AI Trading Trends and Top Stocks

One of the leading proponents of AI trading on Wall Street is Dan Ives, who serves as the global head of technology research at Wedbush. He’s known for colorful comparisons—likening the current AI boom to being in the early innings of a baseball game or a party that stretches from 10 p.m. to 4 a.m. Yet, Ives’ serious recommendations deserve attention, having proven accurate over time. In light of a recent dip in tech stocks, analysts are focusing on three AI-driven stocks that might be worth investing in.

Ives’ top recommendation is Nvidia (NVDA), a semiconductor giant and the most valuable company in the world. Founded in 1993, with CEO Jensen Huang (whom Ives calls the “Godfather of AI”) among its co-founders, Nvidia has transformed graphics technology and introduced the graphics processing unit (GPU). This innovation has laid the groundwork for high-performance gaming and essential AI functions, and the company now offers a range of AI-related hardware and software solutions.

NVDA boasts a staggering market cap of $4.4 trillion and has seen its stock price rise an astonishing 1,211% over the past five years, with a year-to-date increase of 35%.

Despite leading in the GPU space, Nvidia’s financial metrics are equally impressive, showcasing a compound annual growth rate (CAGR) in sales and revenue of 44.06% and 66.66%, respectively. The company has consistently outperformed in quarterly profits over recent years.

This trend continued in the latest quarter. Nvidia reported revenues of $57 billion for the third quarter of fiscal 2026, which marked a 62% year-over-year increase. Core data center revenue rose by 66% to $51.2 billion, while earnings climbed 67% annually to $1.30—exceeding the expected $1.26.

Operating activities contributed $23.8 billion in net cash for the quarter, up from $17.6 billion the year before. At the end of this period, Nvidia had a cash balance of $60.6 billion, substantially above its short-term debt, which stands at $999 million.

Based on these figures, analysts categorize NVDA stock as a consensus Strong Buy, with an average price target of $252.33, indicating a potential upside of about 42%. Out of 48 analysts, 44 recommend a “strong buy,” two suggest a “fair buy,” one indicates a “hold,” and one rates it as a “strong sell.”

Next up is Advanced Micro Devices (AMD), which ranks second in the market behind Nvidia. Founded in 1969, AMD is a versatile semiconductor firm providing hardware and related software across various sectors, including GPUs, CPUs, and specialized technology.

Currently, AMD’s market cap sits at $350.1 billion, with its stock experiencing a remarkable 76% rise this year and a dramatic 119% increase over the last five years.

While AMD may not have quite the same history of consistently beating revenue expectations as its larger competitors, its financials remain strong. Over the past five years, revenue and profits have grown by 29.94% and 28.93% annually, respectively. The most recent quarter continued this trend, with AMD surpassing analyst predictions across significant metrics.

In the third quarter of 2025, overall revenue reached $9.25 billion, showing a robust 36% increase compared to the previous year. The data center segment contributed $4.3 billion of that total, growing by 22%, while the client and gaming divisions soared by 73% to reach $4.0 billion.

Earnings per share rose 30% to $1.20, beating the consensus estimate of $1.17. This performance extends AMD’s streak of consecutive profitable quarters to four.

Liquidity looks positive as well, with operating cash flow surging nearly threefold to $1.8 billion from $628 million the prior year. As of the end of the period, AMD had $4.81 billion in cash comfortably exceeding its short-term debt of $873 million and long-term debt standing at $2.35 billion.

In summary, Ives rates AMD as a ‘Moderate Buy.’ The average price target here is $291.29, suggesting an upside of around 41%. Among the 43 analysts monitoring AMD, 28 hold “strong buy” ratings, three suggest “fair buy,” and 12 have a “hold” stance.

Lastly, we have Palantir (PLTR), a company for which Ives has coined the nickname “Messi of AI.” The organization, led by the outspoken Alex Karp and supported by Peter Thiel, specializes in software focused on big data analytics. Their products cater to both government sectors and a variety of commercial industries.

Palantir has a market capitalization of $386.7 billion and has surged 120% this year, representing a striking 586% increase over the last five years.

This stock’s impressive growth can largely be attributed to the company’s solid financial results, as it has consistently exceeded profit expectations for the past two years.

In Q3 2025, revenue reached $1.2 billion, reflecting a year-over-year growth of 62.8%. Earnings for that quarter shot up by 110% to $0.21 per share, outperforming the expected $0.17.

Cash from operating activities also saw significant growth, increasing to $1.36 billion from $693.54 million a year earlier, resulting in a cash balance of $1.62 billion, significantly above its short-term debt of $46.3 million.

Given these circumstances, analysts have assigned a Hold rating to PLTR primarily due to its steep valuation after a dramatic rise. The average price target sits at $192.67, indicating roughly an 18% upside from current levels. Among the 21 analysts covering this stock, four have a “strong buy” rating, fourteen maintain “holds,” while one has a “moderate sell” and two hold “strong sell” ratings.