The tech strategist says the AI trade is expanding beyond semiconductors, with earnings season set to test how far the rally can run.
- Ives says investors are underestimating the earnings power of AI, with benefits set to spread from chips to hyperscalers and software.
- He highlights memory chip makers like Samsung and SK Hynix as central to the AI ecosystem, calling them the “epicenter” of the cycle.
- Ives highlights a growing U.S.-China tech rivalry, pointing to robotics and physical AI as battlegrounds shaping the industry.
Tech strategist Dan Ives said the artificial intelligence-driven tech rally remains in its early stages, pointing to strong chip demand trends across Asia ahead of a key earnings season. He said investors are underestimating the scale and earnings power of the AI revolution, which he expects to expand beyond semiconductors into broader parts of the technology ecosystem as adoption deepens, while speaking on CNBC’s Power Lunch.
Chip Trading In Taiwan And Korea Signals Demand Strength
Ives said chip trading across Taiwan and Korea is “the sign you want to see,” adding that it reflects strong demand across Asia. He said “chips are gonna continue to weed this market higher.”
He also said that when looking at Nvidia (NVDA) and others, “investors are underestimating the earnings power, and the scale and scope of what we're seeing in the AI revolution.” Ives said the cycle is expected to spread into second-, third-, and fourth-order derivatives across hyperscalers, software, and other areas.
Ives said investors are underestimating the earnings power and scale of the AI revolution. He described the AI revolution as being in its “third inning,” and added that the upcoming earnings season will be important for providing the validation and monetization the AI cycle needs.
Samsung, SK Hynix Seen As ‘Epicenter’ Of Memory Cycle
Ives highlighted Samsung and SK Hynix as key players in the global memory market, calling it the “epicentre” of the AI ecosystem. He said it is a market that, for many years, investors were not focused on, but added that it has now become central. He said memory remains essential and noted continued expansion from Korean semiconductor companies.
While Samsung is set to report quarterly earnings later this month, South Korean chipmaker SK Hynix (SKHY) launched a roughly $28.1 billion U.S. share sale on Monday, taking a major step toward its Nasdaq Global Select Market debut.
Ives Flags US-China AI Tech Arms Race
Ives said China is ahead in areas such as robotics and physical AI, adding that it continues to be a major player and winner in the sector. He added that the situation reflects a broader U.S.-China technology arms race, where issues around sovereignty and government involvement are increasingly creating “gray areas” in big tech.
Retail Take On NVDA, Key Semi ETFs
On Stocktwits, retail sentiment for NVDA improved to ‘neutral’ from ‘bearish’ a day earlier, while message volume was ‘low’.
Meanwhile, retail sentiment for the Roundhill Memory ETF (DRAM) eased to ‘bullish’ from ‘extremely bullish’ a day earlier, while sentiment for the iShares Semiconductor ETF (SOXX) remained ‘bullish’ over the past 24 hours.
The NVDA stock has gained 4.77% year-to-date, while DRAM is up nearly 140% and SOXX has advanced around 92% over the same period.
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