We're In 'The Third Inning of The AI Revolution' Says Ives
Speakers
Dan Ives
— Managing Director, Wedbush Securities
Summary
Dan Ives of Yorkville Ives & Co argues that the AI revolution is only in its third inning, making hyperscaler CapEx spending essential despite market skepticism. He says Intel is a comeback story with government backing, Apple will dominate consumer AI, and the U.S. is pulling ahead of China in tech for the first time in decades.
- AI revolution is in its third inning; hyperscalers are in a CapEx arms race to secure prime AI infrastructure positions.
- Alphabet's post-earnings selloff was misguided given strong cloud growth and necessary AI spending.
- Intel is the comeback kid, buoyed by U.S. government support, and is a positive barometer for tech.
- Apple has an AI strategy anchored on its 2.5 billion iOS device install base, setting up a massive iPhone 17 upgrade cycle.
- Enterprises are accelerating cloud modernization and AI use cases, sustaining hyperscaler demand.
- Dan Ives expects a tidal wave of tech equity issuance as companies raise capital to stay competitive in AI.
- U.S. tech has moved ahead of China for the first time in 30 years, reinforcing America's AI leadership.
Ideas
Intel is the comeback kid.
Intel is becoming the comeback kid with a big helping hand from the U.S. government, serving as a positive barometer for tech spending and confidence ahead of hyperscaler earnings and enterprise demand acceleration.
Buy hyperscalers for AI arms race.
Hyperscalers are in an AI arms race in the early third inning of the AI revolution; cloud demand is accelerating, enterprises are modernizing, and cutting CapEx would mean losing out, so long-term investors should focus on demand acceleration rather than short-term knee-jerk reactions to spending.
Apple is the consumer AI toll collector.
Apple finally has a real AI strategy built on its massive 2.5-billion iOS device install base and 1.5 billion iPhones, positioning it as the toll collector on the consumer AI highway and setting up a surprise iPhone 17 upgrade supercycle.
