- Wedbush analyst Dan Ives believes AI is “the Fourth Industrial Revolution in progress” rather than a cycle of hype.
- Ives told CNBC’s “Squawk Box Asia”: “Despite many of the bears remaining genuinely skeptical, we are just beginning what appears to be the beginning of a new tech bull market. I think,’ he said.
- He said he expects AI to “add $1 trillion in spending over the next 10 years.”
Generative artificial intelligence is all the rage right now, but the AI boom is more than just hype, says Wedbush Securities’ Dan Ives, calling it “the Fourth Industrial Revolution in progress.” there is
“This is what I call the 1995 moment, alongside the internet. I don’t think it’s a hype cycle,” the managing director and senior equity research analyst said Wednesday on CNBC’s “Squawk Box Asia.” said in
The Fourth Industrial Revolution refers to how technological advances such as artificial intelligence, self-driving cars, and the Internet of Things are changing the way humans live, work, and interact.
“This is a truly transformative change to technology that I think will change the tech industry for the next 20 to 30 years,” said Ives. “Despite the fact that many of the bears are still genuinely skeptical, we think we are just at the beginning of what appears to be the beginning of a new tech bull market.”
After ChatGPT, OpenAI’s viral chatbot, went viral due to its ability to generate human-like responses to user prompts, the surge in adoption of AI technology surprised researchers and the public.
“At the end of the day, I think NVIDIA’s $4 billion guidance range is due to guidance heard around the world. I think it’s the tip of the iceberg,” he said.
US chip maker Nvidia makes graphics chips for gaming and AI. These chips help drive the technology behind ChatGPT and Alphabet’s Bard chatbot.
Nvidia said it expects second-quarter sales to be around $11 billion. That’s more than 50% above Wall Street’s $7.15 billion forecast, which Mr. Ives called “startling guidance.”
Nvidia stunned investors and analysts in May by reporting a better-than-expected first-quarter profit of more than $2 billion and revenue of $7 billion.
“There’s going to be $1 trillion in increased spending over the next 10 years, which may be modest. It wasn’t like that six months ago,” Ives said.
“That’s why I think what you’re looking at is multiple deployments. Investors are aware that this is not an AI gold rush, but I really think it is something. The only similarities in my career are the Internet in 1995 and his Apple iPhone moment in 2007,” the analyst said.
