Dan Ives joins us in person in studio, global head of tech research at Wedbush Securities, and Arjun is also going to join for the conversation. Dan, fantastic to see you in the flesh and thank you for stopping in. Well, let me kick off with a broad brush question as we head into 2026. I think many would describe you as a permabull on the tech sector in the US. Anything change heading into 2026, or still pretty bullish on the space?
Look, the reality is it's still 10:30 p.m. at that AI party that goes to 4 a.m. Because look, in my view, when you look at this AI revolution, it's now going to the second, third, fourth derivatives: software, cyber security, infrastructure, power. And look, I think the bears, they're just going to continue to watch this party from the outside, looking through the windows.
Is it the hyperscalers that are going to continue to lead the AI trade, or are we going to see more diversification into other layers in 2026?
Yeah, look, it all starts with the Godfather of AI, Jensen, Nvidia, and now getting, you know, back into China. That's just another pop-the-champagne moment for them. But then you look at hyperscalers, you look at Microsoft, you look at everything that happened, Alphabet, Google — I mean, that's really been a massive turnaround story, right? I mean, I'd say the cab driver here in London was bearish on Google going into the beginning of the year. Now, I mean, you're seeing it, and I think you're just starting to see that in Amazon as well. But look, it's now going to spread use cases. That's why Palantir, in terms of what we're seeing there, MongoDB, Snowflake — I think that's going to be the trend here as the derivative beneficiaries of AI spread.
Dan, given that thesis on the derivatives, how much longer do you think this tech bull run has to go?
Two more years. I mean, and I think that's conservative. I believe we're going to be talking about NASDAQ 25,000, 30,000 over the next, you know, 12, 18, 24 months. Look, this is a fourth industrial revolution. As someone like myself that covered tech stocks in the late '90s, you'll hear all the comparisons. It's apples and oranges. We're talking about humanoid robotics, autonomous — the consumer AI revolution hasn't even started, and that's going to go through Cupertino. I think that's why you're seeing Apple make those major changes, and now you're seeing a cooling of tension in the US and China, that's bullish in terms of the AI trade.
Dan, in terms of two years then, sort of what I guess pulls back that bull run, what derails it to some extent, you know, in these cycles that we see in markets?
Yeah, look, we're going to have these white-knuckle moments. I mean, you're talking about the DeepSeek moment, Liberation Day, US-China, you know, in terms of some of the back and forth — Nvidia, can they go from the US into China or not? But look, those white-knuckle moments, those just create the opportunities to own the winners in AI. And that continues to be our view. Call it perma-bullish, but the reality is I think investors are underestimating the scale and scope of what this tech trade looks like.
Carol's going to jump into the conversation. Dan, let's talk about specific stocks here. I know you love Apple because you say 2026 is going to be the year when it comes to the AI revolution, and Cupertino is going to be a game changer. Elaborate on what you foresee for the company next year.
Look, I think that you're seeing massive changes within Cupertino. I mean, they're ripping the band-aid off in terms of what we're seeing from a culture perspective. You've seen change at the top, which they needed to, right? I think that's been part of the frustration. The last events at Apple Park, I felt like Michael J. Fox in Back to the Future, you know, because they're just really not going anywhere. Now, it's all about Google Gemini. That's going to be a key partnership. Then ultimately you're going to see probably a paid subscription service as they launch into the spring, and you have the biggest install base in the world. Monetization is going to be key for Apple. The consumer AI revolution runs through Cupertino.
So how much upside is there in the stock currently? It's sitting at 277. What's your price target?
350. But look, I think if they get this right, you could have a four in front of it. I think that's ultimately where we see Apple heading as this all plays out, because when you start to put the monetization of AI and you put numbers together, I think it's $75 to $100 per share that AI adds to Apple. And look, it goes back to Google, right? I mean, you go back six, nine months ago, everyone's like, AI is going to ruin their business model, they're on the defensive, back against the wall. Now look at it, right? And I think it just speaks to how quickly this tide could turn.
