Despite all the “bubble” talk about AI trading, the truth is that it continues to defy gravity. That is reflected in the tape, in the profits and in the main voices on Wall Street who agree that the current boom has strength.
Let’s start with the score.
The S&P 500 is up nearly 13% in 2025, and AI-powered tech giants have driven nearly 80% of those gains, led by companies like Nvidia, Microsoft and Alphabet. Plus, there’s the wealth effect, where 30 AI stocks have added nearly $5 trillion to the wealth of American households in the last year, according to JPMorgan.
Plus, when it comes to income, the math speaks for itself.
FactSet effectively pegs S&P EPS growth for 2025 at a magnificent 11%, with stellar Q3 tracking at 8% to 9%, as the “Magnificent 7” delivered 27% EPS growth in Q2, each beating estimates.
Nvidia alone is among the top contributors to third-quarter earnings growth, proving that AI is coming into its own and it’s not just hype. Furthermore, with TSMC’s bullish AI demand outlook and ASML’s strong results, the supply chain continues to bear this out.
However, the concentration is real and that trend is also reflected in profits.
Some strategists expect Nvidia to soon account for a double-digit percentage of the S&P 500, but that’s likely more a reflection of actual capital spending, not dot-com steam. Even Goldman Sachs and Citi see AI exposure expanding to nearly 50% of the index.
That said, veteran tech analyst Dan Ives, who is betting this momentum won’t fade anytime soon, just updated his Big Tech “buy” list for the end of the year.
The names sound familiar, but their reasoning may surprise you.
Dan Ives Sees New Advantages as AI Momentum Increases at Big Tech Companies.Photo by Tasos Katopodis on Getty Images
Daniel Ives doesn’t believe the “AI bubble” narrative. The Wedbush technology analyst even maintains that the AI trading is entering its next bull leg.
He compares the moment to a “Moment from 1996, not 1999” saying that a true industrial-scale transformation is occurring in digital infrastructure.
Despite global tensions and valuation noise, Ives believes it is imperative to focus on the Pure AI demand, use cases and supply chain feedback. that underline the sustainability of the trend.
We think tech stocks will be very strong at the end of the year and could rise another 10% or more as the next part of this AI revolution takes hold.
Despite global tensions and valuation noise, Ives believes it is imperative to focus on the Pure AI demand, use cases and supply chain feedback. that underline the sustainability of the trend.