AI rally rolls on as Nvidia hype outweighs inflation and rate fears
Speakers
Dan Ives
— Managing Director, Wedbush Securities
Vance Howard
— CEO, Howard Capital Management
Summary
Dan Ives and Vance Howard discuss the ongoing AI rally led by Nvidia, dismissing inflation and rate fears as temporary headwinds. They express bullish views on tech stocks, the S&P 500, Nvidia, and Cummins, advocating buying dips and staying long AI-related equities.
- Dan Ives predicts tech stocks up 10-12% for the rest of the year.
- Dan Ives is highly bullish on Nvidia ahead of earnings, citing supply-demand imbalance.
- Vance Howard targets S&P 500 at 7700-7800 by mid-summer and 8000 later.
- Vance Howard recommends staying long technology, using pullbacks to add positions.
- Vance Howard also likes Cummins for data center power needs.
- Both speakers see any pullback as a buying opportunity.
- Vance expresses caution on rising bond yields and energy costs as potential inflation risks.
- The episode focuses on AI as the dominant market theme.
Trade Ideas
Tech stocks up 10-12% this year.
Tech stocks will rise another 10-12% for the rest of the year, driven by the fourth industrial revolution in AI. Any pullbacks will be bought, and the AI trade is still in the early innings.
S&P 500 to 7700-7800 by summer.
The S&P 500 will reach 7700-7800 by mid-summer and eventually 8000. Any pullback is a buying opportunity, and the market is set to go higher.
Nvidia earnings to break out higher.
Nvidia earnings will be a breakout catalyst because street estimates are underestimated by 15-20% over the next few years. Supply-demand is 10-to-1 for Nvidia chips, and the H200 ramp is not priced in. AI is still early.
Cummins play on data centers.
Cummins is a great play for data center power needs. Its engines are required for AI build-out, offering leverage to the industrial side of AI.
