Wedbush Securities analyst Dan Ives said the Nasdaq will climb to 30,000 over the next year, arguing that strong tech earnings have validated Wall Street’s bullish view on artificial intelligence.
Ives told CNBC’s Squawk Box Europe that demand for AI chips continues to overwhelm supply, with earnings from major tech companies reinforcing the view that the AI infrastructure buildout is still in its early stages.
The rally has been led by renewed investor enthusiasm for AI infrastructure, memory chips, hyperscalers, software, cybersecurity, power, and other derivative plays tied to the sector. Nasdaq’s PHLX Semiconductor Sector Index has surged 38% over the past month, while Intel, Nvidia, Apple, and Alphabet have posted double digit gains.
Ives said investors should not limit the AI trade to one subsector, pointing to chips, software, cybersecurity, infrastructure, and power as major beneficiaries. He also described the current cycle as a memory super cycle, citing strong demand for companies such as SK Hynix.
The bullish call comes as concerns over AI valuations intensify. Michael Burry, the investor known for predicting the 2008 housing crash, warned that market behavior is starting to resemble the last months of the 1999 to 2000 dot com bubble. Burry said stocks are rising less because of economic data and more because investors are piling into the same AI thesis.
Paul Tudor Jones has taken a more balanced view, saying the AI fueled bull market may have another year or two to run while warning that valuation corrections could be severe. Jones has compared the current AI boom to earlier technology cycles, including the PC boom and the commercial internet buildout.
