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Nvidia is one of Daniel Ives’ stock picks.
Dream time
Recent gains for the heavy Nasdaq Composite have been limited, with only two positive days in August. Analyst Daniel Ives at Wedbush sees a big bounce soon.
Despite posting slight gains on Thursday, the Nasdaq closed below its 50-day moving average for the first time since mid-March on Wednesday. The index fell 4.6% for the month, pressured in part by higher Treasury yields. Latest earnings from
apple
(Stock ticker: AAPL), as well as well-known software names including
Palantir Technologies
(PLTR) f
datadog
DDOG failed to impress investors. It doesn’t help that August is historically the month The second worst month for the index.
“We expect the decline to be short-lived,” Ives said in a note on Friday, still firmly sticking to his bullish call that technology stocks could see a 12% to 15% increase in the second half of the year. He expects the tech market to continue to rage for the next 12 to 18 months.
Ives has always been a tech bull and he predicted it
apple
To reach $4 trillion market capitalization by 2025. The company is currently valued at $2.8 trillion.
The analyst’s optimism about the Nasdaq stems from his view that AI is not a noise cycle and that spending on AI tools will slowly rise, with companies allocating $800 billion to the region incrementally over the next decade.
“Rome wasn’t built in a day, and neither was the AI ecosystem — but let’s be clear, this build is unlike anything we’ve seen since the Internet in 1995,” he said.
winners? He chose Nvidia (NVDA), which leads the semiconductor market used for artificial intelligence applications. Ives rates the company’s stock at Outperform with a price target of $490.
Other picks include
Microsoft
(MSFT), the investor in OpenAI – the developer of artificial intelligence ChatGPT, and Apple, which is expected to build an application store based on artificial intelligence. He rates the stock performance of both companies, with price targets of $400 and $230, respectively.
Write to Karishma Vanjani at karishma.vanjani@dowjones.com.
