Dan Ives: AI buildout not seeing any cracks in demand
Speakers
Dan Ives
— Star Analyst at Wedbush
Summary
Dan Ives of Wedbush Securities discusses his recent trip to Asia, expressing increased bullishness on the AI sector due to strong, uncracked demand. He sees this as positive for hardware, hyperscalers like Microsoft, Google, and Amazon, and the software trade, which he believes is due for a rebound. He also addresses supply chain concerns, noting no immediate issues, and highlights specific software companies to watch.
- Dan Ives returned from a two-week Asia trip more bullish on AI demand.
- He sees no cracks in AI buildout, expecting strong earnings for hardware and hyperscalers.
- Ives believes the software sector is due for a rebound after a disconnected sell-off.
- He specifically mentions Palantir and ServiceNow as key barometers for software monetization.
- Supply chain issues (helium, power) are noted but not an immediate concern for the next few months.
- Ives compares the AI cycle to the 'third inning,' indicating early stages.
- The discussion centers on the upcoming earnings season as a key test for AI monetization.
- The interview is set against the backdrop of strong tech demand and supply chain resilience.
Trade Ideas
AI demand accelerating, bullish for hardware and hyperscalers.
During a two-week trip to Asia, Ives observed that demand for AI is accelerating and there are no cracks in the AI buildout. This is bullish for hardware players, hyperscalers (Microsoft, Google, Amazon), and the software trade, as it indicates strong earnings and monetization. He calls it a 'bright green light' going into earnings season.
Software sector due for rebound, watch Palantir and ServiceNow.
The software sector has seen a disconnected sell-off and is due for a huge rebound. He specifically mentions Palantir and ServiceNow as companies to watch as barometers for the software trade, as they will demonstrate monetization of AI.
