Analysts led by Daniel Ives said that these technology stocks are closely related to the current wave of the AI revolution, with their businesses covering areas such as super-scale computing, network security, software, semiconductors, the Internet, and automated robots. The analysts consider this AI revolution to be the most disruptive technological change in the past 40 years.
Ives and his team said, "This $2 trillion wave of AI investment began with the emergence of ChatGPT at the end of 2022, and AI godfather Hwang In-hoon and his company NVIDIA have been driving this process. Currently, NVIDIA is the only dominant force in the field of AI chips, and its chips are as valuable as the new gold or oil."
The report specifically points out that NVIDIA is the foundational company supporting the AI revolution. Hwang In-hoon, an authoritative spokesman in the AI field, provides a very useful analysis of the overall AI needs of enterprises and the market outlook for NVIDIA's AI chips.
The analysts added that while the first steps in AI adoption revolve around chip and cloud services giant Nvidia, the key is that they estimate that every dollar spent on Nvidia has a multiplier effect of $8 to $10 across the rest of the technology ecosystem.
Moreover, Ives and his team noted that while the early stage of AI was dominated by Hwang In-hoon and Nvidia from an AI chip perspective (AMD (AMD.US) is also trying to join the race), major players in cloud services and hyperscale computing are another key element of the first important stage of the AI revolution. Among them, Microsoft (MSFT.US) holds the top spot, while Google (GOOGL.US)'s Google Cloud Platform (GCP) and Amazon (AMZN.US)'s AWS also show strong development momentum in the areas of cloud services and AI.
"The impact of the AI cycle on the consumer Internet will be huge, and it will start in the cloud services area with Amazon's AWS and Google's GCP," the analysts said, adding that AWS and GCP will buy AI-enabled chips, build AI-enabled services, and sell these services to their respective customer bases.
On the consumer technology theme, the analysts remain bullish, believing that Amazon, Google, and Meta (META.US) are technology stocks worth watching. The bank noted that many information technology sectors are focused on building hyperscale deployments of AI, led by Microsoft, Amazon and Google. Software-driven use cases are now recognized as high-priority use cases for AI, and are being driven and accelerated across multiple verticals.
Ives' team calls the list a "guide to participating in the Fourth Industrial Revolution" and is divided into six categories:
Hyperscale computing companies: Microsoft, Google, Amazon, Oracle (ORCL.US).
Software companies: Palantir (PLTR.US), Salesforce (CRM.US), IBM (IBM.US), ServiceNow (NOW.US), Snowflake (SNOW.US), Adobe (ADBE.US), Pegasystems (PEGA.US), MongoDB (MDB.US), C3.ai (AI.US), Elastic (ESTC.US), Innodata (INOD.US), SoundHound AI (SOUN.US).
Consumer Internet companies: Apple, Meta, Alibaba, Baidu.
Cybersecurity companies: Palo Alto Networks (PANW.US), Zscaler (ZS.US), CyberArk (CYBR.US).
Autonomous driving and robotics companies: Tesla (TSLA.US) and Oklo (OKLO.US).
Semiconductor and hardware companies: Nvidia, AMD, TSMC (TSM.US), Broadcom (AVGO.US), Micron Technology (MU.US).
Ives and his team say it's time for the broader software sector to join the AI revolution. They believe that AI use cases are growing rapidly and that the remainder of 2025 will see us enter the enterprise consumption phase of AI, when large language models (LLMs) will be fully available. The application of true generative AI will be a major catalyst for the software industry, and these 30 core companies will benefit from this generation-exclusive Fourth Industrial Revolution.
The analysts also added that 2025 will be a turning point for generative AI in the enterprise, as real applications evolve from the concept stage to large-scale applications. Despite the uncertainty of tariffs, more and more companies are considering investing in AI to reduce costs and improve productivity.
The bank said, "The key is the explosion of AI use cases, which will drive a technology revolution centered on software and chips and continue to influence technology development beyond 2025. This also supports our judgment on the technology bull market and AI revolution, and the 30 core companies we are announcing today are emblematic of this trend."