TLDR
- Only 3% of US companies have adopted AI technology while global adoption sits under 1%, leaving massive room for growth according to Wedbush analyst Dan Ives
- Ives selected 10 companies as core AI infrastructure plays including Nvidia, Microsoft, Palantir, AMD, Tesla, Apple, Meta, Alphabet, CrowdStrike, and Palo Alto Networks
- AI capital expenditures projected to reach $550-600 billion by 2026 as enterprise and government spending accelerates across the technology sector
- Current AI leaders generate hundreds of billions in cash flow with real infrastructure, contrasting sharply with dot-com era companies that lacked viable business models
- Amazon, Salesforce, IBM, and Intel excluded from top tier list but remain in Ives’ broader AI investment category as supportive players
Wedbush Securities analyst Dan Ives released a research report stating AI stocks remain undervalued. The analyst points to adoption rates as evidence the market has substantial growth ahead. Just 3% of American companies use AI in their business operations.
Global AI adoption registers below 1% according to Ives’ research. The low penetration rates suggest the technology sector has years of expansion potential. Less than 5% of US businesses have implemented AI systems in any form.
Ives compiled a list of 10 companies he considers essential to AI infrastructure. The selections span chip manufacturing, cloud computing, software, and cybersecurity. Each company fills what Ives describes as an indispensable role in the AI economy.
Core AI Stock Picks for 2026
Microsoft tops the list for enterprise AI tool adoption. Palantir provides AI software to government agencies and large corporations. Nvidia manufactures chips that power most major AI projects across the industry.
Microsoft Corporation, MSFT
AMD competes directly with Nvidia in the chip market and stands to capture market share. Tesla’s selection focuses on autonomous driving technology and robotaxi development. Apple makes the list based on its consumer device ecosystem and AI integration capabilities.
Meta’s early AI investments are generating financial returns as monetization improves. Alphabet develops the Gemini AI model and produces proprietary chips for internal use. CrowdStrike offers AI-powered cybersecurity that enterprises increasingly require. Palo Alto Networks uses AI to connect security products and drive revenue growth.
Meta Platforms, Inc., META
Spending Forecast Reaches $600 Billion
Capital expenditures for AI technology will hit $550 billion to $600 billion by 2026. The projection includes spending from private sector companies and government organizations. Enterprise buyers represent a growing share of AI investment dollars.
Chip supply cannot meet current demand levels according to Ives. Nvidia receives orders that exceed its production capacity. The company supplies AI chips to Amazon, Google, and Microsoft for their data centers.
Ives worked as a tech analyst during the dot-com bubble in 1999. He says current market conditions differ from that era. Tech stocks then traded at 30 times revenue with unproven business plans.
Today’s AI leaders generate hundreds of billions in actual revenue. Companies operate with established infrastructure and customer bases. Real demand drives valuations rather than speculation according to the analyst.
Amazon, Salesforce, IBM, and Intel did not make Ives’ top 10 list. The companies remain in his broader AI investment universe. However, Ives views their positions as supportive rather than foundational to AI growth.
Supply constraints for AI chips indicate genuine market demand. The imbalance between orders and production capacity suggests the industry hasn’t peaked. Government spending will add another layer of demand as agencies implement AI systems.
The analyst expects investors are underestimating future AI growth potential. With adoption below 5%, the addressable market remains largely untapped. More companies will deploy AI technology as business cases become clearer and costs decline.
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