Dan Ives says Mag 7 to outperform in H2 as earnings loom

Dan Ives expects the Magnificent 7 tech stocks to "significantly outperform" in the second half of 2026 as earnings season approaches.

"The upcoming earnings season will be a huge validation moment for big tech," Ives, global head of tech research and senior equity analyst at Wedbush Securities, said. "These stocks were way oversold in June."

In a note Friday, Ives framed the June selloff as an overreaction and positioned the Mag 7 — Apple Inc., Microsoft Corp., Alphabet Inc., Amazon.com Inc., Nvidia Corp., Meta Platforms Inc. and Tesla Inc. — for a rebound as companies report quarterly results. The call extends his long-standing bullish thesis that AI monetization is accelerating, with enterprise spending shifting from infrastructure buildout to revenue-generating deployments.

Ives has argued that every dollar spent on Nvidia chips generates an $8-to-$10 multiplier across other technology companies, benefiting cloud platforms, cybersecurity firms and autonomous driving initiatives. He named Microsoft, Apple, Tesla, Palantir Technologies Inc. and CrowdStrike Holdings Inc. as top picks for 2026 in a December interview, predicting the AI revolution was entering a new phase beyond the initial chip-driven rally.

The analyst's broader framework rests on the view that AI adoption remains in early stages. Gartner forecasts global AI spending to exceed $2 trillion in 2026, with investment broadening beyond top tech giants to a wider base of enterprises. Deloitte's recent report similarly anticipates rising AI spending but emphasizes a shift from experimentation to execution, requiring work on data hygiene, workflow integration and governance.

The Mag 7's collective market capitalization exceeds $15 trillion, meaning a sustained rally would have outsized impact on index-level returns. Investors will watch the upcoming earnings reports for evidence that AI spending is converting into measurable revenue growth — the key test of Ives' bull case.

This article is for informational purposes only and does not constitute investment advice.