Wedbush Securities analyst Dan Ives said the Nasdaq will rise to 30,000 points over the next year, arguing that strong technology earnings validated Wall Street’s optimistic view of artificial intelligence.
Demand for AI chips continues to outstrip supply, Ives told CNBC’s Squawk Box Europe, with earnings from big tech companies reinforcing the view that building AI infrastructure is still in its early stages.
The rally has been driven by renewed investor enthusiasm for AI infrastructure, memory chips, hyperscalers, software, cybersecurity, energy, and other derivative plays tied to the sector. The Nasdaq’s PHLX semiconductor sector index rose 38% over the past month, while Intel, Nvidia, Apple and Alphabet posted double-digit gains.
Ives said investors should not limit AI trading to one subsector, citing chips, software, cybersecurity, infrastructure and energy as the main beneficiaries. He also described the current cycle as a memory supercycle, pointing to strong demand for companies like SK Hynix.
The bullish call comes as concerns grow over AI valuations. Michael Burry, an investor known for predicting the 2008 housing market crash, warned that market behavior was starting to resemble the final months of the dot-com bubble of 1999 to 2000. Stocks are rising less because of economic data and more because investors are piling on the same AI thesis, Burry said.
Paul Tudor Jones took a more balanced view, saying the AI-fueled bull market may have another year or two to go while warning that valuation corrections could be severe. Jones compared the current AI boom to previous technology cycles, including the personal computer boom and the building of the commercial Internet.
