Nvidia After the Pullback: Is the AI Rally Still in Early Innings?
Analyst Dan Ives argues the AI revolution is only one-third complete. Here's what that means for Nvidia investors eyeing the dip.
Nvidia has become the defining stock of the artificial intelligence era, and every meaningful pullback in its share price has historically rewarded patient buyers. That pattern is now being tested again, as the chipmaker retreats from recent highs and investors weigh whether the broader AI trade still has room to run — or whether the easy gains are already banked.
Wedbush analyst Dan Ives, one of Wall Street's most vocal technology optimists, frames the current moment with a baseball metaphor: we are in the "third inning" of the AI revolution. The analogy implies that roughly two-thirds of the cycle's potential upside remains unrealized, a characterization that carries significant implications for Nvidia specifically, given that its graphics processing units remain the dominant infrastructure layer powering AI model training and inference at scale.
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The analytical case for continued Nvidia strength rests on the compounding nature of AI capital expenditure. Hyperscalers — the major cloud providers — have repeatedly signaled they intend to accelerate data center spending rather than pull back, and Nvidia's hardware sits at the center of nearly every major deployment. If Ives's framework is correct, demand for that hardware is structurally early rather than peaking, which would make current price weakness a buying opportunity rather than a warning sign.
That said, the risk picture is more nuanced than the bullish framing suggests. Nvidia faces intensifying competition from custom silicon developed in-house by its largest customers, export restrictions that limit addressable markets in China, and the inherent volatility of a stock trading at elevated multiples. A third-inning thesis can still accommodate significant turbulence between now and the final out, and investors who bought prior dips had to endure real drawdowns before being vindicated.
For long-term investors, the core question is whether Nvidia can sustain pricing power and volume growth long enough for earnings to grow into its valuation — a calculus that depends heavily on how quickly AI workloads expand beyond training into broader enterprise and consumer applications. Continue reading at Yahoo.
