Ives also highlighted the contrast between Alphabet and Microsoft's cloud divisions, with Microsoft's cloud unit accounting for a larger portion of its revenue and demonstrating strong growth. He attributed Microsoft's dominant position in AI to its significant investments in OpenAI. Ives also predicted that the AI boom would benefit tech companies in both the U.S. and China, despite the growing economic split between the two nations.
Key takeaways:
- AI is considered the biggest transformational tech trend and is expected to drive the next tech bull market, according to Wedbush Securities managing director Dan Ives.
- Despite recent stock dips for companies like Meta and Alphabet, Ives believes that tech companies are starting to see real revenue from their AI businesses, with Microsoft being a prime example.
- Alphabet's stock drop was largely due to its cloud division missing revenue expectations, which is seen as a proxy for the company's ability to profit from AI. However, Ives views this as an opportunity to buy tech stocks on the dip.
- Microsoft is seen as a leader in profiting from AI, with its cloud business accounting for a significant portion of its revenues. The company's investment in OpenAI and the closing of its Activision-Blizzard merger are expected to further strengthen its position in AI.