Wedbush analyst Dan Ives cited Nvidia’s market dominance and NVDA And the talent of a young LeBron James.
What Happened: Last week, Ives reiterated his bullish outlook for Nvidia, comparing it to one of the greatest basketball players of all time.
“If you look at Nvidia here, this is the same as LeBron in high school in terms of where this story ultimately goes,” Ives told Bloomberg.
Ives also highlighted NVIDIA’s lead over competitors, calling the company “the only choice.” Despite concerns about delays to upcoming Blackwell chips, Ives praised NVIDIA’s strong revenue outlook.
He also highlighted the multiplier effect that Nvidia has on the technology sector, explaining that every dollar spent on the company’s chips creates an eight to 10 times ripple effect across the industry, according to Fortune magazine.
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Ives expects capital spending on AI to reach $1 trillion over the next three years, double the forecast made six months ago.
Nvidia’s shares fell 8% for the week, but most Wall Street analysts, including Bank of America Global Research, continue to maintain a “buy” rating on the stock.
Why it matters: In the absence of a background article, the importance of this news can be inferred from the information provided. Comparing Nvidia to a young LeBron James highlights the company’s potential and unique position in the tech industry.
Expected capital spending in AI and the multiplier effect of Nvidia’s chips suggest the company’s future is promising despite short-term stock price volatility.
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