Wedbush’s Daniel Ives says that Nvidia (NVDA, Financials) is still the best company to buy during the AI boom. Ives called AI the “Fourth Industrial Revolution” in a new note to investors and said that businesses and governments would spend $2 trillion on it over the next three years. Nvidia, which has a strong hold on the AI chip industry, is likely to benefit the most.
Ives also called a recent change in U.S. policy that lets Nvidia start selling its H20 chips to China again a “key strategic positive” and said it could mean that trade tensions will ease in the future. He also said that AI has a bigger effect than most people think. He thinks that for every $1 that goes into Nvidia, $8 to $10 more is made in the IT ecosystem. He says the ripple effect keeps Nvidia at the center of the tale.
On the day the memo came out, Nvidia’s stock price went up 1.53%.
This article first appeared on GuruFocus.
