At the World Economic Forum in Davos, Wedbush Securities analyst Dan Ives delivered a stark proclamation: For the first time in three decades, the U.S. has surged ahead of China in technology, propelled by the artificial intelligence surge. Speaking live from the Swiss Alps, Ives highlighted NVIDIA’s dominance as the singular chip powering global AI ambitions, with Microsoft and Palantir exemplifying American leadership. This shift, he argued, is drawing international tech executives to invest heavily in U.S. innovation hubs.

Ives’s comments came amid bustling discussions on AI’s transformative potential, where conversations centered on strategic capital deployment. ‘How do they invest in AI? And the biggest beneficiary of that is U.S. tech stocks,’ Ives told CNBC, underscoring a reversal in the long-standing Sino-U.S. tech rivalry. His optimism stems from direct engagements with global leaders, painting a picture of accelerating AI adoption that favors American firms.

Davos Insights Fuel Bullish Outlook

In a recent note from Davos, Ives predicted chips and software would seize leadership in 2026, countering widespread skepticism about the latter sector. Software stocks have faced headwinds, with critics like investor Ben Thompson arguing AI reduces enterprise seat counts, squeezing revenues. Yet Ives sees a turnaround, pointing to Palantir’s trajectory as evidence of software’s pivotal role in AI use cases.

‘Look what Palantir has done. Front and center. The use cases are being led by software,’ Ives remarked, citing MongoDB and Snowflake as additional proofs. He dismissed bearish sentiment—even from New York and Davos cab drivers—as a contrarian signal for a bullish trade ahead. This view challenges the pressure on names like ServiceNow and Salesforce, positioning 2026 as a surprise rebound year for the sector.

China’s Chip Ambitions Amid U.S. Lead

Breaking news from Davos amplified Ives’s narrative: Alibaba plans an IPO for its AI chip unit, a move timed amid U.S.-centric forums. Ives interprets this as validation of China tech’s resilience, naming Alibaba a favorite in his ‘Ives AI 30’ basket alongside Baidu. ‘You have to own some of the China plays,’ he advised, framing the AI race as a nine-inning game in its early third inning.

This development underscores global chip fervor, yet Ives maintains U.S. superiority via NVIDIA’s ‘Godfather of AI’ Jensen Huang and unmatched ecosystem. Reports from TipRanks echo his Davos takeaways, where Ives hailed NVIDIA and Palantir as AI powerhouses after executive meetings. The analyst sees no bubble, only acceleration into 2026.

Software Rebound Takes Center Stage

Software’s potential revival forms a core thesis, with Ives forecasting leadership alongside chips. Palantir’s success in AI-driven applications exemplifies this, while hyperscalers like Microsoft prepare for blockbuster earnings. Investors, he warns, underestimate derivatives across the tech stack, from second- to fourth-order effects.

Cybersecurity emerges as a standout, with CrowdStrike poised to shine in upcoming reports. Ives flagged it alongside Microsoft as earnings highlights, dismissing profit-taking urges amid volatility. Recent web insights from Business Insider align, listing Microsoft as Wedbush’s top large-cap AI pick for 2026, with Palantir and CrowdStrike close behind.

AI Revolution’s Early Innings

Ives’s ‘third inning, one out’ metaphor permeates his analysis, rejecting bubble fears seen at past peaks. Davos reinforced this, with improved geopolitics enhancing the backdrop. He urges owning winners like NVIDIA, AMD, and select China names, predicting a ‘monstrously bullish’ earnings season.

Posts on X from tech observers amplify this sentiment, with users echoing Ives’s U.S. lead and software pivot. TheStreet reports his refreshed 2026 AI buy list, featuring Microsoft, Palantir, Apple, Tesla, and CrowdStrike beyond NVIDIA. This reset reflects evolving cycles, prioritizing AI enablers.

U.S. Investments Draw Global Capital

The forum buzzed with international firms eyeing U.S. AI infrastructure, from data centers to talent pools. Ives noted Microsoft’s trading discount as a mispricing, with hyperscalers set to surprise. Alibaba’s chip IPO, per reports, signals China’s counterplay but lags U.S. momentum.

TipRanks coverage of Ives’s top picks highlights Palantir and CrowdStrike for 2026, post-ChatGPT hype. Seeking Alpha details Microsoft and Palantir headlining, affirming cybersecurity’s rise amid AI expansion.

Earnings Season as Inflection Point

With Mag-7 reports looming, Ives anticipates outperformance not yet priced in. CrowdStrike’s cybersecurity prowess and Microsoft’s Azure growth stand out. He advises against panic selling, viewing dips as opportunities in NVIDIA and peers.

Business Insider’s 2026 predictions from Ives include Tesla, Apple-Google alliances, and cybersecurity bulls. Stocktwits notes Tesla, Apple, MSFT watches, while Heygotrade covers five key calls.

Geopolitical Tailwinds Bolster Tech

Davos’s better geopolitical tone, relative to recent weeks, supports Ives’s stance. U.S. policy on investments, as discussed by leaders, funnels capital stateside. China’s efforts, like Alibaba’s, add diversification but trail in AI chip efficacy.

This positions U.S. tech for sustained outperformance, with software’s rebound surprising skeptics. Ives’s track record and Davos pulse make his call a must-watch for insiders navigating 2026’s AI surge.