Dan Ives - The Market Is PANICKING - But These Stocks Are Just Getting Started! - I'm Going All-In

It's about cloud growth that's just been massive from [music] Alphabet to Microsoft to what we saw, you know, especially with all the hyperscalers. [music] And I think that just shows that the enterprise use cases are accelerating. The reason I say it's third inning, you only have less than 5% of companies that have gone down the AI path. And that just shows this is still early days in the AI revolution. I think earning season is proven [music] that. >> While broader markets panic over massive big tech capital expenditures, Wall Street is fundamentally misjudging the cycle. The doom and gloom narrative screams that we are staring at a 1999.com bubble top. Yet Dan Ies argues we are merely in a 1996 inflection point, roughly the third inning of a decade long structural transformation. While skeptics call for a severe tech hangover, Hyperscaler earnings are proving that the bears have many more years of hibernation ahead. The numbers completely dismantle the bubble thesis. Hypers scale capex is set to hit an unprecedented $650 billion driven by an underlying chip supply to demand deficit running at a staggering 12:1 ratio. We are rapidly transitioning from the initial hardware layer into derivative monetization where every $1 spent on raw AI hardware unlocks an $8 to$10 multiplier effect across cloud infrastructure, [music] enterprise software, cyber security, and physical AI. With fewer than 5% of global enterprises having fully deployed AI workflows into production, the monetization runway isn't shrinking. It is exponentially expanding. To capitalize on this structural wave, we are breaking down three perfect stocks that anchor Iive's bullish outlook. First, a $3.4 plus trillion dollar enterprise titan converting massive cloud backlogs directly into recurring software seats. Second, a cloudnative security leader poised to capture a multi-billion dollar wave as expanded AI surface areas ignite a golden age for cyber security. And third, a disruptive meggaap pioneer bridging digital intelligence into physical AI, a company Ives predicts holds a potential $2 trillion to $3 trillion valuation path as autonomous tech unlocks its true golden goose. Here is why Wall Street has it dead wrong and how these three powerhouses are positioning investors for the next wave of the AI boom. First on the list is the ultimate enterprise titan, Microsoft Corporation, ticker MSFT. Sitting at a massive $3.4 trillion market cap, this company just delivered a masterclass quarterly performance that completely silenced the software skeptics and proved that the AI monetization wave is officially here. Microsoft blew past Wall Street estimates, delivering $90 billion in quarterly revenue, up 18% year-over-year, along with an operating income surge of 21% to over $ 38.3 billion. The true centerpiece of this blowout performance was Azure. Cloud revenues didn't just meet expectations, they exploded with Azure growth accelerating to an astounding 43% and breaching the 100 billion annual revenue milestone for the first time in history. Even more impressive, over 90% of Microsoft cloud revenue is coming from non-frontier AI companies, proving that enterprise adoption across diverse industries is exploding rather than relying solely on a few AI labs. What makes the thesis so compelling right now is their staggering commercial remaining performance obligation which surged to $678 billion. This provides unprecedented topline visibility as clients rapidly transition from testing AI to deploying it at scale. While critics point to aggressive capital expenditures, including $41 billion in quarterly capex and over $130 billion in data center commitments, Microsoft is already seeing a massive return on investment. Adoption of Microsoft 365 co-pilot expanded to 30 million paid seats, representing just a fraction of its 400 million seat addressable market, leaving immense runway ahead. Furthermore, Microsoft maintains a critical underappreciated advantage with its foundational cyber security ecosystem, seamlessly integrating security with cloud and AI agents. Unlike competitors whose cash flows are feeling the pinch, Microsoft's rocksolid margins keep its free cash flow firmly positive, giving management unmatched flexibility to fund next generation compute capacity. With the stock currently trading at roughly 24 times forward earnings, well below its 5-year historical average, the market has severely mispriced this software giant. As Azure and Copilot continue to compound revenues, Microsoft stands perfectly positioned to drive the next massive leg of the enterprise AI revolution. Shifting from enterprise cloud software to the protective