While tariffs have caused tech stocks to bend, they won’t break, a longtime bull says. It’s all thanks to artificial intelligence. That could make shares of Palantir, Nvidia, and others a good bet right now.

The technology sector has been one of the harder-hit areas during the 2025 market downturn. Even as stocks have started to rebound amid hopes for tariff negotiations, the Nasdaq Composite is still down more than 8% year to date, nearly double the S&P 500’s loss, and the Roundhill Magnificent Seven exchange-traded fund is off some 13%.

Nonetheless, there are reasons to believe that tech’s underdog status won’t last. Perhaps most obviously, the artificial intelligence genie can’t be put back in the bottle. AI is becoming increasingly mainstream, whether it’s people talking to chatbots, retailers using it to personalize their promotional efforts, or companies hoping to improve efficiency and productivity.

In short, the AI revolution will continue to play out for years to come. That’s the stance of Wedbush analyst Daniel Ives, a longtime tech bull. He calls AI the fourth industrial revolution in a new note Thursday, arguing that “it represents the biggest tech transformation in over 40 years.”

That creates an opportunity for multiple companies—and their investors—to win. He highlights 30 tech companies that he says will be long-term winners across six areas: hyperscalers, software, consumer internet, cybersecurity, autonomous and robotics, and semiconductors and hardware.

Often thought of as the “picks and shovels” of AI, semiconductors and hardware makers are the second largest group in his list. They have also been some of the most well-known AI beneficiaries, including Nvidia—Ives calls co-founder Jensen Huang the “godfather of AI.”

Naturally Ives still likes the stock, along with Advanced Micro Devices and Taiwan Semiconductor Manufacturing. He says AMD will continue to strengthen its position and gain market share, and Taiwan Semi—the world’s leading chip foundry—will make it a beneficiary of the global increase in AI investments. In addition, Micron has “an enviable position within memory,” while Broadcom, the world leader in application-specific integrated circuits (ASICs) for cloud and AI, will benefit from the buildout of these technologies.

More than 15% of cloud services now include some AI component, making hyperscalers another area of huge investments. Major companies in the space “are expected to spend $325 billion+ in 2025 through AI capital expenditures, representing 40% year-over-year growth and over $100 billion year-over-year increase as data center buildouts continue with the AI Arms Race only just beginning,” Ives writes.

“Microsoft is currently in the driver’s seat,” he says, adding that Google parent Alphabet, Amazon.com, and Oracle aren’t far behind.

With both people and businesses ramping up their use of AI, consumer internet companies stand to benefit, too, Ives says. Positives could include AI customer service, to improved search, personalization of ads, and dynamic pricing.

His favorite picks stateside are Apple—he estimates about a quarter of the world’s population will eventually access AI through an Apple device—and Facebook parent Meta Platforms, which is still seeing strong underlying demand. Among Chinese stocks, he highlights Alibaba Group Holding and Baidu. It’s becoming “clearer [Alibaba] could be one of the winners in the China AI Arms Race,” he writes, while Baidu is another major Chinese player poised to do well.

Robotics is another key area, as the “global autonomous vehicle market size is expected to reach $3.22 trillion by 2033 representing a 36% compound annual growth rate,” Ives writes. Tesla’s robo-taxis earn it a spot here, while nuclear energy start-up Oklo will help meet the increasing power demands of automation.

Of course, all of these advancements make cybersecurity more important than ever. Zscaler, Palo Alto Networks, and CyberArk Software are his picks here.

Software is the largest category, as 1 billion apps will be with generative AI by 2028, Ive says, noting “the software era of AI use cases [is] already under way.” Palantir Technologies, Salesforce, IBM, ServiceNow, Snowflake, Adobe, Pegasystems, MongoDB, C3.ai, Elastic, Innodata, and SoundHound are on his list of winners.

Tariffs remain a worry, though Ives predicts they won’t dent the AI revolution in the long run.

He isn’t the only optimist on this front. 22V Research’s Dennis DeBusschere writes Thursday that investors will likely return to megacap tech stocks like the Magnificent Seven because the U.S. economy will likely avoid a recession, though it might slow.

“High-quality, monopolistic companies with strong earnings momentum are favorable in our base case of an economic muddle through, especially after large price drawdowns,” he writes.

Time to ask ChatGPT if tech is cheap enough to buy the dip.