The AI Revolution's Triple Crown: Why MSFT, PLTR, and NVDA Are the Stocks to Own Now

In the race to dominate the artificial intelligence revolution, three companies stand out as the engines of innovation: Microsoft (MSFT), NVIDIA (NVDA), and Palantir (PLTR). According to Wedbush analyst Daniel Ives, these stocks are not just beneficiaries of the AI boom—they are its architects. With enterprise spending on AI expected to hit $2 trillion over the next three years, Ives’ bullish thesis is clear: these three stocks are the keys to unlocking the future of tech.

Microsoft (MSFT): The AI Stack That’s Rewriting the Rules

Microsoft’s $3.22 trillion market cap isn’t accidental. The company has positioned itself at the heart of the AI transformation by integrating its Azure cloud platform, Office 365, and Windows with advanced AI tools like Copilot. In its most recent quarter, Microsoft reported revenue of $70.06 billion, up 13% year-over-year, with its Intelligent Cloud segment—driven by Azure—surging 21% to $26.8 billion.

The crown jewel is its partnership with OpenAI, where Microsoft has invested nearly $14 billion since 2019. This relationship fuels Azure’s leadership in AI infrastructure, from large language models to enterprise AI workloads. Ives sees Microsoft as the “driver’s seat” in the AI race, projecting its market cap could hit $7 trillion by 2025 as it monetizes AI across software, cloud, and enterprise services.

The numbers back the thesis:
- Analysts expect $43 billion in NVIDIA’s next quarterly revenue, driven by AI chip demand.
- Microsoft’s Azure now powers 300+ global data centers, with AI tools embedded in 240,000+ enterprise accounts.

NVIDIA (NVDA): The GPU King Fueling the AI Infrastructure Boom

NVIDIA’s dominance in AI hardware is unmatched. Its Blackwell GPU architecture is the backbone of data centers, supercomputers, and even quantum computing initiatives. In its fiscal fourth quarter, NVIDIA’s data center revenue soared 93% YoY to $35.6 billion, accounting for 90% of its total revenue.

Ives calls NVIDIA the “gold and oil of AI infrastructure”, citing its role in a $2 trillion global capex wave. Partnerships like its collaboration with Oracle to integrate Blackwell chips into generative AI tools, and its work with Cadence on quantum computing, highlight its expanding ecosystem.

Despite near-term dips due to tariff concerns and competition, Ives maintains an “Outperform” rating with a $175 price target (49% upside). TheStreet’s consensus is even more bullish: 34 “Buy” ratings out of 40 reviews, with an average target of $164.35.

Palantir (PLTR): The AI Software Disruptor in a New Era

While Microsoft and NVIDIA lead in infrastructure, Palantir is the “software phase” disruptor of 2025. Its Artificial Intelligence Platform (AIP)—which uses natural language processing to analyze vast datasets—is revolutionizing industries from defense to healthcare.

In its first quarter, Palantir reported revenue of $883 million, a 39% YoY jump, fueled by partnerships like integrating Anthropic’s Claude AI into its FedStart SaaS platform. Ives dubs Palantir the “Messi of AI”, envisioning its market cap hitting $1 trillion over three years.

Yet, skepticism lingers. TheStreet’s consensus is a “Hold” due to valuation concerns, but Ives sees dips as buying opportunities. His $140 price target (17.5% upside) reflects faith in AIP’s scalability, especially as federal AI spending surges.

Risks and the Road Ahead

The AI revolution isn’t without hurdles. Geopolitical tensions, regulatory scrutiny, and overvaluation fears could pressure stocks. Microsoft’s dependency on Azure adoption, NVIDIA’s exposure to GPU competition, and Palantir’s valuation skepticism are valid concerns.

However, Ives argues these risks are “noise in a signal”. The $1.8 trillion AI market by 2030 (36% CAGR) and enterprise adoption rates—70% of companies increased AI budgets in 2025—make these stocks too critical to ignore.

Conclusion: The Triple Crown of AI

Microsoft, NVIDIA, and Palantir form the “AI Holy Trinity” for 2025. Microsoft’s cloud and enterprise AI stack, NVIDIA’s GPU hegemony, and Palantir’s software-driven analytics create a virtuous cycle of innovation and profitability.

• Microsoft ($438.17) has a $515 price target (17.5% upside), backed by its $2 trillion AI capex pipeline.
• NVIDIA ($117.37) targets $175, riding a $35.6 billion data center revenue surge.
• Palantir ($119.15) aims for $140, despite skepticism, with its $883M Q1 revenue proving demand.

Ives’ call is clear: “This isn’t just a tech cycle—it’s a transformation. These three stocks are the foundation of it.” In an era where AI is the new electricity, owning the companies that power it is no longer optional—it’s essential.