Former Wedbush analyst Dan Ives is bullish on Nvidia Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), Palantir Technologies Inc. (NASDAQ:PLTR), Apple Inc. (NASDAQ:AAPL), and CrowdStrike Holdings Inc. (NASDAQ:CRWD). He named the five companies as his top tech picks for 2027, with all five carrying Outperform ratings.
Dan Ives believes investors are underestimating a $4 trillion spending wave. We’ll look at Nvidia and Apple to assess which stock has already priced in that growth. The AI spending wave could transform far more than the chip industry. See which 10 stocks made the list of companies that could change the world by 2030.
What Ives Thinks Others Are Missing
According to Dan Ives, supply rather than demand is shaping the current phase of the AI buildout, and the industry is still in its early stages. Goldman Sachs estimates that AI-related capital investment could total $4 trillion to $8 trillion over the next five years.
Ives describes Nvidia as the “foundational compute platform for the AI economy” and has a $300 price target on the stock. He expects AI to contribute to Apple’s device upgrades and service growth, supporting a $400 price target for the stock. So far this year, Nvidia has risen about 27% and Apple about 23%. AAPL’s stock climbed on optimism around its growth prospects, but one key part of its AI strategy still raises questions.
Which Stock Needs Him to Be Right?
Nvidia is more directly tied to the AI spending wave, yet its valuation remains relatively modest.
The stock trades at a forward P/E of just 25.69x, roughly 39% below its five-year average of 42.17x. With EPS expected to grow 95.23% this fiscal year and 70.90% next year, it does not appear to require a perfect spending cycle to justify its valuation.
Apple has a less direct connection to that spending. Its forward P/E stands at 37.78x, about 28% above its most recent historical average of 29.55x. At the same time, EPS growth is expected to slow to 8.51% in fiscal 2027. That premium depends on AI translating into stronger device upgrades and services growth. If AAPL’s valuation depends on delivering stronger growth, investors may want to compare it with other high-quality businesses. See which 10 quality stocks stand out right now, with Apple among them.
In my view, Nvidia looks better positioned for Dan Ives’ spending thesis at the current price. Its valuation seems to allow for a slower outcome, whereas Apple needs the AI opportunity to deliver.
Nvidia’s hedge fund ownership increased from 275 funds at the end of Q1 2026 to 285 funds at the end of Q2 2026. Short interest was just 1.27% of float as of September 15, 2026. Apple’s hedge fund count slipped slightly from 170 to 169, while short interest was only 0.88%.
If Dan Ives’ spending-wave thesis proves correct, Nvidia has the more direct exposure and the lower multiple. Apple still needs to show that AI can drive its growth. With limited short interest in both stocks, investors are giving each the benefit of the doubt.
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