Nvidia earnings boost tech rally, says Wedbush analyst

Nvidia's recent earnings report exceeded expectations, prompting a positive outlook from analysts, including Wedbush's Dan Ives. He likened Nvidia's potential to that of a young LeBron James, emphasizing its competitive edge in the tech industry. Despite some investor concerns regarding delays in the upcoming Blackwell chips, Ives noted that CEO Jensen Huang's revenue guidance remained strong, alleviating fears. He projected significant revenue growth from Blackwell, estimating it could reach tens of billions of dollars. Ives highlighted the multiplier effect of Nvidia's chips, suggesting that every dollar spent generates eight to ten times that amount across the tech sector. He anticipates a $1 trillion investment in AI over the next three years, doubling his previous forecast. The demand for Nvidia's products is expanding beyond major tech companies, as more enterprises adopt AI technologies. Other analysts echoed Ives' sentiments, maintaining a 'buy' rating for Nvidia shares despite a recent decline in stock price. Bank of America Global Research raised its price target for Nvidia, recognizing it as a key beneficiary of the generative AI cycle. They advised investors to overlook short-term fluctuations in quarterly earnings. Overall, the sentiment among analysts remains optimistic about Nvidia's role in the ongoing AI revolution, with expectations that the tech rally will continue to gain momentum. The market's reaction to Nvidia's earnings reflects a broader confidence in the company's future prospects and the growth of AI applications across various industries.