Nvidia earnings seen as AI validation moment, Wedbush’s Ives says

Investing.com - In a highly anticipated report, NVIDIA (NASDAQ: NVDA) is set to post its quarterly earnings this Wednesday after market close. Wedbush tech analyst Dan Ives expects the chipmaker and CEO Jensen Huang, whom he calls the ’Godfather of AI,’ to deliver amid ongoing AI demand.

Ives described Nvidia as "a foundational piece of this AI Revolution," predicting the company will "handily exceed Street estimates" based on positive supply chain checks from Asia and strong capital expenditure numbers from major technology companies in late October earnings reports.

Ives believes Wall Street continues to underestimate Nvidia’s future performance, projecting that Big Tech capital expenditures alone will exceed $550 billion in 2026, with additional growth coming from enterprise, government, and global adoption over the next 12 to 18 months.

The analyst said the upcoming earnings report represents a potential "positive catalyst for tech stocks into year-end" and could provide "an important validation moment around global demand drivers/magnitude for the AI Revolution" from Huang’s perspective.

Ives estimates that for every dollar spent on Nvidia products, there is an $8-$10 multiplier effect across the broader technology ecosystem, with Nvidia’s performance coming amid ongoing trade negotiations regarding China chip restrictions implemented by the Trump Administration.

"We believe Nvidia’s earnings will be another major validation moment for the AI Revolution and be a positive catalyst for tech stocks," Ives concludes.

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