- Dan Ives from Wedbush Securities reports a 12 to 15% increase in semiconductor demand since October, attributing it to an AI boom, particularly beneficial for Nvidia (NVDA), which he sees as a potential $4 to $5 trillion market cap company due to its unmatched AI chip technology.
- Ives predicts AI will continue to grow as part of IT budgets, currently at 10-15%, with enterprises eager to capitalize on AI’s potential despite concerns like tariffs, which he views as part of broader geopolitical maneuvers rather than significant market disruptors.
- For Apple (AAPL), Ives anticipates new product announcements will fuel an upgrade cycle and expand into emerging markets, potentially making Apple the first company to reach a $4 trillion valuation, with plans including middle-market focus and partnerships like with Alibaba (BABA) in China.
In a recent appearance on CNBC’s ‘Squawk on the Street’, Dan Ives, Wedbush Securities’ global head of technology research, shared his insights on the current state and future of the technology sector, with a particular focus on semiconductor demand, AI, and key players like Nvidia (NVDA) and Apple (AAPL). Ives reported a significant 12 to 15% increase in semiconductor demand since October, signaling strong market conditions, especially ahead of Nvidia’s next earnings report. He attributes this surge to an explosion in enterprise use cases for AI, suggesting that companies are eager not to miss out on the AI revolution, which he sees as having multiple layers of growth potential.
Nvidia remains a top pick for Ives, describing it as a “table pounder” with the potential to reach a $4 trillion to $5 trillion market cap. He emphasized Nvidia’s dominant position in the AI space, referring to CEO Jensen Huang as the “godfather of AI” due to the company’s unrivaled chip technology. He also noted that no enterprises have adjusted their plans despite potential market shifts, such as DeepSeek. This steadfast demand across both big tech and broader enterprise sectors underpins his optimistic outlook for Nvidia and the tech sector at large.
Addressing concerns about AI investment value, Ives countered with examples like Palantir (PLTR), which he sees as leading in AI monetization. He estimates AI currently comprises about 10% to 15% of IT budgets, a figure he anticipates will grow as demand continues to outstrip supply. Despite potential tariff issues, Ives believes they will not significantly hinder the AI revolution, viewing them as part of a larger geopolitical “poker game” between major powers, with less concern in Asia about tariffs than previously.
On Apple, Ives is bullish, expecting the company to announce new products that will not only fuel an upgrade cycle but also broaden Apple’s market reach, especially in emerging markets like India. He sees Apple moving beyond just high-end products to capture the middle market, enhancing its presence with innovations like Apple Intelligence and partnerships in China, predicting Apple to be the first tech company to hit a $4 trillion market cap, followed by Nvidia.
Ives concluded his discussion with a light-hearted note on the popularity of his jackets in Asia, reflecting a blend of business acumen with personal charm, reinforcing his confidence in the tech sector’s growth trajectory amidst various challenges.
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