The digital gold rush of the last two years has officially moved from the cloud to the streets.
In a series of high-energy appearances on CNBC this week, Wedbush Securities analyst Dan Ives declared 2026 the year of “Physical AI” – the moment where artificial intelligence sheds its screen-bound skin to inhabit robots, vehicles, and handheld devices.
Ives – known for his relentless bullishness on the US tech sector – argued that the “fourth industrial revolution” has reached a tipping point, and the following three “best in the world” names own the intersection of silicon and steel.
Tesla Inc (NASDAQ: TSLA)
For Dan Ives, the EV maker has ceased to be a mere car company – and has transformed into the preeminent physical AI play on the planet.
In a recent CNBC interview, Ives dismissed concerns over quarterly delivery fluctuations – urging investors to look at the “golden year” ahead.
He believes Tesla Inc.’s valuation is anchored by two transformative physical technologies: Full Self-Driving (FSD) and the Optimus humanoid robot.
Ives famously noted that while others see a car company, he sees an “embodied AI” powerhouse.
As FSD adoption leaps toward 50% and autonomous “Cybercabs” hit the streets in 30 cities by the end of 2026, Tesla’s margin story will shift from automotive to high-scale software, he concluded.
Nvidia Corp (NASDAQ: NVDA)
No discussion of physical AI is complete without the man Ives calls the “Godfather of AI”, Jensen Huang.
Ives reiterated on “Squawk Box” that Nvidia remains the bedrock upon which the entire physical AI ecosystem is built.
From massive compute power required to train autonomous fleets to the specialized chips driving industrial robotics, Nvidia’s hardware is the “oxygen” of the industry.
Ives argued that the company remains four to five years ahead of any serious competitor, creating a moat that is effectively impenetrable.
“It’s Nvidia’s world, and everyone else is paying rent,” Ives quipped – emphasizing that the shift toward physical robotics only deepens the global dependency on Nvidia’s hardware.
Apple Inc (NASDAQ: AAPL)
While Tesla moves bodies and Nvidia moves data, Apple Inc is Ives’ pick for the “invisible” yet massive physical AI upgrade cycle.
Ives argues that 2026 is the “prove it” moment for Cupertino, as the multinational finally integrates generative AI into the pockets of billions.
He pointed to the expected formal partnership with Google Gemini and the launch of AI-enabled iPhone hardware as the catalysts for a historic upgrade cycle.
To Ives, the iPhone is the ultimate “physical AI device” because it serves as the primary interface between the average consumer and the AI revolution.
He predicts that this shift will unlock billions in recurring, high-margin revenue – potentially pushing AAPL’s valuation toward the $5 trillion mark as Siri transforms into a proactive, physical-world assistant.
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