Dan Ives of Wedbush Securities said the artificial-intelligence revolution is currently in its "third inning" and has most of its potential yet to be realized.
This assessment suggests that the current market surge is not a peak but a foundation. If the technology continues to scale as predicted, it could trigger a massive wave of corporate spending and a significant shift in global equity markets.
During a CNBC interview on May 5, 2026, Ives, who serves as the Global Head of Technology Research at Wedbush Securities, said the current state of the industry is in its early stages. He said the market is only beginning to see the practical applications of the technology across various sectors.
According to Ives, only 10% to 15% [1] of the total potential of AI has been realized so far. This gap between current utility and future capacity suggests a long runway for growth for both hardware providers, and software developers.
Financial projections for the sector remain aggressive. Ives said that there is approximately $4 trillion [1] of AI-related spending ahead. This capital influx is expected to drive further market growth as enterprises integrate these tools into their core operations.
Beyond the immediate spending, Ives pointed to the potential for an AI-driven IPO boom and sustained demand for chips. He said these factors could lift the Nasdaq to 30,000 points [2] within six to nine months.
While some critics suggest the AI market is overextended, Ives maintains that the structural shift in how businesses operate is just beginning. He said the transition to an AI-centric economy will require a level of investment not seen in previous technological cycles.
“We are in the third inning of the AI revolution.”
The projection of $4 trillion in spending indicates that the AI transition is being viewed as a fundamental infrastructure overhaul rather than a temporary software trend. By framing the current era as the 'third inning,' Ives is signaling to investors that the volatility of early adoption is passing, and the industry is entering a phase of sustained, large-scale deployment that could fundamentally revalue the tech sector.
