Dan Ives Says He'd Own NVDA Over INTC Every Day: 'There's Only One Godfather Of AI, And That's Jensen'

• Ives said investors are looking beyond the obvious names to identify the next opportunity, while explaining the surge in INTC stock.
• He said there will be areas of froth, and investors will have to separate the winners from the losers while trying to see if they can grow enough to justify their valuations.
• The tech bull sees the Nasdaq Composite soaring to 30,000 in the coming years. 

Dan Ives, Global Head of Tech Research at Wedbush, stated on Monday that he would rather own Nvidia Corp. (NVDA) stock than Intel Corp. (INTC) every day.

During an interview with CNBC, Ives explained that his preference for Nvidia over Intel is based on Nvidia’s dominance in the artificial intelligence (AI) sector.

“There’s only one godfather of AI, and that’s Jensen. Everything starts… the hearts and the lungs of AI… is Nvidia,” Ives said.

Ives’ comments come amid a massive rally in the INTC stock, which has surged nearly 112% over the past month. At the time of writing, Intel shares were up nearly 7%, after closing about 14% higher on reports that the company has reached a preliminary agreement with Apple Inc. (AAPL) to make chips for some of the iPhone-maker’s products.

Ives Says Investors Are Trying To Figure Out The Next Opportunity

Ives stated during the interview that investors are looking beyond the obvious names to identify the next opportunity, while explaining the surge in INTC stock.

“It’s all about the second, third, and fourth order derivatives. And investors are trying to figure out… You look at it [Nvidia] and obviously that’s been the historic trade. Now, is it Intel? Do you own AMD? Do you play the memory supercycle…” he added.

Ives said there will be areas of froth, and investors will have to separate the winners from the losers while assessing whether they can grow enough to justify their valuations.

Ives Explains What’s Driving Surge In Chip Stocks

Ives stated that demand for chips is outstripping supply by a factor of 10.

“These earnings have validated the AI bullish thesis. We’re still in the early days of the AI revolution. The haters will hate… but we’re going to be talking about tech stocks for years,” he added.

The tech bull sees the Nasdaq Composite soaring to 30,000 in the coming years. It is currently hovering around the 26,250 level, after rallying nearly 13% this year.

Ives Says He Is Bullish On MU, SNDK

The analyst stated that he has a bullish outlook on memory stocks, including Micron Technology Inc. (MU) and SanDisk Corp. (SNDK).

“It’s a memory supercycle. When it comes to SK Hynix, Micron, SanDisk… we’re very bullish in terms of what we’re seeing there, and that’s not going to end anytime soon,” Ives added.

Beyond chip and memory stocks, Ives said investors should also consider software, cybersecurity, infrastructure, and power stocks. He added that investors cannot just own one subsector; they should also look into other AI derivative plays.

Ives also stated that the selloff in the ServiceNow Inc. (NOW) is overdone, noting that the company will ultimately be able to monetize the AI revolution. 

INTC stock is up 238% year-to-date, while NVDA stock is up 15%. The S&P 500 ETF (SPY) is up 31% over the past 12 months, while the Invesco QQQ Trust ETF (QQQ) is up 46%.

MU stock has gained 777% during this period, while SNDK stock is up 4,162%.

Also See: This Geospatial Stock Is Up Over 300% This Year, And Analysts See A 32% Further Upside

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