In a recent interview on CNBC, Dan Ives, Managing Director at Web Bush, shared his bullish outlook on the tech sector’s earnings. He cited robust digital advertising trends and the accelerating AI revolution as primary drivers.

Ives expressed optimism, describing the current tech earnings season as “one for the ages,” particularly highlighting the strength of digital advertising, which he believes has exceeded expectations. He emphasized the transition of the AI revolution from hardware to software, predicting a significant increase in tech stock values by as much as 15% for the remainder of the year.

When asked about specific companies, Ives pointed to Microsoft as a standout performer, especially in the cloud computing sector. Despite NVIDIA’s prominence in the AI space, Ives argued that Microsoft’s cloud story takes precedence. Additionally, he identified Google, particularly its parent company Alphabet, as a key player poised to benefit from the surge in digital advertising, potentially seeing a $30 to $40 upshot.

However, Ives cautioned that Google might introduce charges for AI usage, marking a significant shift in its business model. Nonetheless, he remained bullish on Alphabet and Microsoft, suggesting their strong performance could signal positive prospects for other tech giants.

Regarding other tech firms, Ives singled out Palantir as a top performer in the AI field, praising its capabilities over other contenders like Snowflake. He also expressed concern about legacy players like Cisco and HP, noting their loss of market share in contrast to the gains made by companies like Microsoft and Oracle.

Speaking of Oracle, Ives commended the company for its successful pivot from a “boring database company” to a formidable player in the tech industry. He highlighted Oracle’s remarkable resurgence as evidence of the transformative power of strategic adaptation in the tech sector.

However, Ives expressed skepticism about Apple’s rumored foray into robotics. Ives’ comments regarding Apple’s rumored venture into robotics were characterized by skepticism and caution. Drawing on the failed Titan project as a cautionary tale, Ives expressed concerns about the potential pitfalls of Apple investing in robotics, describing it as a possible “horror show.” His apprehension likely stems from the challenges and uncertainties of such a significant departure from Apple’s core business areas. While Apple has a history of innovation and success, particularly in consumer electronics, Ives’ remarks underscore the complexity and risks inherent in expanding into unfamiliar territories like robotics.

Ives’ optimistic outlook on tech earnings reflects a broader confidence in the sector’s growth potential. As digital advertising thrives and the AI revolution accelerates, investors eagerly anticipate strong performances from tech giants like Microsoft, Alphabet, and Oracle while remaining cautious about potential missteps, such as Apple’s rumored robotics ambitions.