- Ives stressed that the core issue is not speculative hype but tangible investment.
- He added that corporate capital spending tied to AI buildouts continues to expand, reinforcing Nvidia’s dominance in high-performance chips.
- In his view, competitors are roughly three to four years behind, giving Nvidia a substantial lead.
Dan Ives, managing director at Wedbush Securities, reportedly said on Thursday that Wall Street is still failing to grasp the scale of demand driving Nvidia Corp.’s (NVDA) growth, particularly in artificial intelligence and data center spending.
The AI bellwether posted a Q4 revenue of $68.1 billion, 73% year-on-year growth and an earnings per share (EPS) of $1.62, both exceeding the analysts’ consensus estimates of $66.12 million and $1.54 respectively, according to Fiscal AI data.
‘Michael Jordan Like’ Quarter
Speaking to Bloomberg Television, Ives described Nvidia’s latest results in glowing terms, comparing its performance to that of basketball legend Michael Jordan and emphasizing the scale of its projected $78 billion in revenue for the upcoming quarter.
“The street continues to underestimate Nvidia’s demand. What we saw from Nvidia, the AI bubble eccentric gets thrown out the window.”
-Dan Ives, Managing Director, Wedbush Securities
Nvidia’s stock traded over 1% higher in Thursday’s premarket. On Stocktwits, retail sentiment around the stock flipped to ‘extremely bullish’ from ‘neutral’ territory the previous day, while message volume shifted to ‘extremely high’ from ‘high’ levels in 24 hours.
Capex And Data Center Demand Drive Thesis
Ives stressed that the core issue is not speculative hype but tangible investment. Corporate capital spending tied to AI buildouts continues to expand, reinforcing Nvidia’s dominance in high-performance chips that power large-scale computing workloads.
He contended that the company remains years ahead of rivals in both technology and ecosystem strength. In his view, competitors are roughly three to four years behind, giving Nvidia a substantial lead as enterprises and governments accelerate spending on AI-driven data centers.
In a post on the X platform, Ives projected that Nvidia could reach a $6 trillion market capitalization by 2027, calling the current period only the early chapter of a sweeping technology transformation.
The China Conundrum
Nvidia continues to face uncertainty over its China business, as, according to a CNBC report, republican lawmakers are escalating efforts to tighten U.S. oversight of advanced semiconductor exports to China.
The House Foreign Affairs Committee advanced legislation that would allow lawmakers a 30-day window to examine and potentially block exports of modern chips to adversarial nations.
NVDA stock has gained over 30% in the last 12 months.
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