shield of the AI super cycle, our second stock is Crowdstrike Holdings Inc., ticker CRWD. While short-term valuation skeptics bulk at current multiples, they are fundamentally underestimating a massive structural shift in cyber security. As enterprises deploy millions of autonomous AI agents and expand their cloud footprints, attack surfaces are multiplying exponentially. Crowdstrike isn't just defending endpoints anymore. It has become the indispensable control plane enabling safe enterprise AI adoption. The company's recent performance numbers demonstrate a business firing on all cylinders. Crowdstrike delivered a blockbuster quarter with net new annual recurring revenue jumping 32% year-over-year to $256 million, driving total ARR past $5.51 billion. Fullyear revenue is accelerating toward the $5.96 billion mark as platform consolidation works overwhelmingly in Crowdstrike's favor. Their consumption style Falcon Flex model is proving to be a massive commercial flywheel with accounts expanding 99% year-over-year and returning customers consistently reflexing with substantial contract uplifts. The biggest gamecher driving long-term hyperrowth is the emergence of AI detection and response or aid. Following major strategic partnerships with top frontier AI labs and hyperscalers like AWS, Crowdstrike's aid business surged over 250% sequentially in a single quarter. Management views aid as a total addressable market opportunity, even larger than traditional endpoint detection and response. This explosive demand is expanding CrowdStrike's projected market opportunity from $149 billion today toward an astounding $325 billion by 2030. Financially, Crowdstrike remains in a league of its own, generating a record $468 million in quarterly free cash flow at an elite 34% margin and maintaining a cash stockpile of over $4.55 billion. Operating margins expanded over 500 basis points while non-GAAP operating income surged 62%. With a rule of 40 score running at an extraordinary 59%, Crowdstrike combines hyperrowth with worldclass cash generation. As AI workloads transform enterprise IT, CrowdStrike is positioned directly at the epicenter of a golden age for cyber security software, bridging the gap from digital AI platforms into real world automation. Our third and final stock is Tesla Inc., ticker TSLA. While short-term Wall Street observers fixate on transient margin compression and heavy capital expenditures, Dan Ies and forward-looking analysts see a company laying the groundwork for the single largest physical AI transformation in history. Wall Street's knee-jerk panic over short-term cash burn completely misses the point. Tesla is aggressively funding a structural moat that [music] extends far beyond traditional electric vehicles. The Core automotive engine remains remarkably resilient, delivering 480,000 vehicles last quarter, a 25% year-over-year surge that smashed consensus estimates. But the true gamecher lies in high margin services and software monetization. Full self-driving subscriptions experienced a record-breaking surge, expanding by 200,000 net new subscribers in a single quarter to reach nearly 1.48 48 million active users. With a 55% attach rate on new deliveries, FSD is evolving into a pure high margin software stream that steadily expands recurring cash flows. Beyond software lies the holy grail of physical AI, autonomous robo taxi networks, and the Optimus humanoid robot. Tesla is already decommissioning legacy vehicle assembly lines at its Fremont facility to install dedicated first generation Optimus production lines. Backed by a staggering 43.5 billion in liquidity, Tesla is converting raw compute into realworld utility by deploying its proprietary inference chips and supercomputing clusters. Tesla is creating an unassalable data flywheel as fleets of humanoid bots begin internal factory training before eventual mass market deployment. While near-term capital intensity creates temporary noise, Tesla's balance sheet provides an unmatched buffer to build scale and lock down proprietary robotics capabilities. As unsupervised robo taxi routes expand across major metropolitan hubs and Optimus transitions toward commercial production, Tesla is pivoting from an automaker into an irreplaceable physical AI platform, setting the stage for a massive long-term valuation rerating. The AI revolution isn't slowing down, it's shifting gears. While short-sighted investors flee on capex noise, the data proves we are only in the third inning of a structural super cycle. Microsoft, Crowdstrike, and Tesla represent the ultimate triangle of enterprise cloud, cyber security, and physical AI. Position yourself before Wall Street catches on. Subscribe, like, and drop your top stock pick in the comments below.