Dan Ives says AI-related M&A 'floodgates' are about to open. Here are his takeover picks (www.cnbc.com)

Wedbush analyst Dan Ives warned that a new wave of AI-related M&A is imminent as Big Tech and private equity race to buy capabilities, talent and infrastructure to stay competitive. He argues the regulatory environment has become more permissive under recent administrations, lowering hurdles for dealmaking, and points to recent transactions — Core Scientific’s $9B data-center sale to CoreWeave, Palo Alto Networks’ $25B CyberArk deal and NiCE’s near-$1B purchase of generative-AI firm Cognigy — as early signs of the trend. Ives named C3.ai and SanDisk among likely takeover targets and singled out Apple and IBM as the most acquisitive large players poised to “catch up” in AI. The significance for AI/ML is twofold: a sustained consolidation phase (Ives forecasts 5–10 years) will accelerate integration of niche models, datasets and infrastructure into broad product portfolios, while deal-driven aggregation could rapidly scale enterprise and federal AI deployments. Technically, expect acquisitions to focus on data centers, chips, model IP, security tooling and verticalized generative-AI platforms — assets that shorten time-to-market and offer immediate revenue synergies. The dynamic could boost valuations for specialized AI firms, reshape competitive moats, and concentrate key capabilities within a smaller set of deep-pocketed incumbents. Source: Wedbush Securities.