Nvidia’s Bright Future Amidst Antitrust Probe
Despite recent headlines surrounding an antitrust probe in Beijing, Nvidia’s stock remains a darling on Wall Street. Wedbush analyst Dan Ives, who recently sat down with Opening Bid podcast, takes a bullish stance on the company’s future.
A $1 Billion Fine Won’t Deter Nvidia’s Growth
Ives brushes off concerns about the potential $1 billion fine, focusing instead on the company’s impressive demand-to-supply ratio of 15:1. He likens the current situation to an all-night party, where minor setbacks won’t stop the momentum. “You’re going to have these nervous moments,” he says, “but our view is this is just the beginning — year two of a 10-year build-out.”
Nvidia’s Dominance in AI and Cryptocurrency
Ives, who has dubbed Nvidia CEO Jensen Huang “the godfather of AI,” believes the company’s products will continue to drive growth. The incoming administration’s enthusiasm for cryptocurrency has also put Nvidia on the map, as miners rely on its servers. Bank of America analyst Vivek Arya agrees, citing Nvidia’s forthcoming Blackwell and Rubin GPUs as proof of its potential for further growth.
Competition Won’t Deter Nvidia’s Lead
While other companies may try to join the AI and cryptocurrency wave, Ives believes Nvidia’s dominance will remain unchallenged. “They’re the only game in town,” he says. “We assume there will be others that benefit here, but there’s only one selling these chips and it’s Nvidia.” Ives forecasts that the company’s market capitalization could reach as high as $5 trillion in the near future.
A Leader in AI and Beyond
Nvidia’s solid free cash flow generation, fast-growing megacap status, and innovative products have earned it a spot as a top-valued company in the world. As Ives puts it, “More and more the foundation starts with Nvidia. That’s not changing.” With its sights set on a 10-year build-out, Nvidia is poised to continue its upward trajectory, despite any minor setbacks along the way.
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