Dan Ives breaks down Nvidia’s strong quarter, why the stock still sold off, and what Wall Street is overlooking about the next phase of the AI boom.
00:00 — Nvidia Earnings Breakdown
01:03 — What’s Driving the AI Rally
01:45 — Why the Stock Sold Off
02:23 — Is AI a Bubble?
03:48 — 2025 Tech Playbook
06:19 — Nvidia’s Biggest Threats
Transcript:
CAROLINE WOODS
Joining me now, Dan Ives, Managing Director and Senior Equity Research Analyst at Wedbush Securities. Dan, always a pleasure. Thanks so much for joining us.
DAN IVES
Great to be here. Thank you.
CAROLINE WOODS
All right Dan break it down for us. We’ve seen Nvidia’s numbers. We’ve seen the stock reaction. What is it that we need to know about what Nvidia had to say. Give us the highlights.
DAN IVES
I mean what? I think those are as good numbers as you’re going to get relative to half $1 trillion that they have in terms of Ruben and Blackwell demand guidance that they raise. You know, I call it, you know, 2 billion above whisper numbers. And this to me, just speaks to what’s going to be the early stage. There was a revolution playing out.
DAN IVES
And I think that this is another validation for what we saw.
CAROLINE WOODS
But if this is as good as it’s going to get in terms of the numbers, and it wasn’t enough to put the bears back into hibernation, what’s it going to take? I guess what fuels the next chapter of this AI rally?
DAN IVES
Look, I mean, it’s been a wolf. I don’t view it as this is as good as it gets. I mean, it’s accelerated quarter over quarter. And I think as you look into the next 12 to 18 months, you’re still early days and tell me when this is all going to play out. But as it plays out, I think more and more investors will understand the numbers that you’re seeing today.
DAN IVES
I think they’re underestimated by 20, 30% over the next year. And that’s why you want to be here to achieve that.
CAROLINE WOODS
So why do you think that the 5% gain we saw in Nvidia, which really pushed the entire market higher, fizzled out today? What went on there?
DAN IVES
I mean, whether it’s been driven in terms about very similar patterns here, if it’s sort of such a strong number and the stock sold off. What does that mean? Is it a risk stop for some new ideas. These are buying opportunities for women’s soccer, certain media. But for hyperscale and for Big Macs. But it’s my view, like you’re in year three of any one year build out.
DAN IVES
That continues to be the case.
CAROLINE WOODS
At this point, we’ve heard from all of the Mag seven in terms of Q3 earnings. What’s the biggest takeaway that you have from from the Mag seven earnings?
DAN IVES
Hey, I was not a bubble. I mean, it’s validation from hyperscalers and Palantir from Nvidia. I’m names. I mean, you know you look at bears will continue to argue it I know argued next year. But the reality is this is not a bubble. It’s the fourth industrial revolution that’s being built out.
CAROLINE WOODS
If this is a bubble and I know you don’t think it is, but if it was, what would bursting look like? What companies would still be intact, which would implode?
DAN IVES
I mean, if this is a bubble when I’m in the Asia, I’d see Demand’s off. I went to 12 to 1 demand for video chips. I wouldn’t see it across other chips. I wouldn’t see across hyperscalers, across Palantir. I mean, to me, that’s my whole point. Like anthropic has an income bubble job. I think the point is like, how can this be a bubble relative to where we are?
DAN IVES
We’re talking about trillions of dollars. It’s going to be it’ll be coming years. Still, early news.
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