient ad market, Ives stated. Ives' Bottom Line on Big Tech "Big Tech will be more of a confidence booster this week rather than" feeding the Street's fears, he predicted.
While we acknowledge the potential of MSFT, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.