Every $1 Spent On This Nvidia GPU Could Result In Up To $12 In Additional Tech Spending: Analyst

Zinger Key Points
  • Dan Ives thinks Nvidia has “cracked the code” and that the AI industry is still in its 1995 moment.
  • Ives added that for each $1 spent on an Nvidia GPU, there could be an additional spending of up to $12 across the tech ecosystem.

Wedbush's Dan Ives highlighted the potential ripple effect of Nvidia’s highly popular H100 GPU on the wider tech ecosystem.

What Happened: Ives suggested that every dollar spent on an Nvidia Corp NVDA H100 GPU could lead to an additional $10-$12 spending across the tech ecosystem.

"This in our opinion is about the 2nd/3rd/4th derivatives of the AI Revolution now playing out."

Earlier, after Nvidia's fourth-quarter results, Ives said that the "AI party" is just starting. He added that the current AI revolution is a 1995 moment, not a 1999 moment.

"Nvidia and the golden GPUs are the start of the spending wave…not the end," Ives said, adding that the Huang-led company had "essentially cracked the code."

Why It Matters: Ives’ statement comes in the wake of a growing consensus on the accelerating AI revolution. In February, Ives pointed to the better-than-expected Q4 results of mid-cap AI company c3.ai, Inc. as further evidence of this trend.

See Also: Elon Musk Reacts After AI Researcher Says She Does Not Trust OpenAI CEO Sam Altman To Lead AGI Project: ‘

Earlier, Microsoft Corp. MSFT CEO Satya Nadella underscored the rapid infiltration of AI across sectors, calling the revolution “fast and furious”.

Nvidia’s H100 chip, released in 2023, has been a game-changer in the AI and computing industries, contributing over $1 trillion to the company’s value. The chip’s high demand has led to customers facing up to six-month wait times.

However, ARK Investment Management CEO Cathie Wood has recently raised concerns about a potential market correction in the semiconductor sector due to improvements in the supply chain.

Despite this, AI’s future is expected to have a significant financial impact, with Ark Invest estimating a $28 trillion opportunity in the sector.

Price Action: Nvidia's stock closed 1.1% lower on Friday, according to data from Benzinga Pro.

Check out more of Benzinga’s Consumer Tech coverage by following this link.

Read Next: Nvidia Geforce Cloud Gaming Service Returns To Power After Massive Global Outage

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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