Despite a rocky start to the year due to concerns over China export controls and global tariff issues, both companies have seen a significant rebound in their stock performance. This is largely due to the ongoing AI innovation and substantial investments in AI infrastructure. Ives mentioned that Nvidia and Microsoft are “foundational pieces” in the ongoing AI revolution.
Both companies are projected to reach the $4 trillion market cap milestone this summer, with the focus then shifting to the $5 trillion mark over the next 18 months. Ives believes that the tech bull market is still “in its early stages,” driven by the AI revolution.
The analyst is particularly optimistic about Nvidia’s impact on the AI ecosystem, estimating an $8 to $10 multiplier effect for every dollar spent on Nvidia across the tech ecosystem.
Why It Matters: In late June, Nvidia’s stock price hit a new all-time high, with the technical outlook remaining robust. This surge was attributed to a combination of factors, including FOMO, results, analyst trends, institutional activity, and short-covering.
CEO Jensen Huang also identified robotics as Nvidia’s next major growth opportunity, following AI, at the company’s annual shareholders meeting.
In the second quarter of 2025, Wall Street’s tech darlings, including Nvidia and Microsoft, pushed sector benchmarks to one of their strongest quarterly gains on record, reigniting optimism for a continued summer rally.
Nvidia shares have been on a tear, hitting a new all-time high in late June and are expected to continue rising. On a year-to-date basis, the Microsoft stock surged 18.83%.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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