Wedbush Analyst Dan Ives Sees Recent Tech Sell-Off as Buying Opportunity

Tech stocks have declined recently, but Wedbush analyst Dan Ives sees the dip as a "buying opportunity." He believes the current rally is driven by the AI boom and expects the bull cycle to stay intact for another two to three years. Ives remains bullish on Nvidia, expecting strong demand and the company to continue driving the AI revolution.

Tech stocks have been under pressure recently, but Wedbush Securities analyst Dan Ives sees this dip as a "buying opportunity." According to Ives, the current rally is driven by the AI boom, and he expects the bull cycle to stay intact for another two to three years. Ives remains bullish on Nvidia (NVDA), expecting strong demand and the company to continue driving the AI revolution.

Ives recently updated his "AI 30" list of companies that he believes will define the future of the AI theme. He added CrowdStrike, Roblox, GE Vernova, and Nebius to the list, while removing Adobe, C3.ai, Elastic, and CyberArk [2]. These changes reflect the analyst's view that these companies are better positioned to capitalize on the AI boom.

Nvidia has been a significant beneficiary of the AI boom. The company's stock price has risen significantly in recent months, driven by strong earnings reports and positive analyst sentiment. Cantor Fitzgerald recently raised its price target for Nvidia to $240, citing the company's Blackwell accelerator ramp as a key driver for renewed AI-compute growth [1]. The analyst expects Nvidia to report strong earnings for the current quarter, with revenue projected at $48.0 billion and EPS at $1.06, compared to Street consensus.

However, Nvidia faces several challenges, including geopolitical risks and competition from rivals like Advanced Micro Devices (AMD). The company recently secured approval to resume H20 chip sales to China under an arrangement requiring 15% of revenue to be paid to the U.S. government. However, Chinese regulators are reportedly discouraging domestic firms from purchasing these chips as municipalities target 70-90% self-sufficiency in AI chips by 2027 [3].

Despite these challenges, Nvidia's strong position in the data center GPU market and its technological leadership continue to drive investor confidence. The company's data center segment now accounts for nearly 90% of revenue, and its new Blackwell architecture offers 50x faster AI inference than previous generations. Nvidia maintains an impressive 92% market share in data center GPUs and is currently producing approximately 1,000 NVL72 systems weekly, equivalent to 3.7 million Blackwell GPU chips annually [3].

In the short term, investors should continue to monitor risks around China sales, valuation levels, and the potential for a deeper market rotation away from tech leaders. However, the overwhelming majority of Wall Street analysts remain bullish on Nvidia, projecting that revenues could reach $300 billion by 2026 driven by AI adoption [3].

References:
[1] https://www.tradingview.com/news/gurufocus:2f38fb744094b:0-nvidia-stock-rises-as-cantor-fitzgerald-lifts-target-to-240-on-blackwell-ai-boom/
[2] https://sherwood.news/markets/dan-ives-freshens-up-list-of-favorite-ai-stocks-with-additions-of/
[3] https://finance.yahoo.com/news/bullish-analysts-options-traders-expect-160435272.html