Tesla is positioned as the leading company in 'physical AI', particularly in autonomous robotics and future advancements.
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9 All-Star AI Stocks
Ticker Take with Jon ErlichmanMay 21, 2026
Dan Ives of Wedbush believes the AI investment cycle is still in its early stages (third inning). He highlights the massive demand for Nvidia chips and the limited adoption of AI by US companies. Ives identifies key sub-sectors like chips and software, and names nine AI stocks he believes will be stars, including Microsoft, Alphabet, Palantir, Nvidia, and Taiwan Semi.
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AMD is expected to be a significant winner in the chip market beyond Nvidia, benefiting greatly from the ongoing demand for chips.
Palo Alto Networks is undervalued by investors who are not factoring in the significant demand expected for its services, especially following the CyberArk deal.
CrowdStrike is expected to be a major beneficiary of the AI buildout due to its expanding surface area and strong platform.
Taiwan Semi is mentioned as a key player in chip manufacturing, essential regardless of which chip companies ultimately win in the market.
Palantir is highlighted as having the best software story in AI right now, with a strong monetization case that is just beginning its next phase.
Alphabet, the parent company of Google, is seen as a strong second pick after Microsoft due to its momentum in cloud, Gemini, and search.
Microsoft is the starting point for most companies adopting AI in the enterprise, playing a foundational role, especially after its OpenAI deal.
Nvidia is considered the epicenter and foundation of AI, with demand for its chips far exceeding supply, and is projected to reach a $6 trillion market cap by 2027.