Wedbush's Dan Ives says Wall Street is underestimating AI-driven growth

Market Outlook & Investment Opportunities - The tech sector is expected to have a bullish earnings year, driven by the explosion of AI use cases [2] - Software and cybersecurity are expected to significantly outperform across all of tech in the second half of the year [4] - The industry anticipates tech stocks to rise another 12-15% in the second half [2] - Any selloffs in the semiconductor sector should be bought, as demand still outstrips supply by a factor of 10 to 1 for AI chips from Nvidia [9] Company Performance & Projections - Microsoft's market cap could reach $5 trillion in the next 18 months, along with Nvidia [2] - Microsoft is projected to generate $330-340 billion in revenue next year [5] - Azure revenue is expected to accelerate by 200-400 basis points over the next 6-12 months [6] - AI could represent 15-20% of Microsoft's overall revenue next year [6] - The street is potentially underestimating Microsoft's numbers by 10-15% [7] AI Revolution & Market Stage - The AI revolution is considered to be in its second inning, with stocks potentially peaking in the sixth or seventh inning, suggesting a run through most of the next year [10][11] - Only 4% of enterprises in the US have spent on AI, indicating a significant capex explosion [11]