Wedbush analyst Dan Ives remains bullish on AI stocks, predicting Apple Inc. (AAPL  -7.29%) will be the first to reach a $4 trillion market cap, followed by Nvidia Corporation (NVDA  -7.36%), despite concerns over tariffs and rising competition from China's DeepSeek.

What Happened: On Wednesday, Ives took to X, formerly Twitter, and reiterated his bullish stance on AI stocks and shared a link to his appearance on CNBC's Squawk Street.

"The bears can't see AI in the spreadsheets while in their hibernation caves... we focus on $325 billion of Big Tech Capex fueling this AI Revolution as the tech leaders of the future like Nvidia and Palantir (PLTR  -11.47%) lead tech higher in 2025," he posted.

On CNBC's Squawk Street, Ives reiterated his confidence in Nvidia, calling it "a table pounder" and predicting it will reach a $5 trillion market cap in the future.

Ives noted a significant 12% to 15% increase in semiconductor demand since October. "I think it just shows these enterprise use cases are exploding and that is really accelerating demand because no one wants to sort of lose their spot in line," he said.

Despite concerns over tariffs and valuation worries, Ives remains optimistic about the tech sector's growth, predicting a 25% increase in tech stocks this year.

When asked about AI adoption in enterprise software, Ives pointed to Palantir Technologies Inc. as the "golden child" of AI-driven monetization.

Ives also dismissed concerns of China's DeepSeek R1 model undercutting U.S. firms. "From a DeepSeek perspective, 45-50 enterprises-not one has changed plans," he noted.

On Apple, Ives said, "The first one to hit $4 trillion will be Apple in our opinion, followed by Nvidia." He attributed this to Apple's strategic focus on emerging markets and its partnership with Alibaba in China.

Why It Matters: Major tech companies are heavily investing in artificial intelligence. Companies like Amazon.com Inc. (AMZN  -4.15%), Meta Platforms Inc. (META  -5.06%), Microsoft Corp. (MSFT  -3.56%), and Alphabet Inc. (GOOG  -3.20%) (GOOGL  -3.40%) are expected to spend a record $320 billion on AI infrastructure by 2025, up from $246 billion in 2024.

Nvidia is expected to report its fiscal fourth-quarter earnings on Thursday, Feb. 26 following the market close.

Price Action: Nvidia's stock declined 0.17% in after-hours trading to $139, following a 0.12% drop earlier on Wednesday, closing at $139.23, according to Benzinga Pro. Apple's stock dipped 0.029% after hours to $244.80, after gaining 0.16% during regular trading, closing at $244.87.