Wedbush Securities managing director Dan Ives told CNBC’s Squawk Box Europe on Monday that he expects the Nasdaq to rise to 30,000 points next year as a bumper earnings season fuels even more enthusiasm for AI stocks.
A strong tech earnings season has replaced investor jitters earlier this year with bullish views on AI infrastructure development. As of Friday’s close, the Nasdaq Composite Index ended at 26,247.08, up 12.93% since the beginning of the year.
“These gains confirmed AI’s bullish theory,” Ives said. “The supply and demand for chips is 10 to 1. We are still in the early stages of the AI revolution. Haters will hate, and we know it.”
Michael Burley of “The Big Short” fame warned Friday that the stock market’s obsession with AI is starting to resemble the final stages of the dot-com bubble.
“Stock prices do not rise or fall based on employment or consumer sentiment,” Barry wrote. “Because they’re coming straight up. About the two-letter thesis that everyone thinks they understand. … It feels like the last months of the 1999-2000 bubble.”
But Ives supports AI gatherings continuing for another two years.
“This is a memory supercycle,” he said, referring to the unprecedented demand for memory chips driven by the rapid build-out of AI infrastructure. “When it comes to that, SK Hynix (and other memory companies as well) We’re very bullish on what we see there. ”
“It’s about hyperscalers, obviously chips, and then you have to compete with software, cybersecurity, infrastructure (and) power. You can’t just own one subsector, you have to own spin-offs,” Ives said.
Nasdaq Composite.
The Nasdaq PHLX Semiconductor Sector Index, made up of the 30 largest U.S.-listed semiconductor companies, has soared 38% over the past month. intel, Nvidia, apple and alphabet Both are experiencing double-digit growth.
Paul Tudor Jones, founder and chief investment officer of Tudor Investments, also added on CNBC’s “Squawk Box” on Thursday that the AI-powered bull market is still here, but could soon lead to a “breathtaking” valuation correction.
