Nvidia Is Still The ‘Rocky Balboa Of The AI Revolution,’ Says Wedbush’s Dan Ives

• Concerns have risen about a potential deal between Meta and Alphabet’s Google, which could take away market share from Nvidia.
• Ives noted that Nvidia’s role in the AI revolution would not be changing for another few years. 
• The analyst added that CEO Jensen Huang still holds the best vantage point on global AI demand.

Dan Ives, managing director at Wedbush Securities, said on Wednesday that he views Nvidia (NVDA) as "the foundation for the AI Revolution” and the “Rocky Balboa champion of the AI Revolution.”

The comments from Ives come after Nvidia shares face pressure over Meta Platforms (META) reported decision to spend on Google’s Tensor Processing Units (TPUs) for its data centers.

“With trillions set to be spent over the coming years, many Big Tech players such as Google/Broadcom on the TPU chip front will benefit besides Nvidia on the chip front,” Ives said in a post on X. He added that this should not be mistaken for Nvidia being the “indisputable Rocky Balboa champion of the AI Revolution.”

Nvidia’s Role In AI

Concerns have risen about a potential deal between Meta and Alphabet’s (GOOGL, GOOG) Google, which could take away market share from Nvidia. Ives noted that this news would not shake Nvidia CEO Jensen Huang.

"The Godfather of AI Jensen, having the best perch and vantage point to discuss overall enterprise AI demand and appetite for Nvidia's AI chips looking forward,” he added.

Google's (GOOGL) TPU chips, along with its key partner Broadcom (AVGO), are gaining some clear momentum in the AI market, Ives pointed out. That said, he added that the AI Revolution "starts and ends with Nvidia today."

Ives noted that Nvidia’s role in the AI revolution would not be changing for another few years. 

What Is Retail Thinking?

Nvidia shares were down nearly 1% in premarket trading on Wednesday. Retail sentiment on Nvidia remained unchanged in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

A bearish user on Stocktwits noted that Nvidia stock could hit a low of $150 in the next few weeks.

GOOGL stock was up 1% before the bell. Retail sentiment on Alphabet remained unchanged in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels.

A user on Stocktwits noted that Alphabet stock “deserves this day in the sun.”

Shares of Nvidia have gained over 32% this year, and GOOGL stock has jumped nearly 71% in the same period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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