Nvidia and Microsoft Lead AI Charge as Market Set to Skyrocket by 2027

According to Wedbush Securities, Nvidia (NVDA.US) and Microsoft (MSFT.US) are at the forefront of the AI revolution, with new evidence suggesting that the AI infrastructure market could expand tenfold by 2027. Analyst Dan Ives highlights the unprecedented demand for AI chips, driven by Nvidia under the leadership of AI pioneer Jensen Huang. This escalating demand is expected to trigger a wave of enterprise spending, potentially boosting the AI infrastructure market significantly.

Ives notes that AI-related expenses are now a major component of the tech supply chain. Generative AI projects are increasingly being launched across enterprises, indicating that AI-related initiatives will likely play a prominent role in 2025 IT budgets. This shift could unlock numerous AI use cases that have yet to be realized.

Although Nvidia and Microsoft currently spearhead AI advancements, other tech giants like Oracle (ORCL.US), ServiceNow (NOW.US), Palantir (PLTR.US), Salesforce (CRM.US), Dell (DELL.US), IBM (IBM.US), Apple (AAPL.US), and AMD (AMD.US) are also joining the AI movement. Ives predicts that the tech sector could see a substantial rise, with stocks surging over 10% by year-end and potentially another 20% by 2025, as the AI-led tech bull market progresses.

Ives points out that every dollar spent on Nvidia's GPU spawns an additional $8 to $10 in the tech industry. While Nvidia's GPUs have reshaped global markets, competitors like AMD are rapidly advancing to capitalize on the impending $1 trillion AI capital expenditure surge.

The explosive growth of use cases across enterprises signals that large-scale corporate AI demand is moving into its next phase, according to Ives. The implications for the tech industry and broader market are significant as AI continues to redefine business landscapes.