Wedbush Securities Managing Director Dan Ives on Monday sounded a bullish note for the artificial intelligence sector, stating that Nvidia Corp.’s (NVDA) upcoming second-quarter earnings will be another “flex the muscles moment” for the AI giant.
In a post on X, Ives also underscored that Wall Street is underestimating the demand curve for the AI revolution being led by Nvidia.
“The Street continues to underestimate the demand curve for the AI Revolution being led by Nvidia and this week’s earnings will be another flex the muscles moment for Nvidia and the AI Revolution bull thesis,” Ives said in the post.
He added that Nvidia’s semiconductor chips are fueling the AI revolution worldwide.
Nvidia’s shares were down 0.58% in Monday’s opening trade. Retail sentiment on Stocktwits around the company was in the ‘bullish’ territory.
Ives’ optimism about Nvidia comes ahead of the AI bellwether’s second-quarter (Q2) results, scheduled for Wednesday. Wall Street expects Nvidia to report an earnings per share (EPS) of $1.01 during the quarter, up from $0.68 during the same period a year ago, according to Stocktwits data. Revenue is expected to rise to $45.94 billion in Q2, up from $30.04 billion in the year-ago period.
Earlier on Friday, the tech bull brushed aside AI bubble concerns, days after OpenAI co-founder and CEO warned about one forming right now. Ives advised investors to remain focused and not get too nervous following the recent correction in technology stocks, adding that there will be phases when stocks decline.
He also picked a list of AI winners and losers, with Nvidia finding a spot in the winners list. NVDA stock is up 32% year-to-date and 37% over the past 12 months.
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