Nvidia, Microsoft, Palantir: Wedbush named its favorites in AI for the rest of the year

Wedbush analysts have named their favorites among tech companies for the second half of 2025. They are betting on companies that benefit from the rapid growth of interest in AI and large-scale investments from business and government agencies. Nvidia, Microsoft, Palantir, Meta and Tesla are in the spotlight. Wedbush estimates that business and government agencies will spend about $2 trillion on AI over the next three years, and the current quarter has already confirmed the acceleration of the transformation, which analysts call the beginning of the fourth industrial revolution.

Wedbush's top 5 top favorites in the tech sector to invest in for the second half of the year include Nvidia, Meta, Microsoft, Palantir and Tesla, writes SeekingAlpha. Wedbush has previously recommended these companies, expecting them to be strong growth stocks in the second half of 2025.  

A team of analysts led by Dan Ives notes that Wall Street continues to underestimate the potential of the so-called Magnificent Seven related to artificial intelligence. In their view, strong reports in the last quarter have only confirmed their optimistic outlook for megacaps.

"We remain bullish as investors have yet to fully realize the massive growth momentum that is about to kick in on the back of $2 trillion of investment in AI by businesses and government agencies over the next three years," Ives and his team said.

A particularly striking example was "the explosive quarterly results and outlook of the symbol company of the AI revolution - Palantir," the analysts add.

They emphasize that "we are only at the very beginning of the fourth industrial revolution," now being led by tech giants such as Nvidia, Microsoft, Palantir, Meta, Alphabet and Amazon.

"In our view, after months of successfully navigating tariff and geopolitical storms, tech stocks are poised for the next big push before the end of the year - and leading the charge will be the winners of the 'golden era' of technology," Wedbush wrote.

Analysts also note that it's time for the broader software sector to join the AI revolution. They estimate that 2025 is a pivotal year for generative AI in the corporate environment: companies are moving from idea to large-scale deployment to reduce costs and increase productivity.

- Shares of Nvidia, the world's most valuable company, have added about 33% since the beginning of the year. 90% of analysts recommend buying its shares, and the most optimistic forecast has the stock up 40%, according to MarketWatch. 

- Meta's capitalization has grown by 30% since the beginning of the year. 86% of analysts recommend buying its securities. The average target price for its shares is 12% above the closing price on August 5.

- Microsoft shares have added 25% since the beginning of the year. Almost 94% of analysts are positive about them and recommend buying the company's securities. The most optimistic forecast predicts a 33% rise in the stock.

- Palantir has added almost 130% since the beginning of the year. However, analysts treat its shares with restraint: more than 60% advise holding the stock (Hold rating). The average target price for its shares implies a 18.5% drop in quotations.

- Tesla shares have lost almost 24% since the beginning of the year. The company's results have been affected by a slump in electric car sales and the political activism of the company's CEO, Ilon Musk. However, earlier this week, the company announced that it approved an interim payment of about $30 billion in Tesla stock to Musk. The decision comes amid an ongoing litigation over his 2018 compensation package. Investors reacted positively to the news on Monday, expecting it to motivate Musk to devote more time to his work at Tesla. 

The company's shares are recommended to buy by 40% of analysts and the same number of analysts recommend to hold them. The highest target price suggests a nearly 62% upside.

This article was AI-translated and verified by a human editor