Wedbush: The three major tech giants in the US will compete for the first entry into the $4 trillion market value club in the AI field

Zhitong
2024.10.17 00:59
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Wedbush analyst Daniel Ives pointed out that Apple, NVIDIA, and Microsoft are competing in the field of artificial intelligence, and it is expected that one tech giant will surpass a market value of $4 trillion in the next six to nine months. Apple has a market value of $3.56 trillion, NVIDIA $3.23 trillion, and Microsoft $3.11 trillion. Ives predicts that the artificial intelligence infrastructure market will grow tenfold, with capital expenditures reaching $1 trillion in the next three years. Tech stocks are expected to rise another 20% in 2025

According to Zhītōng Finance, Apple (AAPL.US), NVIDIA (NVDA.US), and Microsoft (MSFT.US) appear to be the clear leaders in the artificial intelligence spending race. Wedbush predicts that one of the seven tech giants will reach a market value of $4 trillion in the next six to nine months. Apple currently has a market value of $3.56 trillion, followed by NVIDIA at $3.23 trillion and Microsoft at $3.11 trillion.

Wedbush analysts led by Daniel Ives have made some bold and optimistic predictions about future artificial intelligence spending and infrastructure. Ives stated in an investor report, "We believe that with the establishment of next-generation artificial intelligence infrastructure, the opportunity in the entire artificial intelligence infrastructure market could grow tenfold from today to 2027. We estimate that artificial intelligence capital expenditures will reach $1 trillion in the next three years."

With NVIDIA's chips becoming the cornerstone of artificial intelligence computing, its position in large-scale infrastructure spending has been solidified. Wedbush believes that Microsoft is another core driver of artificial intelligence. Following these two companies, the next wave of beneficiaries will include Apple, AMD (AMD.US), Dell (DELL.US), IBM (IBM.US), Oracle (ORCL.US), Palantir (PLTR.US), Salesforce (CRM.US), and ServiceNow (NOW.US).

Ives added, "In short, we believe that tech stocks will rise another 20% in 2025, as this tech bull market has just entered the next phase led by the artificial intelligence revolution."

Opportunities for Apple Inc.

Apple is now gearing up to capitalize on consumer demand for artificial intelligence with its latest products such as the iPhone 16 and the new iPad mini featuring Apple Intelligence AI capabilities. Despite some pessimistic reports and shipment tracking indicating lower demand for iPhones compared to previous releases, Wedbush expects a surge in iPhone sales this holiday season.

Ives further stated, "We continue to see further signs on the Asian supply chain indicating that this iPhone upgrade cycle could be historic, laying the foundation for a super cycle, as we currently estimate that globally around 300 million iPhones have not been upgraded in over four years. In our view, as the artificial intelligence-driven upgrade cycle begins, Apple's iPhone sales in the 25 fiscal year could exceed 240 million units."

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