Dan Ives Predicts $3 Trillion AI Spending Over Next Three Years, Sees Strong Earnings Ahead

Written by Emily J. Thompson, Senior Investment Analyst

MDB+2.71%

PLTR-3.45%

SNOW+1.27%

Source: Benzinga

Updated: 20h ago

0mins

Source: Benzinga

AI Spending Outlook: Dan Ives predicts that AI spending will reach $3 trillion over the next three years, with over $550 billion in capital expenditures already underway, indicating that the market is underestimating the long-term potential of AI, which could lead to significant investment opportunities being overlooked.
Strong Enterprise Demand: Ives highlights robust enterprise AI demand from major tech companies like Microsoft, Alphabet, and Amazon, expecting that upcoming fourth-quarter earnings will validate this trend and further bolster market confidence in AI.
Growth Potential for Snowflake: Snowflake Inc. serves as a quintessential AI consumption proxy, with increasing AI workloads driving consumption revenue; currently, its enterprise value is significantly lower than peers, suggesting the market is undervaluing its future growth prospects.
Key Contracts for Palantir: Palantir Technologies Inc. has secured multi-year contracts exceeding $100 million in defense and healthcare, indicating that its AI-driven platform is transitioning from proof-of-concept to mission-critical, which is expected to enhance cash flow and margin expansion significantly.

MDB

$399.76+Infinity%1D

Analyst Views on MDB

Wall Street analysts forecast MDB stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MDB is 381.24 USD with a low forecast of 250.00 USD and a high forecast of 440.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

31 Analyst Rating

26 Buy

5 Hold

0 Sell

Strong Buy

Current: 389.200

Low

250.00

Averages

381.24

High

440.00

Current: 389.200

Low

250.00

Averages

381.24

High

440.00

Truist

Buy

maintain

$450 -> $500

Al Analysis

2026-01-07

Reason

Truist

Price Target

$450 -> $500

Al Analysis

2026-01-07

maintain

Buy

Reason

Truist raised the firm's price target on MongoDB to $500 from $450 and keeps a Buy rating on the shares. Over the past year, a clear split has emerged between AI winners and losers, with seat-based business models down an average of 34% while other companies gained 24%, the analyst tells investors in a research note. This bifurcated sentiment is expected to continue driving a valuation gap in 2026, though some of last year's underperformers may rebound, the firm says.

Needham

Buy

maintain

$480 -> $500

2026-01-06

Reason

Needham

Price Target

$480 -> $500

2026-01-06

maintain

Buy

Reason

Needham raised the firm's price target on MongoDB (MDB) to $500 from $480 and keeps a Buy rating on the shares. The firm highlights MongoDB a Top Pick in 2026 and added the stock to its Conviction List. It removed GitLab (GTLB) from the list. MongoDB posted improved results throughout fiscal 2026 with reaccelerating Atlas growth, the analyst tells investors in a research note. The firm expects the company to exit fiscal 2026 with more than $2B of Atlas annual recurring revenue, with line of sight to over $2.5B in fiscal 2027. Needham thinks MongoDB's "technological leadership and stickiness among customers" at the database layer provides a "strong position to drive durable growth."

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Oppenheimer

Ittai Kidron

Outperform

maintain

$450 -> $490

2026-01-05

Reason

Oppenheimer

Ittai Kidron

Price Target

$450 -> $490

2026-01-05

maintain

Outperform

Reason

Oppenheimer analyst Ittai Kidron raised the firm's price target on MongoDB to $490 from $450 and keeps an Outperform rating on the shares. The firm believes MongoDB is technically differentiated by its document model, combined with fully integrated search and vector search, positioning it for strong performance in 2026.

RBC Capital

Rishi Jaluria

Outperform

maintain

$450 -> $500

2026-01-05

Reason

RBC Capital

Rishi Jaluria

Price Target

$450 -> $500

2026-01-05

maintain

Outperform

Reason

RBC Capital analyst Rishi Jaluria raised the firm's price target on MongoDB to $500 from $450 and keeps an Outperform rating on the shares. 2026 is likely to be a year when AI tailwinds become more evident for companies well positioned for enterprise AI adoption, while less prepared peers may remain pressured by the "AI is the death of software" narrative, the analyst tells investors in a research note. Enterprise spending appears to be stabilizing and improving in select areas, with GenAI driving innovation even as management teams remain conservative in early 2026 guidance, the firm says.

About MDB

MongoDB, Inc. is a developer data platform company. Its developer data platform is a globally distributed operational database integrated with a set of data services that allow development teams to address the growing variety of application requirements. Its customers can implement its developer data platform as a managed service offering, or they can choose a self-managed option. Its MongoDB Atlas is its managed multi-cloud database-as-a-service (DBaaS) offering that includes an integrated set of databases and related services. Atlas Vector Search allows the integration of an operational database and vector search in a unified, fully managed platform. MongoDB Enterprise Advanced is its proprietary self-managed commercial offering for enterprise customers that can run in the cloud, on-premises or in a hybrid environment. It also provides professional services for its customers.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.