2 weeks ago
Dan Ives: AI revolution only 10-15% complete, biggest phase ahead
A smart money expert named Dan Ives studies technology companies.
He says the artificial intelligence boom has only just started.
He thinks we are only about 10 to 15 percent through the AI revolution.
That means the biggest and most exciting part is still coming.
He says lots of countries, not just the US and China, are building AI computers.
There are many more people who want AI chips than there are chips available.
He says big banks are helping pay for all this building.
Companies are starting to make money from AI instead of just spending on it.
Dan thinks every dollar spent on AI could bring back five or six dollars later.
He says people who bet against AI might be missing out on something huge.
Wedbush strategist Dan Ives says the AI revolution is only 10-15% complete, with the biggest phase still ahead.
Ives says the AI buildout is becoming a global story, with the Middle East, Australia and parts of Europe investing in infrastructure.
Ives estimates demand-to-supply for AI chips at 13-14 to one, with enterprises lining up for data centres and GPUs.
He says the industry is shifting from capital expenditure to monetization, citing hyperscalers, CoreWeave and Nebius as validation.
Ives estimates every $1 of AI capital expenditure could generate a $5-$6 revenue multiplier across the tech industry.
- Who
- Dan Ives, tech strategist at Wedbush Securities, speaking in a CNBC interview.
- What
- Argued the AI revolution is only 10-15% complete, with the biggest phase ahead and investment continuing to surge.
- Where
- Not specified; comments made during a CNBC interview.
- When
- Not specified in the articles.
- Why
- Because Ives believes the scale of AI infrastructure investment makes it difficult to bet against the technology and that monetization is beginning.
AI Skeptics
AI Bulls
AI opportunity valuation
AI Skeptics
Some investors worry the AI opportunity is being overestimated and that spending is outpacing returns.
AI Bulls
Ives says those betting against tech companies may not account for AI's effect on future revenue and margins.
Financing the AI buildout
AI Skeptics
There are concerns about circular financing and whether companies can absorb large debt raises, such as Oracle's plans.
AI Bulls
Ives says major banks' involvement shows compute is a valuable asset class and the race is not stopping, though some financing plans may be hard to digest.
Key facts
- Analyst
- Dan Ives
- Firm
- Wedbush Securities
- AI revolution progress
- 10-15% complete
- Chip demand-to-supply ratio
- 13-14 to 1
- Capex revenue multiplier
- $5-$6 per $1 of capital expenditure
- Companies cited
- Microsoft, Cisco Systems, IBM, Oracle, Nvidia, CoreWeave, Nebius
- Regions investing in AI
- Middle East, Australia, parts of Europe
Quotes
Dan Ives
Wedbush tech strategist
“"That was the validated sign investors needed to see, not just in capex, but in terms of enterprises starting to monetize going into now the second, third, and fourth-order derivatives."”
financialexpress.com
“"It’s an arms race playing out, and you cannot, in this arms race, just watch it from the stands."”
financialexpress.com
Sources
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