Closely followed technology analyst Dan Ives says he is more bullish on artificial intelligence (AI) after chipmaker Nvidia’s (NVDA) latest financial results.
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Specifically, the Wedbush Securities analyst says that the AI boom is not in a bubble but the early stages of a decades-long transformation. In a note to clients, Ives says that Nvidia’s latest results were “an extremely important moment in the AI Revolution thesis” and that “this is a 1996 Moment… and NOT a 1999 Moment” for technology stocks.
Ives was referring to the internet stock boom that accelerated in 1996 before a bubble in internet-related stocks burst in 1999. The analyst stresses that the latest comments from Nvidia CEO Jensen Huang should allay investor worries about overheated stock valuations.
Nvidia’s Mic Drop
According to Ives, Nvidia’s financial results were “a drop the mic quarter/guidance” that cut through worries about long-term capital expenditures by the mega-cap technology companies that are racing to build AI infrastructure.
Ives bullish remarks come after Nvidia reported 65% year-over-year profit growth and 62% sales growth for this year’s third quarter. The chipmaker also guided for 65% revenue growth in the current quarter amid strong demand for its Blackwell and Rubin line of processors.
Dan Ives concludes his note to clients by arguing that the AI boom is currently in “Year 3 of a 10-year build out of this 4th Industrial Revolution.”
Is NVDA Stock a Buy?
The stock of Nvidia has a consensus Strong Buy rating among 39 Wall Street analysts. That rating is based on 37 Buy, one Hold, and one Sell recommendations issued in the past three months. The average NVDA price target of $252.05 implies 35.13% upside from current levels. These ratings could change after Nvidia’s financial results.
