A veteran technology analyst says the dissemination of artificial intelligence (AI) will continue to drive tech stocks higher this year, with megacaps like Nvidia leading the way.
Dan Ives, managing director and senior equity analyst at Wedbush Securities, told BNN Bloomberg in a Thursday interview that he expects strong results from Nvidia when the chipmaker reports quarterly earnings later this month.
“This is the Superbowl, the Olympics – from an earnings perspective,” he said, adding that Nvidia’s results are “the best barometer” for the trajectory of tech stocks.
“We believe it’s a ‘get the popcorn out’ moment. This is going to be a robust one, and I think you’re seeing all the breadcrumbs leading to this AI revolution is just starting.”
Ives said that he’ll be watching closely for demand indicators in Nvidia’s earnings report on Aug. 28, which he expects to remain strong.
“I think it’s really about what the demand trajectory looks like; are they seeing more order flow? We don’t believe this is double ordering, it’s actually the opposite,” he said.
“This is probably the most important earnings call and conference call in the last few years because of where we are as a market needing to get the barometers.”
Ives dismissed the idea that the rapid rise of AI stocks over the past year has created a bubble, saying the bull run was driven mainly by strong fundamentals.
He argued that comparisons between AI stocks today and tech stocks in the late 90s prior to the dot-com bubble are “apples to oranges.”
“Now you’re talking about companies that have a trillion dollars combined on their balance sheets in terms of big tech. We’re not talking about startups in terms of that environment where everything’s kind of in the future,” he added.
“This is what I believe is the fourth industrial revolution.”
