Nvidia Corp (NASDAQ:NVDA, ETR:NVD) shares dipped, Palantir Technologies Inc (NYSE:PLTR) wobbled, and the familiar cries of “tech bubble” rang out again.
Wedbush’s Dan Ives, though, thinks the bears have it wrong: just as they did in 2023, 2024, and every pullback since.
The way he sees it, we’re still barely into the second inning of a nine-inning ball game. The AI revolution, fuelled by Nvidia’s “golden chips”, is only just beginning to scale.
Demand outstrips supply by as much as ten to one, according to Wedbush’s field checks, and with a tweak to US export rules effectively allowing sales into China (for a 15% “fee” to Washington), the revenue taps aren’t shutting off any time soon.
The real driver is capital spending. US tech giants are set to plough roughly $350bn into AI infrastructure this year, with governments and corporates worldwide now following their lead.
The Middle East is a case in point: Saudi Arabia and the UAE are racing to build out huge AI data centres, partnering with Nvidia and the hyperscalers.
Valuation worries, says Ives, are a red herring. Every transformational growth stock – from Amazon to Tesla – looked “expensive” a year before its next leg higher.
Palantir, in his view, will grow into its multiples and then some, with Wedbush boldly forecasting a trillion-dollar market cap within three years.
That makes sell-offs like this week a buying opportunity. Nvidia’s results next week could provide the next jolt higher.
And while volatility will keep dragging bears out of hibernation, Wedbush insists the tech bull cycle still has another two to three years to run.