Nvidia and a $1 trillion AI boom will boost tech stocks, Dan Ives says
Worries about whether artificial intelligence investments will pay off may have rocked markets recently, but Wedbush Securities tech analyst Dan Ives says the tech boom is set to continue. Nvidia shares in particular were hit in recent weeks , before rebounding last week and lifting other tech names as well. Nvidia is set to continue driving tech higher, Ives told CNBC’s ” Street Signs Asia ” on Monday. “Everything we’re seeing from … Nvidia … this party is going to continue … for the next six to eight quarters, because we’re actually seeing demand accelerating,” he said. “I believe this fourth industrial revolution is just starting, and now second, third, fourth derivatives [are] playing out across the pack — Oracle , Microsoft , Palantir , front and center,” he concluded, adding that that includes the areas of software, infrastructure, internet and smartphones. He’s also optimistic that the tech supply chain is set for more growth, saying that use cases are continuing to expand, which is good news for related components. Ives estimated that AI capital expenditure is set to reach around $1 trillion. “The tech supply chain is gearing up for an unprecedented period of growth being driven by the roughly $1 trillion of AI capex we estimate is on the horizon the next few years for the tech world,” he wrote in a separate Sept. 15 note with other Wedbush analysts. Ives said tech stocks are set to move higher into the end of the year and 2025, thanks to AI spending, the start of a U.S. rate-cutting cycle and an assumed “soft landing.” Wedbush estimates that for every $1 spent on an Nvidia graphics processing unit chip , there’s an $8 to $10 “multiplier” across the tech sector. “Nvidia has changed the tech and global landscape as its GPUs have become the new oil and gold in the IT landscape with its chips powering the AI Revolution and being the only game in town for now,” the note said.
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