Dan Ives Says AI Disruption Is ‘On Full Display’ In Tech Earnings, Sees 2027 As Inflection Year

In a post on X, Ives said the AI transformation “is not a straight line upward” but that “winners remain.”

• Ives maintained his bullish AI thesis despite market volatility on Friday.
• The tech analyst sees 2027 as a major inflection year when AI monetization could begin to justify the industry’s heavy capital expenditures.
• He said that AI monetization will not happen “overnight,” while pointing to strong cloud numbers and capital spending as key parts of the investment thesis.

Yorkville Ives partner and senior managing director Dan Ives said on Friday that the “disruption” from artificial intelligence was becoming increasingly visible amid tech earnings, with shares of Amazon (AMZN), Intel (INTC) and SanDisk (SNDK) declining in morning trade after their quarterly results. 

“The disruption caused by AI is on full display during tech earnings and the uncertainty around which names and sectors will be the disruptors vs the disrupted,” he wrote in a post on X. “As we have said in this AI transformation it’s not a straight line upward, but winners remain and our bullish thesis unchanged.”

Source: @DivesTech/X

U.S. equities tumbled in morning trade on Friday. The SPDR S&P 500 ETF (SPY) dropped more than 1.1%, the SPDR Dow Jones Industrial Average ETF (DIA) slipped 0.3%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) was the hardest hit, down as much as 2.69%. Retail sentiment around QQQ on Stocktwits remained in the ‘bearish’ zone over the past day. 

INTC stock led the slide among the Nasdaq-100, dropping over 30%, in its worst day since April 1979, according to Koyfin data. Michael Saylor-backed Strategy (MSTR) dropped over 11% amid Bitcoin’s (BTC) slide after cryptocurrency exchange Binance was hacked for $6.3 billion. 

CoreWeave (CRWV), Arm Holdings (ARM) and Advanced Micro Devices (AMD) each fell around 10%. Meanwhile, Nebius (NBIS), SNDK stock, Datadog (DDOG) and others in the top 10 losers fell around 7% each. 

Ives Sees 2027 As The Year AI Spending Pays Off

Ives said the shift will take time, but that he still expects AI spending to pay off. “This AI Revolution will be very disruptive to many sectors of the tech food chain and monetization is not overnight,” he wrote, “But we continue to believe 2027 is the major inflection year where AI monetization starts to justify the capex dollars.”

He pointed to cloud growth and strong capital expenditure as the “key piece” to track. 

Amazon, Intel And SanDisk Fall After Earnings

AMZN stock fell as much as 2.5% in morning trade after the company reported third-quarter (Q3) earnings of $1.89 a share on revenue of $201.9 billion, both slightly below analyst estimates. 

Free cash flow, the cash left after capital spending, was negative $42.4 billion over the past twelve months. Amazon kept its 2026 capex forecast at $220 billion. Revenue at Amazon Web Services, its cloud unit, rose 39% to about $46 billion.

INTC stock fell over 30% after its fourth-quarter (Q4) outlook disappointed investors, which led to a slew of price cuts and downgrades from Wall Street. Meanwhile, SNDK stock fell around 9% even though its fiscal first-quarter (Q1) results came in above estimates. The data storage company also announced an 8-for-1 forward stock split.

The sell-off followed a sharp decline in Alphabet (GOOGL) on Thursday. The stock fell 12% after the Google parent missed Q3 earnings and revenue estimates and reported negative free cash flow of $9.07 billion. Over $500 billion of Alphabet’s market capitalization was wiped out. 

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