Last week, Wedbush analyst Dan Ives said a strong report from Nvidia could ignite a massive tech rally into the end of the year. He isn't backing down from that call.
"We believe the new tech bull market is here," Ives said Tuesday on CNBC's "Squawk On The Street."
What To Know: Nvidia delivered its second consecutive quarter of blowout numbers last week. The chipmaker smashed estimates on both the top and bottom line and raised guidance significantly again, fueled by continued growing demand for its AI chips.
Despite surging initially on the report, the stock closed flat the following day, which shook some investors, but the move is just getting started, according to Ives.
"I believe we sit here six to eight weeks from now and that stock is much higher because ultimately it just comes down to, fundamentally, it's unprecedented growth that we haven't seen in 30 years — since [the] internet in 1995," Ives said.
Ives expects Nvidia to help lead the overall tech space much higher into the second half of the year and beyond. He's calling for a 12% to 15% rally into year's end and anticipates the momentum will continue in 2024.
"I view that pause that we saw, or sort of a selloff, as just more of a golden buying opportunity, not the time in my opinion to get out of this because I believe this is just half-time of a Super Bowl-type tech rally that we see going into the next 18 to 24 months," Ives said.
See Also: Cramer Picks Nvidia, Alphabet Over Other Mega-Cap Tech Stocks: 'Both Ready To Run'
Eyes On Apple: One stock that stands out in particular is Apple Inc AAPL. The tech giant on Tuesday announced that it will hold an upcoming event on Sept. 12. It's widely expected that the company will unveil the new iPhone 15 at the event next month.
Ives believes the next iPhone cycle is being underestimated by the Street
"I think Cupertino continues to play chess [while] others play checkers," Ives said.
Moreover, the boost from AI is going to start to show up in other tech giant's numbers early next year as use cases for the technology continue to expand, Ives said.
"We believe this is going to be a tech rally for the ages because of the transformational growth that we see on the horizon," he stressed.
NVDA, AAPL Price Action: At publication time, Nvidia shares were up 4.26% at $488.44 and Apple shares were up 1.94% at $183.69, per Benzinga Pro.
Photos: courtesy of Nvidia, Apple.
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