Dan Ives: 2026 will be key period to show next stage of AI trade from software and cyber

Core Insights - 2026 is predicted to be a significant turning point in the AI revolution, particularly in software modernization and infrastructure buildout [1][2][3] - The technology sector is expected to rise by over 20% in 2026, with large-cap tech stocks potentially increasing by 30-40% [3][4] - An estimated $3-4 trillion will be spent on AI advancements over the next few years, indicating strong growth potential [4] Company-Specific Insights - Microsoft is anticipated to see a stock increase of 30-40% due to accelerated deals in Azure and overall strong performance in the cloud sector [6][7] - Oracle's recent selloff is viewed as overdone, with potential for the stock to reach $250, driven by its strong install base and AI-related growth [8][10] - Apple and Google are expected to announce a formal AI partnership around Gemini, which could significantly enhance their AI strategy and potentially increase Apple's stock value by $75 to $100 per share [12][14] Market Dynamics - The demand for AI solutions is currently outpacing supply at a ratio of 12 to 1 in the U.S., marking a significant shift in the competitive landscape [6] - The market is currently undervaluing the future growth potential of companies involved in AI, with expectations of growth accelerating from 17% to 45% in the coming years [10][11] - The AI revolution is still in its early stages, with significant opportunities for investment in companies like Microsoft, Oracle, and Nvidia, which have recently experienced stock price declines [11]