AI Bounce: Nvidia, Microsoft Emerge from 'Brutal' Week
Analyst Dan Ives of Wedbush Securities believes that software stocks may be nearing a turning point, despite a 'brutal' week. In an interview with CNBC, he stated that as long as AI companies follow through on their capex spending, the period will be looked upon as an opportunity in the future.
Ives highlighted Nvidia (NVDA) as a 'stunner', attributing its downturn to 'nervous' tech investors. He predicted the stock would eventually reach $210-$215 and reiterated Wedbush's bullish stance on it. Shares of NVDA have declined around 9% since posting earnings, but have climbed over 47% in the past year.
Ives also emphasized Microsoft (MSFT) as one of his top picks for the year, citing its potential to generate incremental revenue of $35 billion to $40 billion from its Azure customers who have gone down the AI path. He noted that MSFT's shares have remained relatively flat in the past year.