Top Wedbush analyst Daniel Ives is optimistic about the Nasdaq Composite rising to 30,000 points over the next year. In an interview with CNBC’s Squawk Box Europe, Ives expressed confidence about the ongoing artificial intelligence (AI) boom, backed by the recent earnings season.
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Trade NVDA with leverageOn Monday, the Nasdaq Composite closed at 26,274.13. It has gained 13% year-to-date.
Top Wedbush Analyst Is Bullish on the AI Boom
Heading into the March quarter earnings season, investors were concerned about AI stocks and their valuations. “These earnings have validated the AI bullish thesis,” believes Ives. The 5-star analyst contends that we are still in the early days of the AI revolution, with demand massively outpacing supply (by about 10 times).
Ives dismissed skeptics who think that AI is overhyped or that the rally is nearing an end. “The haters will hate, and we know that,” said Ives. For instance, on Friday, Michael Burry of “Big Short” fame warned that the stock market’s excitement about AI is starting to mirror the last months of the 1999-2000 dot-com bubble.
In contrast, Ives expects the AI rally to continue for another two years. Specifically, the analyst highlighted the “memory super-cycle,” with the accelerated AI infrastructure buildout driving massive demand for memory chips. Ives is very bullish on SK Hynix (HXSCL) and other memory companies, given the unprecedented demand backdrop.
The analyst suggested that investors should not own stocks in only one subsector, such as chips, but should look for opportunities in other AI-related areas. “It’s about playing the hyperscalers — of course chips, then you have to play software, cybersecurity, infrastructure [and] power.”
Ives ranks no. 484 among more than 12,200 analysts tracked by TipRanks. He has a success rate of 55%, with an average return per rating of 15.5% over a one-year period.
AI Stocks Rally
Over the past month, several AI stocks have seen notable gains, thanks to improving investor sentiment amid a strong earnings season and massive spending. Shares of Micron Technology (MU), SanDisk (SNDK), Advanced Micro Devices (AMD), Intel (INTC), Alphabet (GOOGL), and Nvidia (NVDA) have risen 89%, 82%, 87%, 108%, 23%, and 16%, respectively, over the past month.
Using TipRanks’ Stock Comparison Tool, let’s look at Wall Street’s ratings on these stocks.
Interestingly, Wall Street has a Strong Buy consensus rating on all the above-mentioned stocks, except for Intel. Analysts’ bullish stance reflects optimism about AI-driven demand. While Intel’s prospects have improved following support from the Trump administration and Nvidia, several analysts await consistent performance and strong execution.
