Wedbush Updates IVES AI 30 List: CrowdStrike Added, Adobe Removed

Wedbush has updated its IVES AI 30 list, adding CrowdStrike, Roblox, GE Vernova, and Nebius, while removing CyberArk, C3.ai, Adobe, and Elastic. The list is a ranking of the top 30 stocks in the market based on Wedbush's proprietary AI model.

Wedbush Securities has recently updated its IVES AI 30 list, adding four new companies while removing four others. The list, curated by Daniel Ives, is a ranking of the top 30 stocks in the market based on Wedbush's proprietary AI model, reflecting the analyst's view on the future of artificial intelligence (AI) development.

New Additions

1. CrowdStrike (CRWD)
- CrowdStrike, a cybersecurity vendor, has been added to the list. Daniel Ives believes the company is well-positioned to capitalize on the AI Revolution with more module add-ons within its core verticals. The analyst also sees continued adoption of data protection and Charlotte AI, which continues to see strong deal flow [1].

2. Roblox (RBLX)
- Roblox, an online gaming platform, has also been included. Ives notes that the company's AI-driven discovery initiatives are driving increased platform adoption and stronger monetization over the coming quarters [1].

3. GE Vernova (GEV)
- GE Vernova, an ancillary beneficiary of the AI boom, has been added to the list. The company continues to see robust demand for its AI infrastructure business while looking to increase its data center capacity over the coming years [1].

4. Nebius Group (NBIS)
- Nebius, a data center operator, has been included. Ives believes the company will continue to see robust demand for its AI infrastructure business as it scales its data center capacity [1].

Removals

1. CyberArk (CYBR)
- CyberArk was removed from the list following Palo Alto Networks' planned $25B acquisition of CyberArk. Palo Alto Networks is already included in the AI 30 list [2].

2. C3.ai (AI)
- C3.ai was removed due to news around the recent sales organization restructuring and the stepping down of CEO Thomas Siebel, which had a significant impact on the company's financials [2].

3. Adobe (ADBE)
- Adobe was removed due to concerns about its product portfolio being disrupted by AI, which may impact the company’s growth and free cash flow (FCF) generation. Ives noted that Adobe is off to a slower AI start than anticipated [2].

4. Elastic (ESTC)
- Elastic was removed as the company is seeing a slowdown in the public sector despite seeing incremental funding for software and AI improvements across the federal government [2].

Market Sentiment

The retail sentiment toward the newly added stocks remains mixed, with CrowdStrike and Roblox showing bearish sentiment, while Nebius has garnered bullish sentiment. The message volume on Stocktwits for these stocks varies, with some showing low or normal volumes [1].

Conclusion

The IVES AI 30 list is a dynamic reflection of Daniel Ives' bullish AI thesis, which is based on the belief that investors are still not fully appreciating the growth potential from enterprise and government spending on AI technology and use cases. The updated list highlights the companies that Ives believes will define the future of AI development over the coming years.

References

[1] https://stocktwits.com/news-articles/markets/equity/dan-ives-updates-ai-picks-crowdstrike-roblox-ge-vernova-nebius-make-cut/chsOch0RdQk
[2] https://seekingalpha.com/news/4486371-crowdstrike-added-adobe-removed-from-ives-ai-30-list-wedbush