Dan Ives Says the AI Trade Is Only in the "Third Inning." Should Investors Stay Long AI Stocks?
The AI megatrend may still be young, but the focus for businesses is shifting from buying chips to monetizing AI across infrastructure, cloud, and software.
Dan Ives, a senior managing director at Yorkville Ives, recently stated in a CNBC interview that the artificial intelligence (AI) revolution is only in the third inning. Comparing it to a baseball game, Ives emphasized that Nvidia (NASDAQ: NVDA) is at the forefront of this technological advancement, with its processors being the key driving force behind the AI boom. Ives' statement was not based on social media hype, but rather on the performance of real businesses in the AI sector.
In his July comments, Ives highlighted two companies as integral parts of the AI trade: CoreWeave (NASDAQ: CRWV) and Cisco (NASDAQ: CSCO). CoreWeave is an AI cloud provider that specializes in building data centers around Nvidia's graphics processing units (GPUs) and custom infrastructure, renting out the compute capacity to clients. On the other hand, Cisco sells networking hardware and software that connect servers and clusters within data centers and enterprise networks.
According to Ives, the spending in the AI build-out is expanding beyond chips into cloud platforms and the data-moving infrastructure. This suggests that the AI trade is not just limited to the production of powerful processors, but also encompasses the necessary cloud platforms and networking components that support the overall AI ecosystem. Investors looking to stay long in AI stocks may want to consider these developments and the potential growth opportunities presented by these companies.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
