NVDA, PLTR, MSFT, AAPL, CRWD: Dan Ives’ Top 5 Stock Picks into 2027

Welcome back to watch List. I'm Nicole Petallides.ning and senior managing directorn analyst, Yorkville Ives and company. I'm so glad you're with us. Great to see you.o let's begin as you talk about this age, the golden age with the AI revolution growth. This as you're saying, differentical, time. Why? I meas the amount of money that's spent. us, we're going to have 4 to 5 trillion spent over the next 4 to 5 years. And for every dollar spent on CapEx, t a 5 to $6 multiplier across the rest of tech. And it just speaks to my view. We are now just hitting the second, third, fourth derivatives of AI. A I just believe investors continuee scale and scope of what this is going to look like from an earnings perspective and fundamentally, in terms of a build out over the next 1 18 months, which is why we're so bullish o this next stage of stocks. We think about supply a demand and you're focusing on supply. I mean, I look to see these companies that say they can't even keep with demand. What is really de this AI cycle to you? Yeah. We'll be in Korea next week. Right now demand i supply. It's 13 to 1 for chips. I mean if you Nicole, if you actually right now, if you were a company and you laid out a strategic AI initiative and you said, okay, green light today, not implementing it until probably late nex year, summer in December of next year because of the backlog. Andat t, AMD, Microsoft, you loo at alphabet, Amazon, what we've talked about with names like Palantir and cybersecurity names. I mean this is now it's a golden age in terms of technology, but also first timef China when it comes to tech. So when saw in the middle of the week tha you had the tech plays for 2027, I know you focus on 49 names that yo have coverage of. Some of these may be 50 or less or whatever, but you have the Ives 30 that you have, but then you narrow it down to five tech plays. These are the names that people should write down, I guess. Nvidia, Microsoft, Pal Apple, Crorike, Nvidia. Let's, I mean, let's touch each one for a few seconds here. Nvidia, Microsoft. Well first Nvidia iestors are underestimating earnings. I think up to 20%. I mean there's a stock we have $300 price target. But you know you could argue that could go significantly higher than that because physical AI and the true part of the cycle hasn't even hit yet. And then you go to Microsoft. This is all in their backyard in terms enterprise build out. Azure checks have been so robust. It's a stock that could have a six potentially a in front of it. And it just speaks to chips. Hyperscaler. Palantir continues to be our favorite overall software play. And I think that could be $1 trillion market cap in the next 2 or 3 years. And then you think about surface areas expanding. Agents are expanding. That's bullish for cybersecurity. CrowdStrike of Palo Alto, you know being front and cen terms of the beneficiary. And then itr AIolution, Apple, Cupertino, I mean, they're a toll ector on . And I don't think that that's factor. I think it's worth $75 per share incremental in the So obviously a toll collector you j called Apple. John Ternus now with the helm. I'm curious to hear what you think how you think he is doing. We also heard some reports that the components for the they're cutting back on that because maybe there's a bit of soft deman We have the duo coming out soon that will be available fo pre order, the right, the foldable phone and that we may even have a MacBook with a touch screen. How's John Ternus doing? And what about some of these specific products? Well, first of all, if I, you know, if Id au know, report over the last 4 or 5 years for a quote unquote, you know, iPhone cut to s, you know, in terms of supply that didn't pan out, you know, I'd have a le money today. Right. I mean, the point is like, it just speaks to my vie I believe iPhone 18 is to be significantly higher than expectations. So I disagree with maybe some of the stuff. It goes against what we've seen in the supply chain. And I think when it comes to Ternus, I mean his legacy will be defined his AI chapter about AI enabled devices. I think 20% of the world will ultimately access AI through an Apple device. And I think as it's playing out in the cold, sleeping giant in terms of whata I believe they're about to do when ies to this next phase of the technology cycle. You said AI is going to define him. How so? You said you're waiting for the next phase. What is it? I mean, finally, the action cook, you know, obviously deliver this. Finally, they actually have an AI solution in terms of a strategy. You know, clearly Gemini is one of the key pieces in terms of, you know, as they're building that out. But I just view it, it's the install base. You're going to monet 1.5 billion iPhones, 2.5 billion iOS devices. You think about App Store, you think about the functionality that ultimately will happen on the phone. The consumer AI revolution. Apple. Okay. Did they for a few years they stumble. Yeah. But now you could be late when you have an install base like that. And I just think that is noactored into the stock aturrent levels. The Palantir software play is you favorite. How high e that you picked a long time ago. And where do you think this is headed and why? I think it could be a double over the next 2 or 3 years. I mean, I think this is one where as the free cash flow story ramps and more enterprises move to AI and what they've done, AI in terms of their oncology and, you know, and Karp and the team, how they're able to see around the corner. I just think this is one that it's going to really define