Wedbush's Daniel Ives, who has been increasingly bullish about his "AI revolution" thesis, thinks that we're just beginning to enter this cycle and the "popcorn" is just getting out.
What Happened: Ahead of the hotly anticipated AI announcement from Nvidia Corp. NVDA next week, Ives thinks we're just getting started with the AI party.
"Right now, it's [Nvidia's] world and everyone is just paying rent," Ives said during an interaction on “Bloomberg Surveillance” this week.
"It's a 1995 moment. This AI revolution, this party … it's getting the popcorn out. It's 10 p.m. in a party that goes to 4:30 a.m."
Ives expects Nvidia to remain at the center of this AI revolution that he is increasingly optimistic about. The Jensen Huang-led company is all set to make a crucial announcement at its annual AI conference, GTC 2024, next week.
"It's a grand event for the godfather of AI, Jensen, to talk about what we see in terms of AI demand, H200 … in terms of some other technology changes that we're going to see in the AI ecosystem."
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"They are going to continue to rule the market. American Micro Devices Inc. AMD, Lisa Su, and others could benefit," Ives said, adding that it's primarily the Nvidia star that will shine bright.
The ‘1995’ Moment
Ives thinks that while Nvidia is ruling on the hardware front with its AI chips, on the software side, companies like Microsoft Corp. MSFT, the “Messi of AI” Palantir Technologies Inc. PLTR, Snowflake Inc. SNOW and Salesforce Inc. CRM, among others, stand to benefit due to the second-, third- and fourth-order effects.
"In terms of Mag 7 right now, that party … Apple Inc. AAPL, Tesla Inc. TSLA, they're knocking on the door, saying let us back in," said Ives, while underscoring the China exposure as a hindrance for the Tim Cook and Elon Musk-led companies.
As far as Tesla is concerned, Ives stressed that “now is NOT the time to throw in the towel" despite increasing negativity around the company.
Ives believes AI and full self-driving could drive the next phase of Tesla’s growth story and help it cross $1 trillion in market capitalization.
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