Nvidia After the Pullback: Is the AI Rally Still in Early Innings?
Analyst Dan Ives argues the AI revolution is only one-third complete, raising the question of whether Nvidia's recent dip is a buying opportunity.
Few stocks have come to symbolize the artificial intelligence investment boom quite like Nvidia, and few analysts have been more bullish on the sector than Wedbush's Dan Ives. His latest framing — that we are in the "third inning" of the AI revolution — suggests that despite the dizzying gains Nvidia has already posted, the broader technological and commercial buildout of AI infrastructure still has significant runway ahead of it.
The pullback in Nvidia shares has reignited a familiar debate among investors: is this a healthy correction within a secular growth story, or a sign that the market has finally priced in the most optimistic AI scenarios? History offers some comfort to the bulls. Those who bought Nvidia during previous sell-offs — whether driven by macroeconomic jitters, export restrictions, or broader tech sector rotations — have consistently been rewarded as the stock recovered and pushed to new highs.
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Yet the analytical context matters here. Ives's baseball metaphor implies that the heaviest capital spending on AI data centers, chips, and supporting infrastructure is still ahead of us. If that framing holds, then Nvidia's position as the dominant supplier of high-performance GPUs for AI training and inference would make it a structural beneficiary of spending cycles that are still accelerating, not plateauing.
The counterargument is valuation. Nvidia trades at a premium that already bakes in extraordinary growth expectations, meaning any stumble in data center demand, competitive pressure from custom silicon developed by major cloud providers, or regulatory headwinds could compress the multiple quickly. Investors weighing an entry point must balance the long-term thesis against the near-term risks that a high-valuation stock always carries.
For now, the weight of Wall Street sentiment, anchored by voices like Ives, continues to lean bullish on Nvidia as a core AI infrastructure play. Whether the third-inning analogy proves accurate will depend largely on how aggressively enterprises and governments continue committing capital to AI buildout in the quarters ahead. Continue reading at Yahoo.
