Dan Ives says Q2 earnings to drive mega-cap stocks higher

Dan Ives, the Wedbush Securities analyst, said Q2 earnings will be the primary driver for mega-cap stocks in the weeks ahead.

"Q2 earnings will be the driver for mega-cap stocks," Ives, a managing director at Wedbush, said Wednesday on CNBC's "Closing Bell."

Ives, who recently formed Yorkville Ives, a merchant bank in partnership with Yorkville Securities, also discussed SpaceX and how to value the private space company. He did not disclose a specific valuation figure during the interview. The new venture combines Ives' technology research expertise with Yorkville's capital markets capabilities.

The bullish outlook comes as investors prepare for the second-quarter earnings season. Mega-cap technology companies — Apple Inc., Microsoft Corp., Nvidia Corp., Amazon.com Inc. and Alphabet Inc. — represent a significant portion of the S&P 500's market capitalization, making their earnings reports a key factor for broader index performance. Ives has been among the most vocal bulls on the technology sector, particularly on companies with artificial intelligence exposure.

Ives' comments suggest AI-related spending and demand will continue to drive revenue growth for the largest US technology companies. The Q2 earnings season will test whether AI investments are translating into financial results for mega-cap firms. For investors, the upcoming reports will provide the clearest signal yet on whether the AI-driven rally in mega-cap stocks is supported by fundamentals.

This article is for informational purposes only and does not constitute investment advice.