NVDA, PLTR, MSFT, AAPL, CRWD: Dan Ives' Top 5 Stock Picks into 2027

Nicole Pedolides (0:01)

Welcome back to The Watch List. I'm Nicole Pedolides. Joining me right now, Dan Ives, Partner and Senior Managing Director, Analyst, Yorkville Ives & Company. So glad you're with us. Great to see you. So let's begin. As you talk about this age, the golden age with the AI revolution growth, this is something that is historical, as you're saying, a different time. Why?

Dan Ives (0:26)

I mean, it's the amount of money that's spent. Because if you look, I mean, we're going to have four to five trillion spent over the next four to five years.

For every dollar spent on CapEx, there's a five to six dollar multiplier across the rest of tech. It just speaks to my view. We are now just hitting the second, third, fourth derivatives of AI.

I just believe investors continue to significantly underestimate the scale and scope of what this is going to look like from an earnings perspective, and fundamentally in terms of a build out over the next 12 to 18 months, which is why we're so bullish on this next stage of stocks.

Nicole Pedolides (1:04)

We think about supply and demand and you're focusing on supply. I mean, I look to see these companies that say they can't even keep up with demand. What is really defining this AI cycle to you?

Dan Ives (1:15)

Yeah, we'll be in Korea next week.

Right now, demand to supply is 13 to 1 for chips. I mean, if you, Nicole, if you actually, right now, if you were a company and you laid out a strategic AI initiative and you said, okay, green light today, you're not implementing it until probably late next year, summer, December of next year, because of the backlog. What that means is that Nvidia, AMD, Microsoft, you look at Alphabet, Amazon, what we've talked about with names like Palantir, there's cyber security names. I mean, this is now, it's a golden age in terms of technology, but also first time in 30 years, US has added China when it comes to tech.

Nicole Pedolides (2:01)

So when I saw in the middle of the week that you had the tech plays for 2027, I know you focus on 49 names that you have coverage of, some of these may be 50 or less or whatever, but you have the Ives 30 that you have, but then you narrow it down to five tech plays. These are the names that people should write down, I guess. Nvidia, Microsoft, Palantir, Apple, CrowdStrike.

Nvidia, let's, I mean, let's touch each one for a few seconds here. Nvidia, Microsoft.

Dan Ives (2:34)

Well, first, Nvidia investors run their estimated earnings, I think, up to 20%.

I mean, there's a stock, we have $300 price target, but you could argue that could go significantly higher than that because physical AI and the true next part, the cycle hasn't even hit yet. Then you go to Microsoft, this is all in their backyard in terms of the enterprise build out, Azure checks have been so robust. It's a stock that could have a six, potentially a seven in front of it, and it just piece the chips hyperscaler. Palantir continues to be our favorite overall software plan. I think that could be a trillion dollar mark cap in next two, three years. Then you think about surface areas expanding, agents are expanding. That's bullish or cybersecurity. CrowdStrike, of course, Palo Alto, being front and center in terms of the beneficiary. And then when it comes to consumer AI revolution, Apple, Cupertino, I mean, they're a toll collector on the AI highway. And I don't think that that's a factor. I think it's worth $75 per share incremental of the stock.

Nicole Pedolides (3:35)

What did you think of some of, so obviously a toll collector you just called to Apple, John Ternes now with the helm. I'm curious to hear what you think, how you think he is doing. We also heard some reports today that the components for the A-T, they're cutting back on that because maybe there's a bit of soft demand. We have the Duo coming out soon. That will be available for the pre-order, the write, the foldable phone, and that we may even have a MacBook with a touchscreen.

How's John Ternes doing? What about some of these specific products?

Dan Ives (4:10)

Well, first of all, if I had a dollar for every report over the last four or five years for a quote unquote iPhone cut to S in terms of supply, that didn't pan out, I'd have a lot more money today. The point is, it just speaks to my view.

I believe iPhone 18 is going to be significantly higher than expectations. So I disagree with maybe some of the stuff. It goes against what we've seen in the supply chain. I think when it comes to turners, I mean, his legacy will be defined by this AI chapter about AI enabled devices. I think 20 percent of the world will ultimately access AI through an Apple device. I think as it's playing out, Nicole, this is one where it's a sleeping giant in terms of what I believe they're about to do when it comes to this next phase of the technology cycle.