Wedbush Securities analyst Dan Ives joined CNBC’s “Squawk Box” on Friday and predicted that Nvidia’s extraordinary fourth-quarter earnings will represent the start of a tech bull market that will continue into 2025.
What happened: Ives referred to Nvidia’s CEO Jensen Huang as the “Godfather of Artificial Intelligence” and said that Nvidia has laid the foundation for future spending to build AI infrastructure. Ives predicts that the “tidal wave” of spending on AI development will benefit AI-related infrastructure, software and services companies.
“We think that for every dollar spent on a GPU, there can now be a multiplier of $10, $12… in software and chips,” Ives said.
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Because matter: Ives pointed to companies including MongoDB, Inc. MDB, Palantir Technologies, Inc. PLTR AND Snowflake, Inc. TO SNOW well positioned to benefit from the development of artificial intelligence.
Ives sees supply and regulatory issues as temporary roadblocks, but believes the AI revolution and associated monetization are only just beginning.
“Is this a 1995 moment or a 1999 moment? Our response is firm and confident: This is a 1995 moment as now the AI revolution and trillions of dollars of incremental spending over the next decade are hitting the tech sector The AI party is just getting started,” Ives published ON X Friday.
NVDA, MDB, PLTR, SNOW Price Action: According to Benzinga Pro, Nvidia shares closed 0.36% higher at $788.17, MongoDB shares closed 0.34% higher at $451.52, Palantir shares closed 0.0% lower, 7% to $22.99 and Snowflake shares closed 1.65% higher at $229.34 on Friday.
Image: Pete Linforth from Pixabay