Wedbush Securities analyst Dan Ives recently made a bold prediction on CNBC’s “Squawk Box,” stating that Nvidia’s impressive fourth-quarter earnings mark the beginning of a tech bull market that will extend into 2025. This prediction comes on the heels of Nvidia CEO Jensen Huang being referred to as the “Godfather of AI” by Ives, highlighting the company’s pivotal role in laying the foundation for future spending on AI infrastructure.
Ives anticipates a significant increase in spending on AI-related infrastructure, software, and services, which he believes will benefit companies involved in these sectors. He suggests that for every dollar spent on a GPU, there could be a multiplier effect of $10 to $12 into software and chips. This forecast aligns with the growing importance of AI technology in various industries and the potential for substantial growth in the AI sector.
In particular, Ives mentioned companies like MongoDB, Palantir Technologies, and Snowflake as well-positioned to capitalize on the AI build-out. Despite potential challenges related to supply chain issues and regulatory hurdles, Ives remains confident that the AI revolution is just beginning and that there is enormous potential for monetization in this space.
Comparing the current situation to historical tech booms, Ives stated, “Is this a 1995 or 1999 Moment? Our answer is firm and confident: this is a 1995 Moment as now the AI Revolution and $1 trillion of incremental spending over the next decade is hitting the tech sector. AI party just starting.” This optimistic outlook reflects the transformative impact that AI technology is expected to have on the tech sector in the coming years.
In terms of stock performance, Nvidia, MongoDB, Palantir, and Snowflake saw mixed results in trading following Ives’ comments. Nvidia shares closed up slightly, while MongoDB and Snowflake experienced modest gains and Palantir shares closed lower.
Overall, Ives’ bullish outlook on the tech sector, driven by the growth of AI technology, highlights the potential for significant opportunities in the industry. As companies continue to invest in AI infrastructure and services, the sector is poised for substantial growth and innovation in the years to come.
