Tech stocks were the talk of Wall Street in 2023 centering around Magnificent Seven and AI drivers, and it looks like that will continue in 2024. With companies placing major investments in AI across their respective business models, it may signal a paradigm shift.

Wedbush Securities Managing Director and Senior Equity Analyst Dan Ives joins Yahoo Finance to give insight into what he refers to as "the start of the fourth industrial revolution" and which companies stand to best capitalize on this shift.

Ives points out how dominant tech will be this year, affirming: "What this is going to do to the chip sector in terms of this cycle, I think a lot of these chip names, you'll see M&A, what's been Salesforce (CRM), Adobe (ADBE), Oracle (ORCL), it's one where we believe it's a 1995 moment. The biggest tech transformation in the last 30 years."

"We believe, the new tech market has begun despite the bears winning a few battles the first few days of the year," Ives continues to say.

Related Videos

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino.

Video Transcript

JULIE HYMAN: Let's broaden it out a little bit because one of the questions we've been talking about a lot in the first days of the year, kind of holding over from last year, is, where else are we going to see the opportunity in AI, right? Who else is going to be making money from this besides just NVIDIA?

And I know that you've had some calls on some companies before. Palantir is one of the ones you're very excited about. What's going to be the name that's going to benefit the most this year in that area?

DAN IVES: Yeah, because I think to your point, I mean, it was just the godfather of AI, Jensen, NVIDIA, as well as what Nadella has done in Redmond with the trophy case. This year, it's going to be about the rest of the tech.

I mean, when you look at software and chips, I think they lead tech higher. And you look at some of these names like MongoDB, the Messi of AI, Palantir, I look at names like Snowflake. That's another one you're seeing sentiment get much more negative.

What this is going to do to the chip sector in terms of this cycle, that could ultimately-- I think a lot of these chip names-- you're also going to see M&A significantly. And then you look at the install base plays. What's Benioff doing at Salesforce? Look at Adobe. Look at Oracle.

It's one where we believe it's a 1995 moment. It's the biggest tech transformation in the last 30 years. This is not hype. And I think this is really the start of a fourth industrial revolution. We believe the new tech bull market has begun, despite the bears winning a few battles the first few days of the year.