Dan Ives Calls Microsoft 'Rodney Dangerfield' Of AI — Investors Are Giving It 'No Respect'

Wedbush analyst Dan Ives believes Wall Street is making a critical mistake by underestimating Microsoft Corp. (NASDAQ:MSFT), arguing the tech giant is getting “no respect” despite being poised for massive AI-driven growth in 2026.

The ‘Table Pounder’ Opportunity

In a Dec. 22 CNBC interview, Ives compared Microsoft to the legendary comedian Rodney Dangerfield, suggesting that despite its dominance, the company is treated with skepticism by investors.

He described the stock as a “table pounder,” emphasizing that the market is failing to price in the explosive growth of Microsoft's cloud computing platform, Azure.

Adding to his thesis, Ives said that “Investors give it (MSFT) no respect. It’s almost a Rodney Dangerfield of software, the way they’re treating it.”

“I think investors are underestimating the growth,” Ives noted, stating that his firm has seen deal accelerations of 25% to 30% in the last month alone. With only 3% of U.S. companies having fully embarked on their AI paths, Ives argues the true “monetization” of these technologies will hit its stride in 2026.

See Also: Microsoft On Path To $5 Trillion Market Cap: Analyst Says ‘AI Revolution Hits Next Gear’

Forecasting A 2026 Rally

While acknowledging recent “white knuckle moments” and pressure on tech valuations, Ives remains adamantly bullish. He predicts that street estimates for Microsoft's growth are too low by 15% to 20% for the coming fiscal year.

According to Ives, the bearish sentiment that has played out in recent weeks will not survive the new year. He projects that tech stocks generally could surge 20% to 25% in 2026 as high-value use cases for AI finally explode.

Wedbush has maintained an ‘Outperform’ rating on Microsoft, with price targets recently hovering around the $600 to $625 mark, signaling a belief that the stock has significant runway ahead.

Broader Tech Optimism

Ives dismissed concerns about an AI bubble, pointing to Nvidia Corp. (NASDAQ:NVDA) as further proof of sustained demand. He noted that demand for Nvidia chips currently outstrips supply by a ratio of 12-to-1.

“They're not going to win next year,” said Ives, pointing to the bears, advising investors to look past short-term volatility and focus on the long-term AI revolution.

Microsoft Underperforms The Market In 2025

Despite a 15.85% year-to-date gain, MSFT’s returns fall short of the Nasdaq 100’s 21.39% advance in the same period.

Meanwhile, the stock has declined by 0.22% over the last six months and higher by just 11.41% over the last year.

It maintains a stronger price trend over the long term but a weak trend in the short and medium terms, with a solid quality. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.

Read Next:

• icrosoft CFO Amy Hood Says Cloud Revenue Figures ‘Could Be Higher,' But Azure Is ‘Short On Capacity' As AI Demand Soars

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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