Tech strategist Dan Ives said the AI-driven tech rally remains in its early stages during an appearance on CNBC's Power Lunch, highlighting strong chip demand trends across Asia ahead of a key earnings season. Ives pointed to chip trading activity in Taiwan and Korea as evidence of robust demand, while emphasizing memory chip makers Samsung and SK Hynix as central players in the AI ecosystem. He stated investors are underestimating the earnings power and scale of the AI revolution, which he described as being in its 'third inning,' with benefits expected to spread from semiconductors into hyperscalers, software, and other technology sectors as adoption deepens.
Chip Trading in Taiwan and Korea Signals Demand Strength
Ives said chip trading across Taiwan and Korea is "the sign you want to see," adding that it reflects strong demand across Asia. He said "chips are gonna continue to weed this market higher."
He also said that when looking at Nvidia (NVDA) and others, "investors are underestimating the earnings power, and the scale and scope of what we're seeing in the AI revolution." Ives said the cycle is expected to spread into second-, third-, and fourth-order derivatives across hyperscalers, software, and other areas.
Ives added that the upcoming earnings season will be important for providing the validation and monetization the AI cycle needs.
Samsung and SK Hynix Positioned as Memory Cycle Epicenter
Ives highlighted Samsung and SK Hynix as key players in the global memory market, calling it the "epicentre" of the AI ecosystem. He said it is a market that, for many years, investors were not focused on, but added that it has now become central. He said memory remains essential and noted continued expansion from Korean semiconductor companies.
Samsung is set to report quarterly earnings later this month. South Korean chipmaker SK Hynix (SKHY) launched a roughly $28.1 billion U.S. share sale on Monday, taking a major step toward its Nasdaq Global Select Market debut.
Ives Highlights US-China Competition in Robotics and Physical AI
Ives said China is ahead in areas such as robotics and physical AI, adding that it continues to be a major player and winner in the sector. He added that the situation reflects a broader U.S.-China technology arms race, where issues around sovereignty and government involvement are increasingly creating "gray areas" in big tech.
NVDA and Semiconductor ETFs Show YTD Gains
On Stocktwits, retail sentiment for NVDA improved to 'neutral' from 'bearish' a day earlier, while message volume was 'low'.
Retail sentiment for the Roundhill Memory ETF (DRAM) eased to 'bullish' from 'extremely bullish' a day earlier, while sentiment for the iShares Semiconductor ETF (SOXX) remained 'bullish' over the past 24 hours.
The NVDA stock has gained 4.77% year-to-date, while DRAM is up nearly 140% and SOXX has advanced around 92% over the same period.
FAQ
What did Dan Ives say about NVDA and AI chip demand?
Dan Ives said during a CNBC appearance that investors are underestimating the earnings power and scale of the AI revolution, describing it as being in its "third inning." He highlighted chip trading activity in Taiwan and Korea as evidence of strong demand across Asia, and stated that chips will "continue to weed this market higher" when looking at Nvidia and other semiconductor companies.
Why are Samsung and SK Hynix important to the AI ecosystem according to Ives?
Ives called Samsung and SK Hynix the "epicentre" of the AI ecosystem due to their central role in the global memory market. He noted that memory remains essential to AI infrastructure and highlighted continued expansion from Korean semiconductor companies. SK Hynix launched a $28.1 billion U.S. share sale on Monday toward its Nasdaq debut, while Samsung is set to report quarterly earnings later this month.
How have NVDA and semiconductor ETF stocks performed year-to-date?
The NVDA stock has gained 4.77% year-to-date. The Roundhill Memory ETF (DRAM) is up nearly 140% over the same period, while the iShares Semiconductor ETF (SOXX) has advanced around 92% year-to-date.
