Wedbush Securities analyst Dan Ives joined CNBC's "Squawk Box" Friday and predicted that Nvidia's blowout fourth-quarter earnings is the start of a tech bull market that will continue into 2025.
What Happened: Ives referred to Nvidia CEO Jensen Huang as the "Godfather of AI" and said Nvidia has laid the foundation for future spending on the build out of AI infrastructure. Ives predicts the "tidal wave" of AI-build-out spending will benefit AI-related infrastructure, software and services companies.
"We think for every dollar of spend on a GPU, there can now be a multiplier of $10, $12 … into software and into chips," Ives said.
Why It Matters: Ives pointed to companies including MongoDB, Inc. MDB, Palantir Technologies, Inc. PLTR and Snowflake, Inc. SNOW as well-positioned to benefit from the build-out of AI.
Ives sees supply and regulatory issues as temporary roadblocks, but believes that the AI revolution and the associated monetization is only just beginning.
"Is this a 1995 or 1999 Moment? Our answer is firm and confident: this is a 1995 Moment as now the AI Revolution and $1 trillion of incremental spending over the next decade is hitting the tech sector. AI party just starting," Ives posted on X Friday.
NVDA, MDB, PLTR, SNOW Price Action: According to Benzinga Pro, Nvidia shares closed up 0.36% at $788.17, MongoDB shares closed up 0.34% at $451.52, Palantir shares closed 0.7% lower at $22.99 and Snowflake shares closed 1.65% higher at $229.34 Friday.
Image: Pete Linforth from Pixabay
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