Nvidia shares pop as analysts dismiss AI bubble concerns
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Investing.com -- The AI boom is not a bubble but the early stages of a decade-long transformation, according to Wedbush analyst Daniel Ives, who described Nvidia’s latest results as a defining point in the current tech cycle.
In a new note, the Wedbush analyst argued that this week marked “an extremely important moment in the AI Revolution thesis” and that “this is a 1996 Moment… and NOT a 1999 Moment.”
Ives said the quarter delivered by Nvidia and CEO Jensen Huang, referred to by Wedbush as the “Godfather of AI Jensen,” addressed ongoing fears about overheating valuations.
According to Wedbush, Nvidia provided “a drop the mic quarter/guidance” that cut through investor concerns ranging from U.S.–China tensions and Trump tariffs to questions about long-term capex sustainability.
The firm highlighted Nvidia’s guidance for “65% overall revenue growth for next quarter” and the acceleration in demand for Blackwell and Rubin chips, which it said “blew away Street/whisper estimates.”
Wedbush also pointed to Jensen’s comments on hundreds of billions in AI-related capex that are becoming profitable far more quickly than expected.
Ives argued that these results confirm the AI boom is entering “Year 3 of a 10-year build out of this 4th Industrial Revolution,” with tech bears again at risk of missing a major structural shift.
Based on Wedbush’s channel checks and global demand tracking, Ives said the industry remains only in “the Top of the 3rd inning in the AI Field of Dreams game.”
Wedbush sees Nvidia as the central pillar of the entire AI economy, writing: “There is one company in the world that is the foundation for the AI Revolution and that is Nvidia.”
Ives expects Big Tech capex to reach $550 billion to $600 billion in 2026 and reiterated that the United States is now “ahead of China in the tech race for the first time in 30 years.”