Analyst Daniel Ives of Wedbush called Nvidia the AI economy's new precious commodity and said Nvidia has become the world's most valuable company, surpassing Apple and Microsoft. He also described Nvidia's GPU chips as essential to AI adoption and forecast AI-driven spending rising by about $1 trillion over the next decade.
Nvidia Corp (NASDAQ: NVDA, ETR: NVD) is being hailed as the AI economy's new precious commodity, according to Daniel Ives, an analyst at Wedbush, who rates the semiconductor firm at ‘outperform.’
Ives described Nvidia founder and CEO Jensen Huang as “the godfather of AI,” noting that Nvidia has recently become the world's most valuable company, surpassing both Apple and Microsoft. These tech giants are now vying to be the first $4 trillion company, driven by the growth in AI.
“Nvidia's GPU chips are in essence the new gold or oil in the tech sector as more enterprises and consumers quickly head down this path with the 4th Industrial Revolution well underway,” Ives said in a note.
Ives also addressed concerns about valuations, stating, “While the bears will continue to harp on valuations of Nvidia, Microsoft, Palantir, MongoDB, ServiceNow, and other AI pure plays, we believe investors that have missed the biggest transformational tech stocks the last decade including Amazon, Netflix, Meta, Apple, Alphabet among many others have dogmatically stuck with the forward PE valuation approach on these unique tech stories.”
He predicts a substantial increase in AI-driven spending, estimating an incremental $1 trillion over the next decade.
