Artificial Intelligence isn’t just another tech trend; it’s a generational shift, a technological wave on the scale of electrification or the birth of the internet. That’s the high-level vision from Dan Ives and the Wedbush Research team in their latest AI Revolution institutional report. Ives calls this a “1995 moment”: a pivotal point where early movers could reap long-term rewards, just like investors did at the dawn of the internet era.
The launch of ChatGPT in late 2022 marked the iPhone moment for AI, catalyzing a tidal wave of enterprise adoption, platform buildout, and generational capital investment. AI is now moving from concept to infrastructure. According to Wedbush, this is the start of the Fourth Industrial Revolution, and the economic transformation ahead will reshape industries globally.
Already, corporate spending has undergone a seismic shift: in 2024, AI went from pilot to priority, jumping to 8–10% of total IT budgets. Ives forecasts over $1 trillion in AI-related spending in the next decade — and that’s just the beginning. The report underscores that for every $1 spent on foundational AI hardware (like Nvidia chips), an estimated $8–$10 in ecosystem value is being generated across software, platforms, and services.
Sector Spotlights From the Report
Semiconductors: The AI race starts with chips. Wedbush highlights semiconductors as the engine room of the entire AI economy, driven by the GPU and ASIC needs of hyperscalers, robotics, and enterprise deployments. Nvidia leads the charge, with AMD, TSMC, and others ramping up to meet global demand. Tickers: NVDA, AMD, TSMC, MU, AVGO
Hyperscalers: Hyperscalers are racing to deploy LLM infrastructure and monetize AI via cloud services. Microsoft, Amazon, and Google are leading AI CapEx with more than $325 billion planned. These platforms are also incubating the next wave of enterprise AI use cases. Tickers: MSFT, AMZN, GOOGL, ORCL
Software: 2025 marks the transition to broad enterprise AI adoption. Generative AI and agentic software are moving into core workflows. Palantir, Snowflake, and others are positioned at the intersection of infrastructure and intelligence. Tickers: PLTR, SNOW, AI, CRM, ESTC, MDB, ADBE, NOW, IBM, PEGA, INOD, SOUN
Consumer Internet: Consumer platforms are infusing AI into devices, services, and recommendations. Meta and Apple lead in GenAI-enabled wearables and assistants, while Amazon and Alibaba accelerate AI across e-commerce and media. Tickers: META, AAPL, TSLA, BABA, BIDU
Cybersecurity: With AI-driven threats on the rise, AI-native cybersecurity is no longer optional. Zscaler, Palo Alto Networks, and CyberArk are highlighted as core beneficiaries of a 20%+ increase in cyber-AI budgets. Tickers: ZS, PANW, CYBR
Autonomous/Robotics: Robotics and autonomous systems represent AI’s physical edge. Tesla’s full self-driving and humanoid robotics plans, along with Oklo’s AI-powered nuclear infrastructure, show the long-term promise of intelligent automation. Tickers: TSLA, OKLO
Urgency and Opportunity in the AI Boom
The message from the Wedbush team is clear: the time for AI is now. Adoption is moving from experimentation to scale. From financial services to healthcare and logistics, AI is moving into mission-critical workflows. In 2024 alone, AI-related expenditures jumped from virtually nothing to as much as 8–10% of IT budgets — a seismic shift. Wedbush forecasts over $2 trillion in AI spending in the next decade.
Navigating Risks: Hype vs. Reality
Wedbush acknowledges that no revolution is risk-free. Regulatory scrutiny, geopolitical tensions (notably U.S.–China chip dynamics), and macro headwinds (like Fed policy) may introduce volatility. But these are speed bumps, not roadblocks. As Ives notes, we’ve seen this playbook before with the internet 1.0, mobile, and cloud. Early hype is often followed by recalibration. But in each case, the long-term trend won. For investors with vision and discipline, volatility often presents opportunity.
Conclusion: Join the AI Revolution
This is a once-in-a-generation investment cycle. The AI revolution is unfolding, and Dan Ives’ research is the playbook. For investors, professionals, and technologists alike, Wedbush’s AI Revolution report is a roadmap to the companies shaping this transformation.
Disclosures
This content draws from the May 2025 AI Revolution report by Dan Ives and the Wedbush Research team. Excerpts are used under fair use for educational and informational purposes. All rights reserved to Wedbush Securities Inc.curities Inc.
This material is for informational purposes only and does not constitute investment advice or an offer to buy or sell any security. The views expressed are those of the authors and are subject to change. Investing involves risk, including loss of principal. Past performance is not indicative of future results.
References to specific securities are for illustrative purposes and do not constitute a recommendation.
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