Dan Ives, a prominent analyst from Wedbush Securities, appeared on CNBC’s ‘Squawk on the Street’ to discuss the future prospects of Nvidia Corp. (NVDA), particularly in light of its recent showcase at the CES in Las Vegas. Ives described Nvidia CEO Jensen Huang’s speech at the event as more akin to a rock concert than a typical tech CEO presentation, underlining the excitement and strategic vision laid out for Nvidia’s upcoming years.
Ives emphasized Nvidia’s role in the expanding fields of robotics and autonomous technology, suggesting these sectors alone could represent a $1 trillion incremental market opportunity for Nvidia. He explained that this figure was derived from anticipating the massive use cases AI would have in these areas. Nvidia isn’t just seen as a hardware provider but as a pivotal player in shaping the future of AI applications, especially in autonomous systems where Tesla (TSLA) continues to be a significant partner.
He pointed out that the market might be underestimating Nvidia’s growth by as much as 25% to 30%. This underestimation, according to Ives, stems from several factors, including the demand for Nvidia’s Blackwell chips, which he described with a demand-supply ratio of 15 to 1. Additionally, he highlighted robotics and autonomous technology as potentially contributing an extra 20% to 25% to Nvidia’s top line in the next few years, marking a significant part of what he calls the “4th industrial revolution.”
When questioned about what a “ChatGPT moment” for robotics might look like, Ives envisioned a future where AI physically manifests in forms like advanced robotics in factories and consumer households. He predicted that within the next couple of years, we would move from advanced prototypes to practical, everyday applications, signaling the transition from early AI development to widespread adoption.
Despite acknowledging the current market’s reaction to higher yields affecting tech stocks, Ives remained bullish on Nvidia’s valuation. He argued that the AI revolution, backed by substantial capital expenditure projections, particularly from companies like Microsoft (MSFT) ramping up their CapEx, would drive tech earnings and growth far beyond current market expectations. He posited that even significant shifts in interest rates wouldn’t halt this technological and economic momentum, underlining Nvidia’s pivotal role in this landscape as “everyone else is paying rent” in what he perceives as “NVIDIA’s world.”
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