The S&P 500 is in record territory, but Wall Street might be underestimating just how far tech can go. Dan Ives, Managing Director And Senior Equity Research Analyst, Wedbush Securities joined TheStreet to explain why he expects the Nasdaq to climb another 15%, the S&P to hit 7,000.

Watch the full interview below:

Full Video Transcript Below:

CAROLINE WOODS: Dan, tech has had this really impressive recovery off the April lows. It’s trading at or near all time highs. What’s your outlook for the rest of the year?

DAN IVES: I think we’re going to continue to see new highs. And we’ve talked about you could be looking at S&P potentially 7,000 and NASDAQ. I think there could be another 15% higher because look it’s our view, the AI revolution is just hitting its next stage of growth from software to consumer to really the rest of the supply chain. And even though we have tariffs and obviously geopolitical, I think it’s going to be a risk on pretty significant going into the summer as well as the rest of the year.

CAROLINE WOODS: So what is it that gets the S&P to 7,000 and the NASDAQ up another 15%?

DAN IVES: Its numbers. I mean, I just believe Street’s underestimating numbers potentially for second half of the year, but especially into next year by upwards of 10% to 15% I think numbers go a lot higher because of the spending, and because we’re going to see 2 trillion of incremental spend next three years. And even when you start to think about now, sovereigns are starting to look at AII you look at that spreading geopolitically, despite some of the uncertainty there, you’re going to start to see it pop up more within Asia, within Middle East. And that’s bullish for NVIDIA. Bullish for Microsoft. Bullish for Palantir. Which speaks to my view. If you focus just on one year PE valuations you missed every transformational tech stock for the last 20 years.