Unmissable Investment Chance in a Decade: Top AI Company Shares Advised by a Wall Street Expert in 2025
In the realm of tech forecasting, Dan Ives from Wedbush Securities truly shined in 2024, notably predicting the Nasdaq Composite reaching an astounding 20,000 by 2024. The impetus? The booming artificial intelligence sector propelling technology stocks skyward. Ives remains optimistic in 2025.
The history of industrial revolution unfolded through advancements in steam power, electricity, and microprocessors, and Ives believes AI will serve as the catalyst for the forthcoming revolution. Such opportunities don't surface often, perhaps arriving once in a decade, or even less.
During a Bloomberg interview, Ives picked Nvidia as his top stock pick for 2025. Why? The company's central role in the AI economy. Let's dive deeper.
Nvidia: The Backbone of AI
Nvidia's Graphics Processing Units (GPUs) are the crème de la crème in accelerating complex tasks, like training large language models and running AI applications. With a market share of 70-95% in AI accelerators, the chipmaker is untouchable for many. Forrester Research even credits "Nvidia's GPUs" for making modern AI feasible.
Analysts at Morgan Stanley see no imminent challenge to this dominance, expecting Nvidia to maintain its position for two to three years. One reason: the CUDA platform, a robust ecosystem of codes, libraries, and pretrained models that simplifies AI application development.
Another factor: Nvidia's full-stack approach to accelerated computing. It offers a range of products, including CPUs, interconnects, and networking equipment, letting the company build systems with a lower total cost of ownership.
Susquehanna analyst Christopher Rolland declared Nvidia the "world's de facto enabler of AI." The success? Vertical integration allowing Nvidia to offer an unmatched AI ecosystem. Overcoming this advantage may be as complex as developing an entire ecosystem from scratch.
In the Wake of an AI Revolution
Dan Ives recently heralded the entry of AI into a new phase of growth, with Nvidia as the foundation for this revolution. He pinpointed two factors capable of boosting Nvidia shares: the Blackwell GPU and physical AI.
The Blackwell is Nvidia's next-generation architecture. Compared to Hopper, it can complete AI training tasks up to four times faster and AI inference tasks up to 30 times faster. Production for Blackwell started ramping up in 2025's fourth quarter, offering substantial revenue to Nvidia this year.
Jensen Huang, CEO of Nvidia, identified the Blackwell architecture as a possible record-breaker, predicting it will be "the most successful product in our history and even in computer history." At the 2025 CES, he revealed, "The next wave of AI is here. Robotics powered by physical AI will revolutionize industries."
Ives sees a $1 trillion opportunity in physical AI, as self-driving cars and robotics emerge as significant markets within the following decade. Importantly, Nvidia has already secured an early lead in this domain, boasting a full-stack computing solution for autonomous robots.
Nvidia Stock: A Surprisingly Affordable Deal
Nvidia's place among top 2025 stock picks is not exclusive to Ives. Harsh Kumar at Piper Sandler also named Nvidia as his top large-cap pick, praising its central position in AI accelerators and upcoming Blackwell architecture launch.
Wall Street expects Nvidia's adjusted earnings to surge by 39% annually through 2027. Considering this growth, Nvidia's valuation at 55 times adjusted earnings appears reasonable. But Ives questions the consensus figure, suggesting that the figures may be underestimated by 30% over the next few years.
Investors seeking exposure to the AI sector may feel comfortable acquiring a small position in Nvidia. However, diversifying the portfolio with a basket of AI stocks covering various sub-sectors would be more prudent.
In the realm of investment opportunities, Dan Ives sees Nvidia's central role in the AI economy as a promising avenue, making it his top stock pick for 2025. Analysts at Morgan Stanley foresee Nvidia maintaining its dominance in AI accelerators for at least two to three more years due to its robust ecosystem and full-stack approach.
Given Dan Ives' optimism about Nvidia's future, and the analysts' predictions, investing in Nvidia stocks could be an attractive proposition for those interested in the AI sector, offering potential returns while diversifying one's portfolio.