the enterprise. And I think they've really changed so much of the way enterprises are sellin today. But Palantir has a technology is unmatchable. And that's why you go back like the fictional narrative of the SaaS apocalypse. Remember anthropic eating Palantir as lunch, the whole thing. Talk to any C They'll tell they'll tell you Palantir has the technology that cannot be matched in terms of what they're doing from an AI use case perspective. And I think as that expands, whetherin government, I think Palantir will be $1 trillion market. I think you have a lot of the names on here. If peopleant to read through, I guess they can go to Yorkville and maybe find your whole list of names. There's a big long list, one that you sort of now have mentioneittle more lately is space had a great conversation with L Swan from like folio. I don't remember him so bullish on a lot of our conversations. He was bringing us data to support his bullishness on this name. We've also had the news that Apollo and other banks are helping space X now to pay for Nvidia chips. Whatyou think about space X? Where is it ed ank about these companies reaching out now out of just the tech companies to get tding to buy chips? Yeah, because it's really a cence that's going on. I mean, if you look what SpaceX is doing, they're essentially buildimselves into the next hyperscaler. So why I love the strategy, what they're doing on the Nvidia chip side inms of really the build out ove coming years. And t much more of a data playhan a quote unquote space play. And me and you have talked about, I believe by the end of next year, there's over 80% chance that SpaceX and Tesla merge because of the data and because of all the AI technology under one hood, space X, just given the tg to have some of these white knuckle periods. You know, 215 a target. But I just continue to think this is one that still isese so early days of where it's going to be over the coming y the price target right now, well, the price right now is 161. What's your real bull case price target o space X. Look, I think over the coming years as they actually start to play this out, I mean, you know this is one that could be multiples from where it is today. Yeah. As it b hyperscale it goes back to the view of Musk is build this into a hyperscalerome the sort of end to end Swissknife for AI. And think that's what board. And I think it speaks tot they're building. But I t like what they've done on the Nvide and in terms of building out capac think it's exactly what you need to do. It is an arms race that's happening a tech. It's buildinghe Vegas Strip 1955. You h there's only minimal on the Vegas strip. If all of a sudden you decide tobuy that point you're in Reno. And I think that's how these tech companies understand what they're doing. Now is the time in this golden age, in the thirding of the AI revolution. I know you have some of the old names that we know in there as well, like IBM and Dell, for example, in addition to some of the newer names that people have been following from SK Hynix to Netflix, maybe names that people don't know as much. I sne a lot of the hyperscal the mag, seven names, Apple, meta, alphabet are all on there. Nvidia just on the final thought here. When there is a dip, how much should people load up? How much should they have in tech in the portfolio? What do you think of someone isa diversifiedortfolio? I mean, I don't mean to be s snide or tongue in cheek, butwh, what do you tell them on a on a pullback kind of day when we're down 5 or 10% because we expect volatility between now and the end of the year, what should they do? I tell them you're in year three of 10 to 12 year build out of a true fourth industrial revolution. There will be white knuckle moments,br financing. Look, even yesterday in terms of, you know, the the open AI report. But theeality is, is that this is a multi year tech bull market ahead of us. And the bears have called ten of the last two downturns. And the bears don't see AI in their spreadsheets when they're in hibernation mode. And it's the time to own the tech winners. And when those opportunities come, you own them. And that that continues to be how we navigate these markets very quickly. The tech boom and which I was here, you were her How was this so different for the folks thatareg is now AI and the AI build out, what do you tell? Why is this different than 1999? Well, back then tech stocks traded what, 30 times revenues today 23 times earnings. Back then itwasd companies, you know, with basically business models and a PowerPoint slide. N it's big tech $1 trillion in the balance sheet, 3 to 400 billion a year that are building out these. You know, what I view as ultimae jobs will be creat by AI than taken away. Andhat's the danger, Nicole, is that it's alwaysy to look back and think, oh, this could be another one of those moments. But manhe bears, they've missed every transformational tech stock the last 25 years because they'reays like, oh, this is the end. And I just part of what makes the market he Why did Elon Musk say, I'm ing to have any apps on my in five years? I have a lot of apps. Well, I mean, Musk is definitely sort a, the Apple ecosystem and sort of like every like every techpeaks company is going at this in a different way. Musk is doing his thing. Nadella is doing it. The Godfather. Jensen another you know I mean yougo down the list right. And it's a . That's why these compani going to spend like they're in a Ferrari left lane going 100 miles an hour, not 45 miles an hour in the lane. Something tellsu drive in the left lane to Dan Ives. Pretty sure of it. Dan Ives, Yorkville,